Blu-ray to accelerate PS3 sales, PS3 price cut by years end? [Archive]

View Full Version : Blu-ray to accelerate PS3 sales, PS3 price cut by years end?

Zeus

01-09-2008, 06:09 PM

Analysts believe the Warner exclusive Blu-ray news is good for the PS3 and that Blu-rays success will lead to an acceleration of PS3 sales. Around 70 –80% of PS2 owners used the console as their first DVD player and the same could be true of PS3/Blu-ray. Michael Pachter believes that this year HDTV penetration will cross 50% of households and thats when Blu-ray will become more relevant, and Sony will likely cut the price of the PS3. However others believe that exclusive games are the most important factor and Blu-ray is not a main concern.

<center><img src="http://www.maxconsole.net/content_img/pstpricu.jpg"></center></a>

Michael Pachter of Wedbush Morgan Securities thinks it's an important win, but the real impact won't be felt for some time since 1080p HDTV penetration is still fairly low. He does believe, however, that by the end of this year we'll start seeing a spike and that Sony will likely cut the price on PS3 by then as well.

Blu-ray has clearly gained momentum, and the upper hand, and the Warner announcement also provides a boost to the format, as well as for the advocates of Blu-ray as a standard. That said, locking up the suppliers of content and hardware manufacturers is only part of the equation. Consumers also must decide that they need a Blu-ray player, which seems more and more likely as prices decline," he said. "As for the PS3, it definitely can't hurt, despite the fact that gamers early in this console cycle have shown a preference for simple and more intuitive experiences (Wii and DS) over the traditional video games. But as the next-gen games continue to improve, and hardware prices reach more reasonable levels, I think we will see a better uptake of the PS3."

Finally, DFC Intelligence's David Cole noted that it's games, of course, that will be the ultimate determinant in the console wars. Blu-ray just happens to be a bonus for PS3 owners.

"I don't think Blu-ray alone is enough to get people to commit to a game platform," cautioned Cole. "However, if consumers are trying to decide between a game platform and they feel both are fairly equal in terms of games, then I think Blu-ray could be the swinging factor for the PS3. Nevertheless, the key factor is games. I don't think Blu-ray would ever be a swinging factor as big as say a game like Halo 3. The biggest boost for PS3 sales will most likely be 1) lower price; 2) more exclusive game software and only after that Blu-ray."

News Source: <a href="http://www.gamedaily.com/articles/news/bluray-to-unlock-true-value-of-ps3-accelerate-sales-price-cut-by-yearend/19030/?biz=" target=_blank">gamedaily</a>

daps83777

01-09-2008, 06:17 PM

the only way i see another price cut is if sony decides to be ok with the PS3 not turning a profit for another year, which would be contrary to what they have said there plans are saying they are going to try as hard as they can for the PS3 to turn a profit on 08. a price cut pretty much eliminates that considering they are making it sound like its going to be tight as is.

danight

01-09-2008, 06:18 PM

based on what?

Michael Pachter believes
who is he?

Just another guy guessing.... :rolleyes: those 70-80% didnt pay $400-600 dollars on a ps2 plus need a new tv just to watch dvd`s either, so that example is lame at best.

daps83777

01-09-2008, 06:24 PM

based on what?

who is he?

Just another guy guessing.... :rolleyes: those 70-80% didnt pay $400-600 dollars on a ps2 plus need a new tv just to watch dvd`s either, so that example is lame at best.

he is probably quoted more and interviewed more than just about any other guy in video game publications. he is in magazines or online stuff all the time. he gets interviewed on gametrailers fairly often i believe.

he gets alot wrong, but he is right sometimes as well. i don't see a price cut any time soon though. sony has already made price cuts, more just cut into them trying to break even with the PS3. another price cut would make them appear desperate to me, because if everything is going fine like sony says then there would be no need for a price cut, unless of course things aren't going as well and they think a price cut would increase the amount of potential consumers. but then that cuts into them trying to make the PS3 profitable.

pezjono

01-09-2008, 06:36 PM

50% of households having HDTVs by the end of the year!?!?

AHAHAHA, that was very funny...

pwntendo

01-09-2008, 06:37 PM

Sony has already shown their arrogance numerous times. Now that Blu-Ray has won the format war there certainly is no reason for them to cut the price of the PS3. If anything, their heads will only get bigger.

danight

01-09-2008, 06:39 PM

sigma8

01-09-2008, 08:40 PM

based on what?

who is he?

Just another guy guessing.... :rolleyes: those 70-80% didnt pay $400-600 dollars on a ps2 plus need a new tv just to watch dvd`s either, so that example is lame at best.

Did you just show up? Michael Pachter has been pretty spot on with predictions for years. We've been reading his predictions for months, and he's generally right or very close.

It's not like he's a PS3 fanboy, he's made plenty of rosy predictions for the 360 as well. Get a grip.

sigma8

01-09-2008, 09:07 PM

Well i think he is right and ps3 will have to take yet another price cut this year.
I expect Microsoft and Nintendo to lead the way to the $199.00 consoles and the ps3 will be forced to cut price no matter what the loss is to sony just to keep from falling out the race all together.MS will not be $199.. At least, not with a hard drive. They are still losing money on hardware, and AFAIK, their $279 "arcade" model is the least profitable.

Certainly, component prices will go down, and they will be able to trim costs. However, don't forget that the current prices are $279, $349, and $449.. The only one that has a shot at being $199 is the Arcade model, and we all know that's a waste of time.. You need a memory card for savegames, you have no space for downloads or updates (or patches *cough*).. And it doesn't come with a lot of nice perks, like the wireless gamepads.

I would be shocked if Microsoft doesn't take a price cut a few weeks before E3.
I would be shocked if anyone gives a crap about E3. Last year's was pretty pathetic. Lots of companies concluded it was a waste of time. Even if other companies thought it was worthwhile, the likely result will be that less companies attend it this year.

Nintendo will take one if wii sales stable off to keep demand high. Now sony would be crazy (they are anyways though) to drop price in before E3. That would make the average price drop for ps3 at around every 4 months (thats not gonna make consumers happy, thats gonna piss them off. especially the ones who payed $600.00 for it.)
Why? I mean, you're probably right. People bought the iPhone and when the price was dropped $200 after two months, people whined and whined. I bought my iPhone for full price, and my PS3 for full price, too. I wasn't complaining. It's not like they added some crazy new features (heck, in the PS3's case--they REMOVED features). If you don't want to pay the asking price, don't pay. Don't cry when they lower it. That's just selfish.. I'm amazed at how selfish people are. They don't care what they pay, just so long as everyone else pays the same.. That's the stupidest, greediest, worst attitude I could imagine, but apparently, that's how people's minds often work. I prefer to base my decisions on how much *I* want a product, and how much *I'm* willing to pay for it. I guess people don't realize that it's possible to conclude that something is overpriced, and simply refuse to buy it.

I thought the PS3 was a good deal at $600.. It was certainly no more expensive than a 360 + HD-DVD add-on. There were plenty of here who didn't agree with me.. Or maybe they did agree with me, but still felt $600 was too expensive. They didn't buy it. PROPS TO THEM. Better to have a clue rather than just buy it and then whine about price drops.

Anyway, I'd expect Sony to drop the price twice... Either in the form of outright price drops, or new model introductions. I think we'll definitely have $299 PS3's available by Christmas 2009. I also think there will be some kind of pricecut or something between now and then to stir up sales once the blu-ray stuff picks up.

But sony has to take a price cut if the other 2 do or they will be once again known for the most expensive system and with sales slow as is then it only makes sense they will.
Microsoft has only had 1 true price cut on the 360 so its a safe bet they milked the holidays with its killer game lineup and will drop the price soon to get momentum going into E3. But if the core and the wii go $199.00 sony will be hard pressed pushing the ps3 at $400.00-$500.00 bones. You would still be able to own a wii60 for the single price of 1 ps3 and what kid wouldn't rather have a wii60 instead of a ps3. Sony cant afford to allow that to happen. If they dont take a price cut it will be solely based on what the hd market is doing and not the video game market.

The core is worthless. I mean, people buy it.. but ... it's a waste of time...and ironically, it's a waste of money. It's funny that I should say that, because it's probably the model that would best suit me.. I don't care about downloaded XboxLive content or playing online with a 360. I'd want a 360 just to play single-player games or the single-player modes of games. However, I'm not a typical 360 player. The typical 360 player--especially if you listen to MS--uses XBL and buys a lot of games, and uses the 360's features. They're not going to be well-served by the Core/Arcade.

If they can convince the public that the Core is a viable "casual" alternative to the Wii, they will do well.. but I don't see them dethroning the Wii in that regard. Wii Fitness is a big indicator to me that Nintendo knows what they are doing. They know how to follow-up, and innovate. Halo3 is a good indicator to me that MS knows how to market and not really innovate. However, they are bringing Ikaruga to XBL (if not already?) and I can only commend them for that.

Claxiux

01-10-2008, 04:38 AM

segaman1977

01-10-2008, 04:58 AM

I'm sorry, but the biggest boost to ps2 sales started 4th year, and by that time, standalone dvd players were beyond mainstream. Now I'm sure at the PS2s launch, the 70-80% of the first year owners used its dvd playback capabilities but that is as far as I can stretch it. Both Sony and Microsoft is loosing money on their systems, but the 360 core has the most potential to reach $199. Flash memory is so cheap now and Microsoft will save a fortune when the switch to the new processor die. DVD-ROM drive assemblies can be produced for $8.00 now. Even though I can still see the 360 core losing money at $199, they would only be losing $20-$30 dollars versus hundreds of dollars if Sony tries to compete per system. I think Microsoft would be smart to only drop the core's price this year and leave the other skus the way they are. This would prevent the idea of desperation that Sony would have to endure if they drop also, only because of having two versions. I really don't think a PS3 drop nor a 360 drop would effect Wii sales at all.

MicroNut

01-10-2008, 07:23 AM

*deleted* posted in wrong thread

Desolationstorm

01-10-2008, 08:59 AM

MS will not be $199.. At least, not with a hard drive. They are still losing money on hardware, and AFAIK, their $279 "arcade" model is the least profitable.

Certainly, component prices will go down, and they will be able to trim costs. However, don't forget that the current prices are $279, $349, and $449.. The only one that has a shot at being $199 is the Arcade model, and we all know that's a waste of time.. You need a memory card for savegames, you have no space for downloads or updates (or patches *cough*).. And it doesn't come with a lot of nice perks, like the wireless gamepads.

You are refering to the core, the arcade bundle comes with a memory card and a wireless remote and hdmi output. If you want a 360 and dont have $350 to blow up front its a not a bad deal to pick up. You can always spend the $100 down the road to get a harddrive so in the end you spend an extra $30. Where the arcade bundle suffers is the lack of the two games that come with pro and elite and I beleive component output(dont quote me on that one).

I would be shocked if anyone gives a crap about E3. Last year's was pretty pathetic. Lots of companies concluded it was a waste of time. Even if other companies thought it was worthwhile, the likely result will be that less companies attend it this year.

I thought the PS3 was a good deal at $600.. It was certainly no more expensive than a 360 + HD-DVD add-on. There were plenty of here who didn't agree with me.. Or maybe they did agree with me, but still felt $600 was too expensive. They didn't buy it. PROPS TO THEM. Better to have a clue rather than just buy it and then whine about price drops.

I dont think E3 will be as bad as it was last year I beleive I heard they were working to correct one of the biggest problems from last year. That being that it was spread all over the damn place and I think they were working on it being focused at one place like at previous events just still being closed to "I live with my Mom and work at best buy kid". I agree with you at $600 for what you were getting it was a good deal, but it couldnt be judged like that because its a game machine poeple still view it as a game machine and dont want to spend $600 on it. The average consumer isnt gonna compair what they get for the price, just the price of the machine.

Anyway, I'd expect Sony to drop the price twice... Either in the form of outright price drops, or new model introductions. I think we'll definitely have $299 PS3's available by Christmas 2009. I also think there will be some kind of pricecut or something between now and then to stir up sales once the blu-ray stuff picks up.

I dont think theres a doubt that sony will cut the price. Its pretty obivious that microsoft will cut the price in the coming months if the ps3 continues to outsell it worldwide. They dont want to see to much of that lead deminish in 08. Then I beleive Sony and Nintendo will follow suit. The arcade I could see easily going to $250 or even lower just like I could see the pro going to $300 and the elite to $350. I doubt Microsoft would cut it much lower but it all depends on how much of their lead they are losing to sony in the coming months. If sony sells 60,000 more every week of this year they would still be behind so who knows what will happen. Though I could easily see nintendo cutting the wii to $200 if the arcade gets even closer to the price or its stops being sold out(for the most part). As for sony I dont know how eager they will be to cut the price to $299. Seeing as how blueray has basicly won they only need to focus on the gaming part now, its not just about getting more bluray players out there. I could see them cutting the 40 gig to $350 and maybe bundle a game with it. Or leaving it at $400 and bundle a game or two.

The core is worthless. I mean, people buy it.. but ... it's a waste of time...and ironically, it's a waste of money. It's funny that I should say that, because it's probably the model that would best suit me.. I don't care about downloaded XboxLive content or playing online with a 360. I'd want a 360 just to play single-player games or the single-player modes of games. However, I'm not a typical 360 player. The typical 360 player--especially if you listen to MS--uses XBL and buys a lot of games, and uses the 360's features. They're not going to be well-served by the Core/Arcade.

If they can convince the public that the Core is a viable "casual" alternative to the Wii, they will do well.. but I don't see them dethroning the Wii in that regard. Wii Fitness is a big indicator to me that Nintendo knows what they are doing. They know how to follow-up, and innovate. Halo3 is a good indicator to me that MS knows how to market and not really innovate. However, they are bringing Ikaruga to XBL (if not already?) and I can only commend them for that.

Like I said before the core is dead its the arcade and it is very much taliored to go after the casual gamer. They give them that live arcade game, the memory card and the wireless controller. They cut component but how many casuals really care about that? The core was worthless there wasnt a point because the $100 differnce between the bundles originally meant no harddrive or wireless remote and having to atleast spend what $30 on a memory card? I dont know how much they cost.

Wii fitness has me interested to see the price point and what the demo holds in it. Some of them seem cool so I could throw some money at it. Theres one thing though this thing is gonna sell like crazy to wii owners. I dont see the wii having any touble this year. Wii fit will make even more casuals buy a wii and Brawl will get hardcore players to put down the money for a wii also. Thats a pretty big one two punch. Though 08 is still the year for sony even if they can deliver half of what they have they are still bound to have a crazy year and get close to the 360 maybe pass it if FFXIII comes out in japan.

bnolsen

01-10-2008, 12:26 PM

50% of households having HDTVs by the end of the year!?!?

AHAHAHA, that was very funny...

In the US with the analog signals going away by february 2009 this could actually be a reality. Keep your old TV and buy an expensive DVB tuner or for a little bit more get a real digital TV?

daps83777

01-10-2008, 03:15 PM

In the US with the analog signals going away by february 2009 this could actually be a reality. Keep your old TV and buy an expensive DVB tuner or for a little bit more get a real digital TV?

in the USA they are releasing box top hd converters for sdtv's. there are a couple out. they range from $50-$100 from what i can tell. the US government is giving out coupons for $40 towards these, two coupons per household. they plan on giving out over 33 million of these coupons this year.

so spend $10-$50 over hundreds or thousands? yeah i think alot of people would rather go with the cheaper solution.