ABI Research: Consumers Unwilling To Pay PS3 Price?

[Zeus]

According to a report by ABI research, consumers may not be willing to pay the premium price set on the PS3 despite the inclusion of features such as Blu-Ray media playback.


According to an E3 summary report by analyst firm ABI Research, consumers may not be willing to pay the premium prime being asked by Sony for its upcoming PlayStation 3, despite its inclusion of a Blu-ray drive and other cutting edge technologies. The report calls Sony's pricing strategy risky, and one that could eventually undermine the company's stride for first place in the next-generation console market.

"Asking consumers to pay $500 to $600 for a game console, when most have yet to purchase an HDTV, will give many current PlayStation 2 owners reason to consider the competition," said Michael Wolf, principal analyst with ABI Research's broadband and multimedia research practice. "Sony has clearly hamstrung itself with a box that is expensive to manufacture, and these costs are driving a retail pricing strategy that places a high financial burden on the consumer."

During last week's E3 event in Los Angeles, Sony's Kaz Hirai defended the $499 and $599 dual price point for Sony's PlayStation 3 launch to financial website CNN Money, describing the pricing as "a good value for consumers."

ABI Research feels Nintendo had the best showing at E3, and that of the three companies introducing next-generation console hardware to the market, Nintendo is the “best positioned” to widen its gaming audience by attracting casual gamers with titles such as Wii Sports, a collection of sports games that take advantage of the Wii's unique remote, and WarioWare: Smooth Moves, the latest sequel in the company's microgame-based franchise.

The firm also states that Microsoft's unveiling of the Live Anywhere service ranked as the biggest announcement from the show.


News Source: <A href="http://www.gamasutra.com/php-bin/news_index.php?story=9336" target="_blank">Gamasutra.com</a>

[amptor]

I think that if people are willing to fork out $3.50/gal for gas and clog up the freeways on a Saturday, then they probably are willing to fork out up to a grand for a PS3.

[Crazycasem21]

I think that if people are willing to fork out $3.50/gal for gas and clog up the freeways on a Saturday, then they probably are willing to fork out up to a grand for a PS3.

Your damn right.

[cory149]

Agreed, and people seem to forget how the price drops a fair bit after manufacturing has gotten set up better (wrather than 1 plant in china) and new/lower priced components become available... the initial runs are darned expensive to get out there (and regardless of cost, many will see it as a MUST HAVE THE THING YESTERDAY type of an item, especially when you see how many japanese folks entirely skipped getting a 360).

[GodsMinion]

I agree with waiting due to price drops; however, tough luck to those people who won't have a ps3 system upon launch due to shortage. Plus, who cares how much a console costs if it gives you unlimited amounts of joy and happiness

[Reset]

ppl pay 3.50 for gas because they have no choice. they cant simply stop driving. I know for a fact ppl have put off trips do to gas prices. Of Course the price will drop. But will have Microsoft or Nintendo have won america by that time is the question. by the time ps3 reaches reason, Wii will be free.

[neoryu]

bla bla bla...

I'm gonna pay 600€
ABI haven't asked to me.

[bwi]

I think that if people are willing to fork out $3.50/gal for gas and clog up the freeways on a Saturday, then they probably are willing to fork out up to a grand for a PS3.


I wish we paid £3.50 a gallon instead of nearly £5

bri

[Crazycasem21]

Most don't have to drive and buy gas but they do. Mass transit, Greyhound and all that. Its all about where you are and what you have available. I could be wrong but I gave up driving. Too much overhead and stress.

[Reset]

u realize 3.50 ameican is not worth as much as 3.50 euro, also the minimum wage is higer there. U guys have techinichally higher gas prices (thats only because ur government taxes patrolium), but you make more money. Of course the cost of living is all realitive.

If everyone used mass transit, we would end up paying for the gas there also.
Its not like buses run on water. and besided washington D.C, Sanfransisco, New York and some other Metropolises are the only places that have subways. In most places mass transit will limit u severly. And even the great citys with great mass transit are still packed with gas eating cars buses and taxis.