no PS3 price cut... Sony, why?

[Simalacrum]

Before mods lock this with immediate effect from the title THIS IS NOT A FLAME THREAD!

Right, as everyone knows at this point Sony have been stalwartly refusing to drop the price of the PS3 despite everyone around them agreeing that they need to, especially due to the recession.

Now, my question is: does anyone have any theories about why Sony are so reluctant to drop the price of the PS3? I guess its because they won't make any profits from each PS3 if they lower the price. They have made efforts I guess: the PS2's price has dropped, and they've halved the price for developer kits to encourage developers to make games for the console. Oh wells, we'll see if they announce something at TGS I guess.

anyways, please give your opinion. No flaming! thanks

 

[pantsoffdanceoff]

Because the PS3 is expensive to make and if they charge less than than cost to make it then they will lose money, which is bad for a company.

 

[GodsOneMistake]

How much is it going for now $400?

 

[imburke]

its because of the ps33 slim, sony didnt announce it at E3 because they still hava so many units of the 80 and 160 gig still on store shelves, probly looking at an announcement in september-ish....although sony wont say anything, i work at a video game retailer, and my boss and our sony rep were having a small bet to see if they would announce it lol

 

[LaughingTarget]

1. They're still losing money on each sale.
2. The Yen has gotten ridiculously strong against the Dollar, meaning they're losing even more money per sale.
3. They lost money as a company last year, combined with years of major cash flow problems, Sony cannot afford to drop the price.

Basically, Sony lacks the resources to just eat through losses and the weakening of US currency is blocking Sony's ability to cut prices. If anything, with all the money printing going on this year, Sony is going to have to INCREASE the price of the PS3 to avoid hemorrhaging even more cash.

 

[Jumplion]

There's no real "theory" about it, the PS3 is selling at a lose though by how much now isn't known I suppose. They're trying alot to both justify the price with all the games coming out both this year and next year (as shown by alot of people saying "Man, this is making me wish I had a PS3!") and trying to lower the price which is one of the reasons why the cut backwards compatibility.

 

[Ashbax]

Well, first off, Becuase sony are kinda dickheads,
Second, Becuase they want to keep making money like any smart company,
and finally, becuase they are releasing the Ps3 Slim, which is pretty much the same thing the Ps2 slim was, \
A pointlessly smaller version of the original console. FOR NO GODDAMN REASON.

/flame.

 

[crazyjackal]

They are in profit at the current price and considering the losses on the PS3, they need to sell in profit as opposed to sell extra units at more loss.

Considering the lineup this year, if they can lower manufacturing costs, they may lower the price (as long as they stay in profit) for Christmas so that they can sell units and games. However, if this is planned, they wouldn't announce a price drop now at E3 because that would just be bad business.

If the rumors of the PS3 slim are true, they will try to release that as soon as possible. Not because it's cool but because it lowers component costs. They could possibly sell the slim at the PS3 current price (for more profit) and drop the PS3 to a slightly marginal profit range.

 

[HyenaThePirate]

Because the PS3 is expensive to make and if they charge less than than cost to make it then they will lose money, which is bad for a company.

Hey Buddy.. you might be the last to know this but I figure one of us better clue you in..

Sony has been losing money on each and every unit since they released the console 2 years ago.
In fact, I'm not even certain if they have seen a single dollar of actual PROFIT from the PS3.. EVER.
But what they are banking on apparently is a 10 year console cycle and long term consumer commitment and a resurging American dollar and economy. The problem is compounded by Sony's other divisions having done so piss poorly over the years, relying ON the gaming division's massive income dollars that they essentially took such good care of their prize stallion that they let the rest of the farm go to hell in a handbasket and now that they want some hay for their pony there isn't any and creditors are now coming round knocking on the door.

1. They're still losing money on each sale.
2. The Yen has gotten ridiculously strong against the Dollar, meaning they're losing even more money per sale.
3. They lost money as a company last year, combined with years of major cash flow problems, Sony cannot afford to drop the price.

Basically, Sony lacks the resources to just eat through losses and the weakening of US currency is blocking Sony's ability to cut prices. If anything, with all the money printing going on this year, Sony is going to have to INCREASE the price of the PS3 to avoid hemorrhaging even more cash.

Listen to this guy, he's put it exactly the way A Sony Rep would put it to you if you were both sitting in a bar drinking Saki and he didnt "give a damn about being on the record no more.."

 

[imburke]

i have a ps3 and a 360, i play my 360 a lot more, but the ps3 is built like a brick, i mean, if the 360 ran the way the ps3 does ( pound for pound the 360 performs better), then 360 owners wouldnt have the rrod problem or the circular scratches problem. Sony did a really good job on the hardware, and the games come out cheaper then on the 360, so, you would make up the difference after only a short while. aswell, think about the controllers, ps controller, all inclusive, 54.99 canadaian, and you get the controller and rechargable battery, plus the recharge cord comes with the system. on the 360 hand, 59.99 for the controller, and 29.99 for a battery and recharge cable. then you have wireless, built into the ps3, while its 99.99 on the 360, you spend more on the 360, people just dont realise it because its after the initial system purchase, when you get a ps3, thats all you need, such is not the case with the 360, but i digress, i still play my 360 a lot more, i hate that ps3 controller and its marshmallow-y shoulder buttons lol

 

[Simalacrum]

Well, first off, Becuase sony are kinda dickheads,
Second, Becuase they want to keep making money like any smart company,
and finally, becuase they are releasing the Ps3 Slim, which is pretty much the same thing the Ps2 slim was, \
A pointlessly smaller version of the original console. FOR NO GODDAMN REASON.

/flame.

ehem.... no flaming. I shall now proceed to shun you.

SHHHHHUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUNNNNNNNNN!

 

[Souplex]

A PS3 originally cost $800ish to produce and was sold for $600. I don't think they have managed to lower their production costs yet, which would mean that at $400 Sony would lose $400ish with every sale. Another price cut and they might go broke.

 

[imburke]

the only company to officially make profit off of their systems is usually nintendo, because they use old architecture, i believe sony, just this year, began turning a profit from the ps2

 

[Ashbax]

Well, first off, Becuase sony are kinda dickheads,
Second, Becuase they want to keep making money like any smart company,
and finally, becuase they are releasing the Ps3 Slim, which is pretty much the same thing the Ps2 slim was, \
A pointlessly smaller version of the original console. FOR NO GODDAMN REASON.

/flame.

ehem.... no flaming. I shall now proceed to shun you.

SHHHHHUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUNNNNNNNNN!

/flame.

 

[Ashbax]

the only company to officially make profit off of their systems is usually nintendo, because they use old architecture, i believe sony, just this year, began turning a profit from the ps2

Yes...I preferred sony when they were making TV's.

 

[New Troll]

PS3s are finally starting to sell well. No need to lower the price again.

 

[Yoshi_egg80]

1. They're still losing money on each sale.
2. The Yen has gotten ridiculously strong against the Dollar, meaning they're losing even more money per sale.
3. They lost money as a company last year, combined with years of major cash flow problems, Sony cannot afford to drop the price.

Basically, Sony lacks the resources to just eat through losses and the weakening of US currency is blocking Sony's ability to cut prices. If anything, with all the money printing going on this year, Sony is going to have to INCREASE the price of the PS3 to avoid hemorrhaging even more cash.

You said it better than I could so bravo.

 

[HyenaThePirate]

i have a ps3 and a 360, i play my 360 a lot more, but the ps3 is built like a brick, i mean, if the 360 ran the way the ps3 does ( pound for pound the 360 performs better), then 360 owners wouldnt have the rrod problem or the circular scratches problem. Sony did a really good job on the hardware, and the games come out cheaper then on the 360, so, you would make up the difference after only a short while. aswell, think about the controllers, ps controller, all inclusive, 54.99 canadaian, and you get the controller and rechargable battery, plus the recharge cord comes with the system. on the 360 hand, 59.99 for the controller, and 29.99 for a battery and recharge cable. then you have wireless, built into the ps3, while its 99.99 on the 360, you spend more on the 360, people just dont realise it because its after the initial system purchase, when you get a ps3, thats all you need, such is not the case with the 360, but i digress, i still play my 360 a lot more, i hate that ps3 controller and its marshmallow-y shoulder buttons lol

This made no sense... are you high?

Back on topic...

They are in profit at the current price and considering the losses on the PS3, they need to sell in profit as opposed to sell extra units at more loss.

Really? Sony is making a profit off of the PS3? This is the first I've heard of this, can you show me where you saw this amazing information because I want to be the first one to email it to Sony so they can know too and then they can concentrate on other things like making an update to the firmware that LETS ME CHANGE MY PSN AVATAR TO SOMETHING CUSTOM THAT I WANT.. or.. CHANGE THE FONT ON THE DASHBOARD FROM THAT GOD AWFUL DERIVATIVE OF WHITE SO I CAN USE ANY BACKGROUND THEME I WANT AND STILL BE ABLE TO READ the Text enough to know if I'm selecting a DVD or signing IN. I really really really hate the fact that these two reasonably simple things to do are not doable at all on a system that keeps trying to compete with the Xbox360 and it's appreciation of a modding community in gamers like a big sister that wants to be cool like her younger sister, but refuses to take off her pants for anyone.
And honestly, it's this reluctance by Sony to give a little more freedom without putting up such a fuss that has kept the 360 competitive instead of being blown out of the water by a technologically superior system

 

[Ricky 49]

i don't know

they are also overpriceing the psp slide thing (psp 3000 i thinki its called)maybe they like the image of being the richman's console?.... i don't know

i certainly think the manufacureing costs of a ps3 is bigger than the 360/wii but i still think they could lower the price of it and make some profit just not a huge one per unit but overall it would make more money

 

[jamesworkshop]

the only company to officially make profit off of their systems is usually nintendo, because they use old architecture, i believe sony, just this year, began turning a profit from the ps2

Yes...I preferred sony when they were making TV's.

Nah Sony would have made massive profits from the PS2 120 million units its really the Games where the money is made who knows what the attach rate is but even 4 games is getting close to half a billion software units.
Even the original playstation hit over 100 million units so its quite astounding how badly the PS3 is doing