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Pachter: SCEA reluctant to announce 40GB due to 60GB supply

Signs are pointing to a November 2nd launch of the price (and feature) reduced 40GB PS3. However, where is the buzz? Why is there no official confirmation from SCEA? "These rolling announcements suggest to me that Sony has an inventory control problem, with too many unsold 60GB units out there, and they don't want to have to cut the price to clear them," Wedbush Morgan securities analyst Michael Pachter told

Certainly, it appears that 60GB machines are still in ample supply in spite of Sony's proclamation that the system is no longer being manufactured. Are the systems selling at an even slower rate than anticipated? Seemingly. However, what will happen when November 2nd rolls along, and 60GB systems are still in stock? Sony will have to "accept reality and bundle [the 60GB with] a game and an extra controller for USD 499.99, giving consumers some value for their money." However, in spite of a price drop, it appears that Pachter is not confident that a price drop will significantly increase sales for Sony's system. What price must the PS3 reach for it to appeal to the masses?

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1. Its not about the price, its about the games. Some of Sonys big hitters are due quite soon.

Thats when it'll appeal to the masses.

Posted at 4:35PM on Oct 15th 2007 by finelicker

2. I'm pretty sure this doesn't apply to everywhere, but here in Miami, every game store/ electronics store I go to and see PS3's, they're the 80GB version.

Posted at 4:38PM on Oct 15th 2007 by Justin

3. Well put, finelicker.

Posted at 4:50PM on Oct 15th 2007 by superfuntime

4. My dream is that they've seen the backlash against the loss of backwards compatibility and they're delaying the announcement so they can retool the system and pretend it was their plan to keep BC all along.

Yeah, probably not.

Posted at 4:56PM on Oct 15th 2007 by Bluebrake

5. i believe that it is definitely a combination of price and the amount of games... 500 dollar for a system.. eventhough i have to agree that xbox360+accessories to equal to PS3 would be more than 500 dollars... is just too much for a system (but i think this is where MS is really smart by pricing the system as a base core system and add accessories that cost a whole lot more than it is worth because people feel that at least they have AN OPTION to choose and 'pay later' for upgrades)... if Sony is able to drop the price for another 100 dollars (seem rather unlikely).. i think it will sell a lot better..
but having that said... the game selection is definitely not there... when i go to to see vids.. from just pure observation.. i would say that majority of the games that came/is coming out in the past recent months have been 360 games... rumors have been saying that 2008 is the year of PS3 with more games... i think for Sony's sake.. it better be the case... with the recent japanese developers to 360 and just reported that the 360 elite have been selling out in multiple stores.. now i dont kno if that is just part of the whole halo/lost odyssey craze or what .. if Sony dont try to recover in the next few months.. i think we'll see a dramatic change in Japan ... putting out SKU with more HD space is definitely not the answer to solve the problem...

be nice .. dont bash.. just constructive criticism is fine

Posted at 4:58PM on Oct 15th 2007 by Alex

6. still lists the 20Gb version as available...

I'm kinda hoping the 40Gb causes a price drop on the 20Gb so that it's less then 399... but... that's just wishful thinking considering that the 20Gb is priced higher then the 40Gb overseas. (Read it somewhere on these gaming blogs, sorry no reference.)

Posted at 5:00PM on Oct 15th 2007 by Skewed Perspective

7. in before trolls!

Posted at 5:05PM on Oct 15th 2007 by stephmhishot

8. AUGGHHH..... DANG IT!!!!

I just want to crack open the 60GB I bought.

Now I have to wait until November 2nd for a possible bundle/price reduction (yes... I know analysts think they know it all and are often wrong). Plus I'm a cheap S.O.B. so I just want the most bang for my buck on the PS3 :P

I'm thinking a lower price for the 60GB is easier to execute than creating an entirely new bundle.

Posted at 5:21PM on Oct 15th 2007 by Bad Mojo

9. For what it's worth... I've already made my decision to buy a PS3. I am simply waiting for the right deal to pull the trigger. I want the PS2 backwards compatibility so the 40GB isn't anything I'm interested in. I would be fine with the 60 or 80 model, but I do anticipate a price decrease and I'm waiting for that before the holidays. As soon as that happens, or a bundle is announced, I plan on making the jump. This was a difficult decision (PS3 over Xbox 360), but in the end I am making this decision not based on what I can get today, but down the road.

Posted at 5:23PM on Oct 15th 2007 by Darin

10. I've been seeing the PS3 drop on the Amazon video game ranking since the 40GB announcement. It's kind of a malicious circle since they won't announce the 40GB because of the 60GB, but the 60GB isn't being cleared out fast enough because people are waiting for the 40GB.

Advise your friends who don't have a PS2 to get one while they have the chance.

Posted at 5:25PM on Oct 15th 2007 by ruibing

11. i hope to see some here in my local market. Once the price goes down I am jumping on one.

Posted at 5:27PM on Oct 15th 2007 by robbyrob

12. Why does this matter?

If anything the 80GB should have been released once the 60GB was gone. The 40GB is a lower end model, the 60GB is the top end model.

I haven't seen a 60GB for a while now. I still see the odd 20GB.

Posted at 5:31PM on Oct 15th 2007 by Andy

13. Yeah it's a rock and hard place for them. They need to emphasize the difference in BC between the 60gb and the 40gb. That way people on the fence will go ahead and spend a little more to play PS2 games and those who don't care and want to save get the 40gb.

I'm thinking giant stickers on both boxes.

Posted at 5:45PM on Oct 15th 2007 by Popfrogs

14. Call me crazy, but if the 40GB PS3 comes around at the old PS2 price, $299.99, then all Ps3 units will move moreso this holiday season than at the $399.99 price point. The 60 GB units will move without having to bundle anything because the $299 price will grab attention to the whole PS3 line (which is why I think bringing the DS3 controllers out in '08 instead of this holiday season, when the 360 and Wii controllers rumble, is a big mistake). After the 60GBs go, move the 80GB into the $499 slot, add Spidy 3 and that's it. No game needed (Resistance should be the most $30 now. Selling a 1+ y/o best selling title at full retail is wrong).

....But Sony would NEEEEEEEEVVVER do that. I don't really care that I paid $600 for mine, all I want Sony to do is move units so then better games can come out.
See to me:

Cheaper hardware = Better software (online and offline), which leads to happy PS3 owners (and slightly higher electric bills).

Kaz, are you listening? I know what the system can do, it's well documentented-we need more games and fewer delays.

Posted at 6:36PM on Oct 15th 2007 by ptaylor7805

15. I know when I go into Best Buys and game stores, I still see piles of 60 gig PS3... At least in my part of the world (Southern California) you'd think the 80 gig never came out... all I see is a bunch of 60 gigs with maybe 1 or 2 80 gigs at best...

Perhaps the 80 gig campaign slightly backfired... The average consumer expects more stuff for more money, so maybe when the 80 gigs came out, people thought... Oh the $600 comes with a game, and is more expensive, so it probably has more features! Similar to expecting more features on the X-box 360 with the Elite model.

Personally, me and my friends did pick up the $600 model after the price drop when it became $500 cause we wanted to have the wiz-bang version of the PS3 with full hardware backward compatibility. Frankly in my opinion the current $500 model has more features... yeah I'm losing 20 gigs and doesn't have the free game, but hey I got the front ports and the hardware BC features.

Posted at 6:55PM on Oct 15th 2007 by comtar

16. ### What price must the PS3 reach for it to appeal to the masses?

I've said this before, 60 GB should be less than 400$, the 40 GB 350$ and the 20 GB 300$ sharp. anything else is doomed to fail(as it has been the case since last year)

Don't forget guys, there is the warranty which automatically adds 100(for a 2 year minimum) to the price. we're looking for, again, a console above 500$ before Tax; that is NOT good. Good games sell consoles but the price is the main driving force behind it. Ps3 has failed in this category so far.

Posted at 7:38PM on Oct 15th 2007 by john

17. @John:

When were $100 warranties made mandatory?

Also, you say $350 for the 40 gig, and say less than $400 for the 60 gig. Who in their right mind would buy the 40 gig for $350 dollars when they can get backwards compatibility, extra USB ports, an extra 20 GB, etc. for only $50 dollars more??

Your price point are way off.

Posted at 9:42PM on Oct 15th 2007 by Elsnerma

18. I agree with quite a few of the posts here. While price is certainly a deterrent, the biggest problem for the PS3 is the lack of games. It hasn't had it's Halo or Mario yet, and without them, sales will be poor.

You can think of them as the key to unlock a door and the actual act of opening a door. Without both it's going to be awful hard to get people to walk though.

Posted at 11:46PM on Oct 15th 2007 by prateeko

19. The lack of a large catalog of games is hurting the PS3, along with the MSRP. But once the big games come, the price will be less of a factor.

The lack of backward compatibility on the 40GB model is a major mistake.

If I were Sony, I'd also seriously considering adding Divx/Xvid compatibility in a firmware update for both the PS3 and the PSP. Users can already play Divx on the PS3 through Linux, so might as well generate positive buzz online by simply enabling the functionality natively.

Posted at 1:19AM on Oct 16th 2007 by The Jeremy

20. I just heard from my friend, that He'll be getting shipments of 30gig PS3's for $399can to his chain of Canadian stores end of November.

Posted at 9:51AM on Oct 16th 2007 by thaylinsgate

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