PS3 Fanboy

The PlayStation 3 price rollercoaster reaches another peak today as Game Informer puts the rumour out there that a new 40GB SKU is on the cards. The price? $399. We've also heard ourselves that this has been in the planning stages for a number of months. When asked for confirmation, Dave Karraker stonewalled us with the following statement: "We won't be making any further announcements regarding our PS3 model hardware strategy in North America until the 60GB model is exhausted and market conditions are evaluated."

It's clear, then, that we won't be seeing any new price drops or SKUs hit the market until the 60GB PS3s are sold out. Once that happens, as Pachter said, we'll see the 80GB system drop down to the price of $499. If not, we'll see a new 40GB SKU come in at a price of $399. There's no reason why both of these things couldn't happen, but we're not convinced that's the case.

Since the rollercoaster started, we've been saying that the problem Sony is facing is that people can't afford the PS3, not that they won't buy it. A $399 ticket to the PS3 party would be excellent, especially if it were to start before the Christmas buzz hits. However, all this price craziness is making things confusing for potential buyers who keep up to date with PS3 news. Once the mainstream have bought out all of the 60GB models (All 2 to 3 million of them; It could take a while) we'll see something happen.

MaxConsole.net is reporting that they have received news of a new bundle for the European region. The "PlayStation Starter Pack" will allegedly contain a 60GB PS3, Resistance: Fall of Man, Motorstorm and two controllers for the "no-changes-there" price of €600. Those hoping for a price drop may be disappointed. Technically. Though if you think about it, you're essentially getting the 60GB and controller for €430, after deducting the price of the games and extra controllers.

Sounds like an ok deal to us, though it doesn't help the people who just can't afford that sort of money. It might push a few fencesitters over the edge, though. We'll keep you updated with SCEE's planned announcements as and when they happen. Price information aside, we're hoping for some juicy PSN news. We've heard rumblings.

We know an announcement is coming from SCEE this Thursday that is "related to the US price cut", but SmartHouse News claim that they already have the scoop. Michael Ephraim, Managing Director of Sony Computer Entertainment Australia has reportedly confirmed that PAL regions will be seeing a price cut of "as much as 17%".

While this is potentially great news, and 17% would bring the PS3 down to a much friendlier price of £350 in the UK (making it the cheapest Blu Ray player available), we're not going to hold our collective breath. One way or the other, we'll know on Thursday.

[Via NeoGAF]

It already looks like the price drop for the PlayStation 3 is having an effect on sales. After official confirmation of the price drop, sales at Amazon.com for the 60GB PS3 have spiked by 2800% and have overtaken the Wii and Guitar Hero: Rock the 80s as the best selling item in the Video Game category.

While it's hard to judge the success of the price cut in only one day, it's interesting to see how many people are snapping up the new $499 PS3. A price cut of $100 is not insignificant but the PS3 is still the most expensive console, and industry watchers were curious to see just how many people would be moved to purchase the console after a 'mere' 17% price drop.

Judging from the early evidence though, the answer is 'a lot.'

Has the price cut already been put into effect? Potentially, yes. One of our readers has let us know that he was able to get his hands on a 60GB PS3 for no more than $499.99 at a Target today. In our attempts to verify this we called the store he bought it from. They confirmed that the 60GB PS3 was, indeed, in the shop's system at the price of $499.99. Whether this is an error on the individual shop's part, with the price drop being put into effect early, we weren't sure.

We are currently in the process of calling more stores nationwide, to see how isolated this event really is. We will update this post as and when we get more information. If true, then this is an excellent start for what promises to be an excellent E3. Already Microsoft's keynote is overshadowed by Killzone 2. A pricedrop by Sony before the event even starts only adds to the pressure.

[UPDATE 1] A Kansas Target has the 60GB PS3 in its computer at $599

[UPDATE 2] Another tipster has told us that today they sold two at Circuit City at $499. Confused, the manager called it in and got a confirmation that it was correct. We are in the process of verifying this.

[UPDATE 3] A Target store in Rancho Cucamonga in California has confirmed that the 60GB PS3 is in their system for $499. It looks like there's no pattern to which stores are and aren't offering the price cut.

[Thanks Nathan and Alexander!]

Over at Cheap Ass Gamer there is a forum regular by the name of Speedy1961 who regularly posts early pre-release leaks of ads from Circuity City, Target and Best Buy. He's been doing it a long time and appears to be extremely reliable. And he just released the information on the Circuit City ad for the week following E3 and guess what appears? The oft rumored 100 dollar price cut on the PS3.

People have been calling for a price cut since immediately after last year's E3 and their voices have reached a deafening crescendo recently, so it is by no means a big surprise that Sony would drop the price. Unfortunately, this is still going to be filed under the 'Rumor' category because of the lack of hard evidence. Some supposed scans have shown up on the net, but they're a bit dubious. Also there is confusion over whether or not this is a permanent price cut. It seems absolutely insane that it wouldn't be; a temporary price cut (one week) would just aggravate things. We'll find out next week for sure though!

While one should take console advice with a grain of salt when it comes from Sega (we loved your systems, though!), they aren't alone in their opinion for a price cut of the PS3. Corporate director for Sega, Masanao Maeda, says that "superior marketing and pricing strategy will be the key for Sony." He makes this observation knowing the software is tough to differentiate between itself and the 360 and taking into account the recognizability of the brand. It doesn't matter if you know the brand if you can't afford it, right?

We don't know how much longer we can dance this price slashing dance. So many people have demanded it, Howard Stringer has promised it, others say it's fine, but it keeps coming up as the number one issue. In a few months, we've got to keep ourselves thinking, we will have a heaping pile of quality games to play and the knowledge there will be a price cut by the end of the year. Whether an announcement will be made at E3 or the Tokyo Game Show, we aren't certain, but we know it'll pop up. What will there be to complain about then? Seriously, we'd like you guys to think what the next "big problem" will be once games and price aren't an issue.

[via CVG]

CEO's can sometimes say the darndest things. The always outspoken CEO of Ubisoft, Yves Guillemot, spoke with Gamesindustry.biz about the cost of the PS3, which clearly differed from his earlier views. Speaking about Sony directly, he says, " [they] sold a machine that is actually expensive to build at the right price for consumers. It's just that if we want more consumers, we'll have to have a price that will make more people come in." Well Sony has at least one CEO in their corner in mild agreement about the launch price of the PS3, except it just further exemplifies a growing demand for a price cut now. The interviewer inquired about the possibility of a price cut before the all-important holiday season, to which Guillemot of course, agreed would be nice. "For publishers, we want as many machines sold as possible, so for us the lower the price the better," he says. Previously, analysts have estimated a PS3 price cut could already be on the way. Time will tell.

[Via Joystiq]

If you want someone to take machete in hand and slice through the vine-ridden jungle of PR spin and get to the heart of darkness (took about ten minutes to hack our own way to that dynamite metaphor), it would be Sony CEO Howard Stringer. He says that there is no question consumers want a price drop on the PlayStation 3 and he's currently looking into ways to deliver on those demands. How much the console would drop in price is the big question and what he and his pals at Sony are trying to figure out.

Stringer is pretty certain he will have an answer for the public by Christmas, but took the liberty to compare sales with their most current console to the beginning years of the PlayStation Originale and the PlayStation Deux. We're making up names. Stringer reassured the Sony loyalists that sales are indeed slow, but mimic the previous consoles' trends.

He also gave his two cents about the Wii. Take this as you will, Nintendo crowd: "I would be the first to say to you that Nintendo Wii has been a successful enterprise and a very good business model compared to ours... Because it's cheaper." Adding later that, when asked if the system is more fun or creative than the competition, "No, no. Fun is in the eye of the experiencer..." All in all, we'll have news of a price cut soon and we'll find out if the "cheaper" factor really is a major player in this war of consoles.

Videogame analyst superstar Michael Pachter expects there to be a price cut for the PlayStation 3 by the end of the year, and says that it might even come as early as this summer. GI.biz quotes Pachter,

"It is possible that Sony's cost of production for the PS3 has declined to the point that the company may consider a hardware price cut some time this summer, and we may see a price cut for the PS2 before the holidays."

As long as Sony's manufacturing costs have dropped to a reasonable rate, I'd heartily encourage Sony to drop the price of the PS3 as soon as possible. It's very clear that people desperately WANT a PS3, but just can't afford it. Dropping it to $500US and then marketing the hell out of the price drop would do wonders for their sales. Just look at what a 30 dollar price drop did for the PSP.

Amazon.co.uk seem to enjoy dropping Sony's prices, even after an official price cut. Well they've done it again. For this week only you can order a 60GB PS3 from Amazon.co.uk for only £389.99. That's a saving of 35 quid. Very nice, indeed!

Does this price cut fall below your PFPT (Personal Financial Pain Threshold)? £390 does feel a lot less than £425. You've got to love Amazon for giving us a clear time limit before the deal ends. If that doesn't push the impulse buyers into parting with their cash, I don't know what will. Will you be taking advantage of the offer? Let us know.


[Via PS3 Forums]