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Sega thinks a price cut would do Sony good, also

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]

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Reader Comments

(Page 1)

1. And which developer would not want to see a price-cut? A price-cut means more systems will sell, which also means the potential for the developer to sell more games regardless how much of a loss Sony takes.

I am all for a price-cut if it makes sense to do so. Right now it is unclear if Microsoft will make a price-cut this holiday. If they do then Sony will be forced into making a price-cut in order to stay competitive. I am not sure if Sony is still subsidizing each unit, or making a small profit. Either way, they will cut the price when it makes the most sense for the business.

Since all of these developers want to see the cost of the hardware drop, are they willing to help subsidize the cost of the hardware? NO... so they should just worry about making excellent games that will sell more units at the current price.

my two cents

Posted at 2:18PM on Jul 2nd 2007 by ShadowHawk01

2. Problem for Sony is, people are basically expecting a price cut now, and likely won't buy until one happens. Even with great software, a lot of people are still going to be saying "well, they are going to knock the price down soon, so I'll wait for that..."

Posted at 2:52PM on Jul 2nd 2007 by mccomber

3. I don't think there will be one until the 360 gets one. To me, the price point is the same as a 360 plus and HD DVD drive except the PS3 has a bigger HD and Wifi.
The 360 actually set the market price, Sony is competing at the same price.

Posted at 2:57PM on Jul 2nd 2007 by Matt B

4. @mccomber You make a good point, and that's exactly what I'm doing especially since all the good games are on the horizon and nothing out yet is worth playing really. Actually, the temptation to buy one to play upscaled PS2 games is more appealing right now, which is kind of sad.

Posted at 3:07PM on Jul 2nd 2007 by Fartbox 9000

5. I don't Sony needs any advise from Sega...Dreamcast!

Posted at 3:15PM on Jul 2nd 2007 by dynamicD

6. IMO, they should go ahead announce the price drop at E3. I mean this "rumor" has done enough damage to the potential sales of the PS3 because everybody keeps talking about a price drop. When even Howard Stringer talks about a possible price cut, you create this mistrust in potential PS3 buyers that don't want to get burned on the price by not just holding out for the price cut. Get it out of the way and stop making it a focal point for not buying the system. Then follow through with the release of first party games (cause third party companies are shafting PS3 left and right). In the meantime, PUSH the fact that PS3 is mostly backwards compatible (and keep fixing those games that are not) with current PS2 and PS1 games. People want value for purchases and if they know they have a library of old games that they spent money on that will work in a new machines, they are less likely to "jump ship". Not everyone is a hardcore gamer and want to buy two next gen systems or come looking on these sites for gamer answers on whats the hottest games and who is getting what in 6-12 months from now. Most people bought the Wii on the fact that everyone was raving about it, not whether the next Mario game or GTA was coming out for it in the near future.

Plus since they made it a Trojan Horse, market the hell out of it as a valid Upconvert DVD and Blu Ray player for high def systems. None of the commercials on TV touch this fact ever.

Posted at 3:17PM on Jul 2nd 2007 by RPGJock

7. RPGJock

QFT

Posted at 3:37PM on Jul 2nd 2007 by Chameleon

8. of course it would do good, for 3rd party developers, but not gonna help sony if they are losing $500 a unit. It would be nice if there was a price drop, because I am tired of devs saying PS3 doesnt have a big enough install base, when really PS3 has been selling faster then PS2 and no devs said it about PS2.

Posted at 4:00PM on Jul 2nd 2007 by sirpilf

9. @Matt B
The problem though is that most people still don't really care to get into the HD movie war so they don't see it as sony competing at the same price, just that they are more expensive.
As far as price cuts I've heard a million different scenarios, some say sony will cut prices at E3 to get the headline coverage, some say xbox won't cut prices till sony does, others say xbox will beat them to it. All I'm fairly sure of is that whenever one concolse drops price the other console will drop the same amount or more within a month.

Posted at 4:40PM on Jul 2nd 2007 by BlackBeltJones

10. Remember Nintendo isn't losing money on the Wii right now. So when Sony and Microsoft cut their prices, Nintendo will too. Making the Wii $200 or even $150. Price is the main thing, everything costs more now. I don't have any Next Gen consoles yet b/c of price, but the Wii is what I will aim for if the price war starts.

Posted at 5:01PM on Jul 2nd 2007 by Jammer

11. @11
IMO (again), the best way to trip up the Wii is to booster the PS2. The system is still a seller and is cheaper to make. If the PS3 is suppose to be the system that will be around for ten years, let the PS2 be the quick fix for the three year market that the Wii is banking on. Heck, develop a functional waggle peripheral that you can use on the PS2 and then market that. Again, people will have their existing library and the PS2 will have an additional 3 year lifecycle with developers doing ports to both PS2 and Wii machines. Heck, with their current problem with battery life in a rumble Sixaxis, a controller that would work for a PS3 and a PS2 that had the waggle capabilities and rumble would be the killer peripheral that could turn the system wars around.

Posted at 5:25PM on Jul 2nd 2007 by RPGJock

12. QFT?

What does QFT mean?

I thought I was down with all the msn lingo but I guess not.

Posted at 5:41PM on Jul 2nd 2007 by Andy

13. QFT = Quoted for Truth .. in other words, they agree.

Posted at 5:52PM on Jul 2nd 2007 by Andir3.0

14. QFT = Quoted for Truth .. in other words, they agree.

Posted at 5:53PM on Jul 2nd 2007 by Andir3.0

15. @16

You do realize they don't block swearing on this site. I just hope people realize swearing makes you sound uneducated.

In other news: Did anyone celebrate Canada day yesterday? (July 1st)

I did.

Posted at 6:07PM on Jul 2nd 2007 by Andy

16. Andy: Celebrating Canada day makes you sound uneducated.
Just kidding

When the price drop is announced it needs to be substantial. $50 is not going to do it. $100 will make a better story.

Posted at 6:39PM on Jul 2nd 2007 by acedoh

17. If I was in charge of Sony, I'd knockdown the price the last day of E3 by about $50 USD, to generate interest in sales and blur the line between the PS3 and the 360 Elite. MS would then probably plan on reacting around the holiday season. Then right after Thanksgiving, cut the price another $50 -$75 USD, to try to gain a foothold on the end of 4Q, while confusing MS with ANOTHER price cut - and make them seem to either react too quickly (and therefore appear to be a market follower and not leader) OR react too slowly (and therefore appear to have no interest in holiday consumer sales). Being bolstered by the avalanche of games coming out (assuming there are no delays in development - which COULD happen!), the PS3 could easily Grinch MS in North America. Although right now, the Wii will still lead by Chistmas - there is no way anyone could beat that price point yet - Christmas 08 will be the telling season for Nintendo. (Although this could change if nintendo released a 'normal' controller and enticed devs to make some ORIGINAL DECENT games... Doubt if they would ever do it, though...)

Posted at 8:55PM on Jul 2nd 2007 by Consolcwby

18. Celebrating Canada day makes you sound uneducated.

I see what you mean. I drank so much I think I lost 10% of my braincells so technically it makes me a little less educated.

Wow Consolcwby you really though that out. Sony has the best marketing team hands down. They took a expensive console and sold almost 2 million in a slow season. I love the playb3yond.com commercials. Too bad I have never seen them on tv. They would turn heads.

Posted at 11:46PM on Jul 2nd 2007 by Andy

19. Sega thinks a price cut will move more PS3's? Who's the Donald Trump-like financial analyst behind that brilliant conclusion?

In other news, sky found to be blue; water, wet.

Posted at 11:40AM on Jul 3rd 2007 by Popfrogs

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