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Consumer price ceiling may be causing PS3 sales slump

According to Tech Analyst Tim Bajarin (with Creative Strategies), people set a price ceiling of $399 for new electronic items and anything above that ceiling will not only get infested with rats (damned crawlspaces), but won't be able to sell in volume. They cite the iPhone as a suffrant of this concept as well as the PlayStation 3. No, suffrant isn't a word, but it should be. It's a new way of saying "one afflicted by suffering" or something. This price ceiling isn't end-all, that is, televisions and computers are exempt from the ceiling because those are "worth" the extra cash.

What we thought was interesting was the coupling of the $399 price ceiling and the rumored price drop of the PS3 to that sweet $399 mark. If that's what it takes to sell volumes, there might be more behind this analysis than meets the eye. Still, most people reading this site are exceptions to the rule -- we nabbed the PS3 before this price ceiling, but then again, we don't exactly constitute "volume" sales. Do you guys think PlayStation 3 sales will skyrocket if the price hits $399?

[via Joystiq]

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Reader Comments

(Page 1)

1. Of course!! If you look at the recent price drop after the E3 announcement having the price drop to 399 would only push for consumers to buy! Expecially if they did this during the holiday with solid games coming out like Uncharted, MGS4 in early 08! I believe if Sony would've marketed early on better then what they did they could've sold more then but its ok, I believe they'll make up ground this holiday!

Posted at 11:07AM on Sep 12th 2007 by Byron517

2. Keep in mind that Gamestop is also selling the 20 gig for 349.99!

Posted at 11:09AM on Sep 12th 2007 by Young Capwn

3. Are you kidding me? How many excuses is this site going to give for the PS3 being a complete bomb.

- It will take 5 years for the PS3 to max out it's potential, so they are doing bad.
- It's a complicated system to make games for, so they are doing bad.
- We just released and article stating the the algorithms for the system with the cell and GPU don't mesh well together, hence shitty games, thus they are doing bad
- People have a price ceiling so they won't buy anything over the ironic $399 price mark. But hey, they will buy TV's and computers. So they are doing bad.

C'mon. You are doing bad because the system blows. That is all!

Get a life PS3 Fanboys. You system sucks! Admit it and stop making excuses .

Posted at 11:13AM on Sep 12th 2007 by Stoli

4. Totally agree with 4. The Ipod sold a million at a record pace, and it was sold at under $400. Then the iPhone came out under 80 days ago, selling the majority of the $600 8g versions, and they beat the iPod in sales to one million.

Point of the story, Sony just wants more excuses for it's horrible machine sales. It doing bad because the system is horrible, unlike the iPhone. Not because of price ceilings, because THEY SUCK.

Here is the apple link to the proof that this price ceiling DOES NOT EXIST!

Posted at 11:24AM on Sep 12th 2007 by Stoli

5. Damn Stoli do you have nothing better to do than troll the PS3fanboy site. How sad. The PS2 still outsells your piece of shit xbox. I know your mad because you bought an inferior system that was hastily put together in order to try and beat the PS3's launch, but give it a break, and don't take it out on us hear. If you want to bitch about the PS3 then go do it on Xboxfanboy. Duce Bag.

Posted at 11:28AM on Sep 12th 2007 by SimplyB

6. 'suffrant' ...

i like it ... i really really like it.

Posted at 11:30AM on Sep 12th 2007 by Chameleon

7. This encourages me to go out and get one. I bought a Wii but have been vacillating on the "Big Boy" console since the first price drop. I need this price point to get my wife to okay the purchase. I have been waiting for some time to get a PS3. I want one but I want to play a few of the 360s games. I'm a confused consumer with limited resources, both money and time.
What would be nice is the Blue-Ray remote bundled in as well. That would be sweet.

Posted at 11:31AM on Sep 12th 2007 by Larry

8. i bet stoli work in a governemental place and his web browser block "games" site and since xbox360fanboy is under that category and ps3fanboy isnt he spend his time here
suck to be a 360 troll :p

Posted at 11:32AM on Sep 12th 2007 by coplice

9. @Stoli

- The comment on it taking 7 years was about it taking that long for the games to take full advantage of the hardware on the PS3. Remember the PS2? God of War I and II which looked so great only came after so many years. They simply expect the same for the PS3. They do not mean that it will take that many years for games or graphics to get good anything, they just mean graphically they could get even better.
- The PS2 was also difficult to program for due to a different architecture, but developers got around it. As long as developers actually work on the system, instead of being lazy and expect easy ports, like EA and Valve, then they can make some great looking games. Most of the EA sports game don't even make use of the SPEs, so instead they simply use the Cell processor like a dual threaded single core. The 360 has been around longer, so every game that is for both systems usually started first on the 360, which is why they usually make a lazy port to PS3 to make a quick buck. This is why exclusives for the PS3 always looks so good, because the developers actually take the time to develop on the PS3. And once they do it once, it will be easy to do it again. So expect more games to hit the shelves more frequently as we go exponentially.
-No idea what article you are talking about. You might want to include a link to your credible source. The only thing I know is that the reason cross platforms don't work as well on the PS3 is because the developers didn't use the SPEs, so obviously the PPE can't compete with a tri core without the SPEs.
-The price ceiling goes for game consoles more specifically. Not everyone is aware that the PS3 is also a blu ray player, so they see it as one expensive game console. No game console has ever cost $499-599 before. But it seems like Sony's new campaign for the PS3 as an entertainment center is helping. Microsoft is doing the same thing with the new 360 SKUs. The 360 is more expensive when you add a 120GB hard drive and HD-DVD addon to the new HDMI version with the revised heatsinks. Sony simply gave you the complete bundle. It will take some time before people get used to it.

Seriously, if you go around making these kind of remarks that are so blatantly one-sided, it really takes way too much restraint on my part not to defend the PS3. And if you think the PS3 is so bad, why in the world do you have so much free time to check this fan site. I have much better things to do with my free time than to go onto the 360 fan sites to find posts to comment on. It really makes me question the age groups of each console's demographic.

Posted at 11:34AM on Sep 12th 2007 by ruibing

10. @SimplyB

Wow, talking about the PS2 now, aren't we. Just like a normal fanboy would, go back to the one system you actually did decent on, and bring it up again in the NEXT GENERATION.

Who cares about PS2!?!

And how do I have the inferior system? We have more sales (in America and overall - even if you compare us in our first year coming out). We have better games (you can compare again what came out the first year for us and your first year), and we have a brighter future with more exclusive, and more rocking games.

So why don't you look up inferior in the used it in the wrong sense.

And again, maybe Xbox was rushed, but also again, at least we have the balls to admin a hardware error and are totally backing it up with a warranty and another working system that comes back in under a week. What balls and warrantly does Sony have for you guys for fucking up this whole generation. They give you nothing but broken promises and BS excuses, and they take your $600 bucks. GREAT SUPERIOR CORPORATION, huh?

Posted at 11:37AM on Sep 12th 2007 by Stoli

11. Stoli are you just retarded or something ?

Just Leave the PS3 alone, its going to do fine, remember we did have retards in 1999 saying the exactly the same thing about the PS2 only by Dreamcast fanboys. Now where is that console ?

Here is a link to a page with all the below posts :

So here is a few examples of what people where saying back then :

Dreamcast is in Many Ways Superior to the PSX2
Why PlayStation 2 will Fail
Why Nintendo always kicks everybody else's asses
Dreamcast will have a chance to beat sony
Psx 2 is all hype
Dreamcast has better graphics then psx 2 thats what my eyes see
Playstation 2 Games Suck
Dreamcast better than the PS2
Playstation2 is one ugly looking thang

Posted at 11:38AM on Sep 12th 2007 by Zim

12. @ Stoli

It's amazing how much of a cockslap one can possibly be... The balls to own up that they released a piece of shit console to beat competitors and then covering up the whole recall shit just to cloud the fact that their design flaw wasn't so bad?
Seriously you moron Xbox fanboys are really starting to make this site unbearable...

PS3fanboy... Monitor the post more because I'm beginning to think you all don't give a damn about morons that’s just Troll and flame the PS3 and this site...

Do something about it please!

Posted at 11:47AM on Sep 12th 2007 by Spherical

13. No. I don't mean to be unkind - but price isn't the only problem - Xbox has units retailing higher then 400. The number one thing keeping PS3's from moving in any real numbers is it just doesn't have the games. YET. See, I'm an old @#$@#$, I can remember a day when the choice was between Genesis and Super Nintendo and Genesis was the obvious choice for the same reason. Super Nintendo didn't have the games at the time.

Don't misunderstand me, I hope they can deliver; and price drops are always welcome - but without the games it's just another piece of electronica - and we all have that in abundance.

Posted at 11:51AM on Sep 12th 2007 by jadedcritic

14. @ Stoli, I brought up the PS2 because it still out sales your precious xbox360. You seem to think that because the xbox360, which was rushed out a year ahead of when it should have been, has sold more consoles than the PS3. If we are basing the console wars on strictly units sold so far this cycle then the PS2 still beats the xbox360 and it's not even a next gen console. I can take a shit in a box and sell it to you as a fudge cake, or I can bake a real fudge cake, but it will cost you more. Which do you want to eat.


Posted at 11:52AM on Sep 12th 2007 by SimplyB

15. Is there always this many 360 fanboys?

Posted at 11:53AM on Sep 12th 2007 by JarOfFlies

16. Personally, I'm waiting for it to drop in price, and $399 sounds good to me.

Posted at 11:57AM on Sep 12th 2007 by exolstice

17. Definitely part of the problem. Obviously not having a ton of great exclusive games yet is the main issue so far though. This fall should give the PS3 a boost in that department.

I actually just ordered my PS3 last week with that Sony Style deal for $379. Perfect price and I actually wanted the 60GB for the PS2 backwards compatability so it worked out nicely. Hopefully I'll be playing some Warhawk tonight.

Posted at 12:06PM on Sep 12th 2007 by JeremyK

18. Argh. Isn't it obvious by now? The PS3 sales are slow because there are very few compelling software titles to make the console enticing enough to consumers. The price point definitely is not helping, but I think a lot of people could get past it if there were any legitimate killer apps for the PS3. Let's face it, Motorstorm is a fun but shallow game. Resistance is a well-executed but conventional shooter. And Warhawk? Well, a multiplayer only game might not appeal to the masses.

I own all three systems, and I just don't turn on my PS3, because I don't find any games for the system to be all that great. Though, I do want to try out warhawk at some point.

A drop to the $399 price point would be a boon for PS3 sales, but it really won't pick up until there's a definitively great, must-have title out there. And right now, such a title definitively does not exist.

Posted at 12:06PM on Sep 12th 2007 by wei

19. Sorry about the double post. Comment system went wonky on me.

But seriously. The whole console bashing is so pointless. All systems have their merits. And no one system deserves success more than any other for any philosophical reason. You kids bashing on each other just need to whip out a ruler at this point, cuz you're looking pretty damned silly.

Posted at 12:07PM on Sep 12th 2007 by wei

20. I honestly think it is a combination of a lot of things. The most important thing is games. We haven't seen any real killer games for the ps3, I love warhawk and resistance but the ps3 just doesn't have games that are getting big media coverage like halo 3 is. And since there are no big mainstream games the cost seems insane to most people. Why would you want to buy something that is more expensive than the competition but doesn't seem to have games that are up to par with that system. I really like my ps3 but I can completely understand why the average person isn't rushing out to buy one. I think one big game will push sales and I think they probably should have really tried to have God of War 2 as a launch on the ps3. I think the system will survive, but it will take better exclusive games and an online service equal to the 360 to do so IMHO.

Posted at 12:13PM on Sep 12th 2007 by gumby

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