Ps3 @ $500?

[ghost master]

NEW YORK (CNNMoney.com) – While there was little doubt the Xbox 360 was going to be a hit in the just completed holiday season, no one was real sure how consumers would react to the $399 price tag.

Despite the $100 bump over the launch price of the original Xbox, few seemed to mind. Now, with Sony's PlayStation 3 looming, it appears another price threshold may be crossed before the year is out.

Sony hasn't commented on specific pricing figures, though Ken Kutaragi, president of Sony Consumer Entertainment, reportedly told attendees of a 2005 corporate meeting "it'll be expensive." Analysts and many video game developers, though, suspect the system may debut with a price tag reaching nearly $500.

"[Sony] could now consider launching its PlayStation 3 at a price range of $399 to $499, with the $499 price point more likely," said American Technology Research's P.J. McNealy in a note to clients Monday.

Sony, as you might guess, didn't have much to say about McNealy's theory.

"We haven't made an official announcement about pricing yet," said Ryan Bowling, PR manager for Sony. "At this point, that's all speculation."

The strongest argument behind the $499 price point is the PS3's inclusion of a Blu-Ray drive. This bleeding edge technology will give Sony (Research) significant bragging rights, but it comes at a cost. Pioneer last week at the Consumer Electronics Show unveiled a standalone Blu-Ray player for $1,800.

Obviously, Pioneer's earning some profit there – and Sony will almost certainly subsidize the cost of the drives, but you're still looking at an expensive bit of hardware. The PS3 will also feature other pricey items, such as a hard drive, the Cell processor and a new graphics chip from nVidia (Research).

Developers, for the most part, say they, too, are expecting the PS3 to be more expensive than the Xbox 360's highest price package. Sony, they said, has been sending mixed messages to the gaming world, but several developers I spoke with (under the condition of anonymity) said their studios were expecting the system to launch at $499.

There wasn't universal consensus, though. Some predicted the price would be closer to $450, others said they wouldn't be surprised if it was as high as $600. $700 was mentioned by a couple of developers, though even they said the number seemed unreasonable. And one game maker felt Sony would try to stay in line with Microsoft, offering the PS3 for just $399.

None of the developers, by the way, echoed my hypothetical theory that Sony might be pulling a head-fake on Microsoft with the high price warnings, though a couple did bring up the months of speculation leading up to the PSP's launch. Analysts, journalists and even publishers were wildly grasping for a solid clue about the launch price of the handheld device. (Atari's CEO even publicly proclaimed he expected the PSP to sell for $500.)

Sony, while this went on, smiled enigmatically and did nothing to dissuade anyone that the device would be $300 or more. It launched at $249, still incredibly expensive by handheld standards, but lower than some consumers were expecting.

We're seeing much the same thing with the PS3. After an onslaught of information last May, the company hasn't released any information of substance. Even at CES, the device was an essential no-show. (A hardware design was there to be gawked at and a video loop of potential gameplay footage, but no new information was announced.)

There's one other possibility about the PS3 that few people have discussed: Dual-pricing strategies. It's frustrating from a consumer standpoint, but Microsoft proved it can work – at least in the U.S. Whether Sony's willing to risk fragmenting the market by offering both "bare bones" and "bells and whistles" versions of the PS3 is another matter.

For one thing, it would look as if Sony were following Microsoft's (Research) lead – a vision the market leader does not want to convey. Offering a PS3 with reduced features would also chip away at the company's stance that the system is much more than a video game machine.

not to say I totally believe it but, it does reinforce the high price speculation theories.

 

[Chris]

All in all, I will laugh at you all for wasting your money/parent's money on getting an expensive as hell console during launch with the possibility of mistakes at launch (Sony's had it's fair shares since PS2).

This is why I wait for prices to dive. :x

Expensive console + expensive accessories + expensive game = NO

 

[WinterSnowblind]

It is just more speculation though, and is getting more than a little tiring. The PS3 is either going to be very expensive, and probably lose a lot of their market to the 360, or Sony will lower the price to compete - but if they do that, they are going to take a pretty big hit.

 

[Paradox]

We had the same thing with the PSP, and that turned out lower than most reports

 

[Chris]

We had the same thing with the PSP, and that turned out lower than most reports

Yet more expensive than the Japanese release all thanks to Sony choosing not to release the handheld seperately and it remains to be the most expensive handheld currently. ;\

 

[Eileen]

If it's that expensive, I wouldn't buy it since I have to buy extra controllers, Games which will cost over 50-60 dollars because of blu-ray, and accessories...

With that money, I could buy some gamecube games, upgrade to a highend card, and some computer games....

Sony is just greedy.... =/

 

[The Assassin]

If it's that expensive, I wouldn't buy it since I have to buy extra controllers, Games which will cost over 50-60 dollars because of blu-ray, and accessories...

With that money, I could buy some gamecube games, upgrade to a highend card, and some computer games....

Sony is just greedy.... =/

Well, smart people usually do this: Wait for the frickin expensive console to drop its prices. PLus, new games will be out for it!




Fanboys:OMFG I have to buy this game system Right now!
Not so smart there bub. Now hopefully, the PS3 will deliver. Instead of EVERY store running out of the *CoughXbox360cough*, Sony will give ENOUGH consoles to the store. Now I like Microsoft and the Xbox, but I think it was a bit, Vacous, of Making 2 consoles. Now Sony, 500$? Come on, why not 400$?

 

[Magnus]

Well, smart people usually do this: Wait for the frickin expensive console to drop its prices. PLus, new games will be out for it!




Fanboys:OMFG I have to buy this game system Right now!
Not so smart there bub. Now hopefully, the PS3 will deliver. Instead of EVERY store running out of the *CoughXbox360cough*, Sony will give ENOUGH consoles to the store. Now I like Microsoft and the Xbox, but I think it was a bit, Vacous, of Making 2 consoles. Now Sony, 500$? Come on, why not 400$?

Oh, come on. You really believe there won't be shortages? You're kidding yourself. The PS3 will be as hard to get as the 360, if not more so, because Sony has a larger fanbase. I also believe it's going to be around $500.

 

[DJ-Will]

I'm going with the $600 tag. Expensive is expensive.

 

[Chris]

It's as Latios said. It's not the company that decides the price is greedy, but rather how much the equipment costs them in the long run and then they have to decide how much it should cost because of the equipment.

Every console that's come out so far has been quite expensive during launch.

 

[AV_ROcK-Dark-TB]

It's as Latios said. It's not the company that decides the price is greedy, but rather how much the equipment costs them in the long run and then they have to decide how much it should cost because of the equipment.

Every console that's come out so far has been quite expensive during launch.

..
I belive you correct as for most people think It's the companey that make's up the prices(I was about to say sony is crazy now i know why the psp's got a high price>_>)

 

[Cdaghostie]

at 400 it would be pushing sony's luck assuming every person who buys a ps3 will buy about 10 games to give sony back their losses
i figure this since ps3 standalone with 360 capabiltilys is 400 then 400 for blue-ray, 100 for gpu and processors, etc. you get the point

defiently wait for the ps3 i bought a 360 cause i wanted one and i missed out on the whole entire xbox

 

[Bulk]

Out of interest, does anyone have any strong information about how much games are going to cost? The price of games is, in some respects, more important than the cost of the system. If the games are too expensive, the console is unlikely to sell.

 

[The Battousai]

Out of interest, does anyone have any strong information about how much games are going to cost?The price of games is, in some respects, more important than the cost of the system.

Very true the average gamer spends over $1,000 (1 grand, 1K, 10 bills whatever) in games for a console. It's not really the console's price that matters it's the game's price. I would buy a PS3 for $600 if the games were say $30 each (LOL if both actually happend) because, in the long-run, I'd be saving more than buying a 360 at $400 with games at $60 each. Say I buy 15 games this generation I save $250 buying the PS3 as opposed to the 360 ($1,050 to $1,300). The average consumer sadly doesn't think like that but hey look at the facts, these corporations gross most of their profit from publishing games not from selling consoles. Heck, they actually lose money selling consoles.

 

[meta-master]

Expensive console + expensive accessories + expensive game = NO

You forgot hdtvs

 

[DJ-Will]

Out of interest, does anyone have any strong information about how much games are going to cost? The price of games is, in some respects, more important than the cost of the system. If the games are too expensive, the console is unlikely to sell.

It's said that due to the high production values, PS3 games COULD cost up to $70.

 

[melvin]

It's said that due to the high production values, PS3 games COULD cost up to $70.

Screw that. I cant afford a ps3 nor do i care about any of the games coming out for it. Xbox 360 for me.