Rumor: PS3 Price Cut in August

By Jane McEntegart, published on June 9, 2009 at 11:50 AM
Source: Tom's Guide US | Keywords: , , , | Themes: Digital Entertainment
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This is one rumor that’s been through the mill a few times.

Analysts say Sony is all but ready to cut the price of the PS3 later this Summer, just before the launch of Madden on August 18.

Industry Gamers today reports that Sterne Agee analyst Arvind Bhatia writes in his latest industry note that “industry sources indicate Sony is planning a $100 price cut on the PS3 in mid-August, just prior the launch of Madden (8/18) and the start of the back to school shopping season,” adding that this will, “naturally be a positive for the industry.”

Similar rumors did the rounds in March, which turned out to be a price cut for the PS2. Granted a $99 PS2 is nothing to turn your nose up at, but a lot of gamers were disappointed that there wasn’t a grain of truth to the PS3 price cut rumors.

According to IG, Bhatia also said that while software sales for the first half of the year are behind that of 2008, "the second half, in contrast, will likely be up ten percent to 15 percent driven by a robust lineup, easier comparisons and potential price cut(s)."

We’re seriously hoping this time around, Sony will deliver.

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Comments

kami3k 06/09/2009 6:05 PM
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We've heard this many times before, I'll believe it when I see it.

Kill@dor 06/09/2009 6:09 PM
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Y

kami3k :
We've heard this many times before, I'll believe it when I see it.



Yea, but if its true, i'm jumping on that wagon. I have been waiting to get one for a long time now...

eklipz330 06/09/2009 6:12 PM
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on top of that, ill be betting that they're gonna be releasing the slim model as well... i know it's real, the psp go and ps3 slim boxes were way to similar to be faked...im pretty sure the slimm will be out before the end of the year

nirvanabah 06/09/2009 6:13 PM
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Pleeeeaaaase be true! I gotta play God of War 3

KiLo81 06/09/2009 6:13 PM
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That would be nice. Right now I can't see shellin' out that kind of cheese for something I will only use when I'm baked.

tenor77 06/09/2009 6:19 PM
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megamanx00 06/09/2009 6:30 PM
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The fact that they axed backwards compatibility for PS2 games makes the PS3 alot less attractive to me. The PS3 has been getting more desirable exclusives, like Infamous, but the fact that I also barely have enough time to play the games I do buy leaves little room for the PS3 for me. I think a price cut for the PS3 would be too little, too late to help it get out of 3rd place right now, but Sony has enough good games that it's likely gamers will buy enough of them to make up for the money lost on the PS3 with that $100 price cut. I guess we'll see.

reddozen 06/09/2009 6:53 PM
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http://uk.videogames.games.yahoo.c [...] 657d1.html

March 22nd they released a firmware update (“Version 1.60”) to allow PS3s without backwards compatibility to add it, as well as bluetooth keyboard and mouse support.

hellwig 06/09/2009 7:14 PM
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I might consider a PS3 as a Blu-Ray player, but even for $299 it will be a more expensive choice. I might buy a handful of games for it too, but with all the consoles I already have in my house plus my horde of computers, it won't be a primary player in my limited freetime.

michaelahess 06/09/2009 7:21 PM
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thejerk 06/09/2009 7:24 PM
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Or you buy a PS2 with that $100 you saved by waiting, and run PS2 games natively.

bill gates is your daddy 06/09/2009 7:28 PM
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"and the start of the back to school shopping season," adding that this will, "naturally be a positive for the industry."

There you go...tell little Billy and Susie to F'off wanting school supplies or new school clothes. Why should any child today need school supplies when an outdated console is more important. I personally am not shopping for game consoles when I am shopping for my children getting ready to head back to school.

Corporations have lost all contact with reality.

Niva 06/09/2009 8:03 PM
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When's the PS4 coming out? :)

captaincharisma 06/09/2009 8:09 PM
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reddozen :
http://uk.videogames.games.yahoo.c [...] 657d1.htmlMarch 22nd they released a firmware update (“Version 1.60”) to allow PS3s without backwards compatibility to add it, as well as bluetooth keyboard and mouse support.



dude that article is from march of 2007

kezix_69 06/09/2009 8:22 PM
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reddozen :
http://uk.videogames.games.yahoo.c [...] 657d1.htmlMarch 22nd they released a firmware update (“Version 1.60”) to allow PS3s without backwards compatibility to add it, as well as bluetooth keyboard and mouse support.



The are up to version 2.10 or something now I think? But like captaincharisma said, that article is very old. The PS3's currently in production do not support PS2 games at all.

kezix_69 06/09/2009 8:23 PM
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Sorry they are at version 2.6 - possibly higher...

Here's a chart showing the different production models:

http://en.wikipedia.org/wiki/PlayStation_3

Maxor127 06/09/2009 8:49 PM
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vettedude 06/09/2009 8:50 PM
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Why don't they cut the price by $50 and slap an Emotion Engine in there?

captaincharisma 06/09/2009 8:53 PM
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i think Sony said because of the chip being too old it got more costly to make so they removed the chip and used an emu for the compatibility after that and then got rid of it altogether to drive the price down.

Dave_69 06/09/2009 8:59 PM
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Yes, now I can play God of War III. Honestly I think the main driver behind the Wii's popularity in contrast to that of the PS3 is the retail price.

tipoo 06/09/2009 9:04 PM
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No price cut, they will release one without an optical drive thats 30% smaller and charge a 150% premium for it.

captaincharisma 06/09/2009 9:09 PM
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or they will do like they did with other so called price cuts. just sell a 120GB version of the console at the same price of the current 80GB model and phase it out

Antilycus 06/09/2009 9:10 PM
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Not going to happen, Sony is still losing Millions onf the PS3 production.

vettedude 06/09/2009 9:24 PM
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Antilycus :
Not going to happen, Sony is still losing Millions onf the PS3 production.


That was a while ago. Sony moved the Cell to 45nm I think (of was it 65?) which cut costs a lot. Last I heard they were close to breaking even on each individual system.

Antilycus 06/09/2009 9:35 PM
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Vettedude, if that were true, then why would they want to continue to lose money on it? That article, saying that it was about 20 bucks a system they were losing was during January 2009. So lets say they are generating a $5 profit. dropping the price another 100 bucks, is going to mean they'll sell for a $95 loss. Lets say that magic were to happen and sony where to magically start selling 8 million systems at the new price. That would be $760,000,000 (million) LOST. Think of it as if you were running Sony. The PS3 has done nothing but costs your company BILLIONS of dollars and you have yet to see a single cent of profit from it. Just getting to a positive on the production costs would seem like a god send. Dropping it another 100 dollars would be a STUPID business decision.

johnny_5 06/09/2009 9:37 PM
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vettedude :
Why don't they cut the price by $50 and slap an Emotion Engine in there?


It would be nice for consumers if Sony gave at least their higher sku backwards compatibility. They won't though because then they'd have to differentiate the fabrication, which costs money. Right now the hard-drive is the only difference, if I remember correctly. Really all PS3's should be backwards compatible, but apparently its not to be.

-unknown- 06/09/2009 10:28 PM
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Antilycus :
Vettedude, if that were true, then why would they want to continue to lose money on it? That article, saying that it was about 20 bucks a system they were losing was during January 2009. So lets say they are generating a $5 profit. dropping the price another 100 bucks, is going to mean they'll sell for a $95 loss. Lets say that magic were to happen and sony where to magically start selling 8 million systems at the new price. That would be $760,000,000 (million) LOST. Think of it as if you were running Sony. The PS3 has done nothing but costs your company BILLIONS of dollars and you have yet to see a single cent of profit from it. Just getting to a positive on the production costs would seem like a god send. Dropping it another 100 dollars would be a STUPID business decision.


There's more to the business model than how much Sony makes off of the sale of each PS3 unit. I'm sure you've heard of the razor model which consists of losing money on the console but making a profit on the game/disc licensing to offset the loss. Historically, this model does work (as it has for the PS and PS2) but is contingent on the principle that mass adoption of the product (console) will lower manufacturing overhead costs in a timely manner to place production in to profitable operation. Material expenses would follow also in time as the technology involved matures and becomes more commonplace. Other cost savings such as scaling back features and combining chipsets are also commonplace in the quest to lower production costs of any product.

Granted, mass adoption (at the forecasted level) has not occured which is why Sony is having so much difficulty with the PS3 and lowering its production costs. I bring this up only because of the narrow analysis you provided in your comment above but I'm hoping I've shed some light on the issue.

fa_q2 06/09/2009 11:14 PM
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This is a little too late. I have waited so long for the PS3 to drop in price I may just end up waiting for the next round. Sony really killed themselves with this machine. It has been proven many times that price is one of the largest concerns for a new consul. I believe that is the major reason that the Jaguar never went any ware. Why get the 600 dollar system when there is another at 150 right next to it. The Wii has done so well not just because of the new controller scheme but because it is so cheap. I have a 360 and a Wii but not a PS3 even thought I wanted the PS3 more than the other 2 because it cost the same for the 2 systems.

soldier37 06/10/2009 1:56 AM
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The ps3 rules if you can't afford it get a job hell get 2. Stop complaining and work hard and buy one. Otherwise stop coming here complaining it's too high. It's still the best blu ray player IMO you can get. I'm a pc gamer mainly and it owns my ps3 but still a happy owner who paid $540 with Mgs4 bundle last summer and worth every penny. Stop whining and save and get one or wait till the price drop. The crapbox is out of date and the Wii is for kids under 10.

xophaser 06/10/2009 3:39 AM
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Maybe I'll ebay my old 20gb model with a 250gb hardrive upgrade. Don't play PS2 games in years, and don't care for them. Then get the PS3 slim shady, gun metal grey please.

Dave_69 06/10/2009 3:46 AM
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Amen soldier37! You rock, man.


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