heyholetsgogrant Posted January 12, 2006 Share Posted January 12, 2006 PlayStation 3 price - $500? Analysts, developers say they expect Sony's new console to break new price barriers. Game Over is a weekly column by Chris Morris January 11, 2006: 10:17 AM EST 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's PlayStation 3 is expected to release later this year. Sony's PlayStation 3 is expected to release later this year. Want more video game news and commentary? Click the orc. 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. Whatever Sony decides, we should start to get some sort of clarification in the next few months – almost certainly by E3 in May. One thing's for sure, though: For saying a whole lot of nothing, Sony has somehow managed to keep everybody talking about its product. http://money.cnn.com/2006/01/11/commentary/game_over/column_gaming/index.htm Link to comment Share on other sites More sharing options...
chomerics Posted January 12, 2006 Share Posted January 12, 2006 All I've heard is negative from the PS3 so far, the outlook doesn't look good. Link to comment Share on other sites More sharing options...
heyholetsgogrant Posted January 12, 2006 Author Share Posted January 12, 2006 I sure as hell ant payin $500 for a gaming system, for double that you can guy a top of the line computer. -Grant Link to comment Share on other sites More sharing options...
ironmic Posted January 12, 2006 Share Posted January 12, 2006 All I've heard is negative from the PS3 so far, the outlook doesn't look good. :doh: no you haven't Link to comment Share on other sites More sharing options...
KillaCam21 Posted January 12, 2006 Share Posted January 12, 2006 Luckily I'm not into video games. $500?! EEK... Link to comment Share on other sites More sharing options...
Prosperity Posted January 12, 2006 Share Posted January 12, 2006 I will buy it, sell it on ebay a day later for $1000 Link to comment Share on other sites More sharing options...
endzone_dave Posted January 12, 2006 Share Posted January 12, 2006 I think the PS3 will be $400, no matter how much it costs Sony to produce them. Coming in $100 more than the 360 would kill it. I know I'd have a hard time to convince the boss to let me spend $500 on a gaming console. Link to comment Share on other sites More sharing options...
Shallow1 Posted January 12, 2006 Share Posted January 12, 2006 I have been gaming for 25 years and have played/owned just about every console since Pong, and if Sony is saying there system is better and there charging $100 more than the X360 I am enclined to believe them. Sony is not stupid if it is just as good as a X360 everyone will say why pay $100 more and Sony would look like major fools, I would have more reservations if Sony was selling the PS3 for the same cost as a X360 and claiming it was better. PS3 will be great if it does even 80% of what Sony says it will, and for $500 I would challenge anyone to put together a PC for $500 that could handle what the PS3 is saying it can. Link to comment Share on other sites More sharing options...
Renegade7 Posted January 12, 2006 Share Posted January 12, 2006 E GADS!!! I think my heart just stopped. Link to comment Share on other sites More sharing options...
LegionOfDoom Posted January 12, 2006 Share Posted January 12, 2006 Give me a NES...with Duck Hunt and Mario Bros.... Link to comment Share on other sites More sharing options...
The Showstopper Posted January 12, 2006 Share Posted January 12, 2006 ive heard rumblings that the games are going to be in the area of $90 Link to comment Share on other sites More sharing options...
rebornempowered Posted January 12, 2006 Share Posted January 12, 2006 ive heard rumblings that the games are going to be in the area of $90 Especially if they are on the Blu-Ray discs. Blu-Ray is what is going to drive this thing through the roof. Link to comment Share on other sites More sharing options...
nickfox45 Posted January 12, 2006 Share Posted January 12, 2006 what exactly is Blu-ray? Link to comment Share on other sites More sharing options...
HOF44 Posted January 12, 2006 Share Posted January 12, 2006 If you will be able to play Blu-Ray DVD's it will be a bargain. Blu-Ray is a high capacity dvd. It can hold HD Movies. Link to comment Share on other sites More sharing options...
Shallow1 Posted January 12, 2006 Share Posted January 12, 2006 If you will be able to play Blu-Ray DVD's it will be a bargain.Blu-Ray is a high capacity dvd. It can hold HD Movies. It can basically hold 5 X the information of a DVD.... Link to comment Share on other sites More sharing options...
zoony Posted January 12, 2006 Share Posted January 12, 2006 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). I'm confused. Isn't this market dumping? Link to comment Share on other sites More sharing options...
SkinInsite Posted January 12, 2006 Share Posted January 12, 2006 Here's hoping the $150 Nintendo Revolution will come with decent games. $400+ for a console plus 60+ for games? Count me out. Link to comment Share on other sites More sharing options...
HOF44 Posted January 12, 2006 Share Posted January 12, 2006 I'm confused. Isn't this market dumping? Sounds like it. But hey if I can get a blu-ray player that will play HD dvd's for 500.00 I'm buying it. It'll be like getting the game system thrown in for free and still saving some. Has anyone heard if this thing will actually play HDDVD's ?? If it does Sony could end up the big winners. There is a battle going on between HD-DVD and Blu-Ray technoligies. Both are trying to be the next level DVD player that will display HD material. If sony can get a few million in homes using blu-ray the battle will be over. All the studios will be putting out blu-ray movie disks because the base will be there. Should also make the cost of media come down quicker if games are put on blu-ray disks. Volume = lower prices. Very interesting strategy by sony. Link to comment Share on other sites More sharing options...
zoony Posted January 12, 2006 Share Posted January 12, 2006 At what point do these guys price themselves right out of the market? Not a rhetorical... seriously wondering. How much is too much? NO WAY I spend $500 + $90 a pop for each game on any child of mine. But that's just me. Everyone else? ....... Link to comment Share on other sites More sharing options...
Captain Chaos47 Posted January 12, 2006 Share Posted January 12, 2006 At what point do these guys price themselves right out of the market?Not a rhetorical... seriously wondering. How much is too much? NO WAY I spend $500 + $90 a pop for each game on any child of mine. But that's just me. Everyone else? ....... The video game market is skewing more and more towards 20 something men with a little disposable income (or credit cards) in their pockets. I think it's Nintendo who is chasing the younger crowd. However, my generation grew up with video games basically from the beginning. Guys who are in their late 20s and are making decent money are willing to throw down a little bit of cash in order to have the best. If you look at it, more and more titles being released are in the 17+ category and are catering towards adults. Link to comment Share on other sites More sharing options...
HOF44 Posted January 12, 2006 Share Posted January 12, 2006 At what point do these guys price themselves right out of the market?Not a rhetorical... seriously wondering. How much is too much? NO WAY I spend $500 + $90 a pop for each game on any child of mine. But that's just me. Everyone else? ....... Don't forget about us home theater enthusiast. I would pay 500.00 tonite for a bluray dvd player. Assuming the movies will start to be available. So they kind of get a shot at 2 markets. The video game and home theater markets. Link to comment Share on other sites More sharing options...
KevinthePRF Posted January 12, 2006 Share Posted January 12, 2006 20something? So am I a bigger loser than the 20somethings they are marketing to? Link to comment Share on other sites More sharing options...
Thanos Posted January 12, 2006 Share Posted January 12, 2006 Folks are lying.You'll be lined up at midnight and will pay $500.00 gladly.:notworthy I'll wait a few months and let the kinks iron out first.But I'm holding out for this system. Link to comment Share on other sites More sharing options...
lckelsey4 Posted January 12, 2006 Share Posted January 12, 2006 I'm waiting for the Revolution; the ability to download old NES games is enough for me. I can't justify paying $500 for a Video Game system, no matter what extras it has. Link to comment Share on other sites More sharing options...
SoCalSkins Posted January 12, 2006 Share Posted January 12, 2006 I will buy it, sell it on ebay a day later for $1000 I don't think it will be the same as the xbox360. When PS2 came out, they were going for triple sticker price, but when the xbox came out afterward it didn't have a huge mark up on ebay. This will be the same. People will buy an xbox360 to hold them over until the ps3 is more available. Microsoft is suppose to release Halo 3 on the same day as the PS3 launch. Link to comment Share on other sites More sharing options...
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