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Sony started production on the smaller Cell.


CPUWIZ

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I'm not so sure about that. Given that, by most accounts, PS3's are littering the aisles at many retailers, and also that Sony must have decided that whatever the dollar figure they were losing on the units at their current price point was acceptable, they may just want to lower the price to get some more units into consumers' hands.

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I doubt they'll lower the price any time soon. I would guess at least 2 years before that happens. Winter is always a good time to build up stock so there are enough units available for some big game releases in March. It will be interesting to see how well the PS3 sells during it's Euro/Aus launch. They should have an abundance of consoles ready to go by mid-March.

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Sony said themselves to not expect a price drop for another 2-3 years.

 

I didn't say anything about a price drop anytime soon, I just said it will make it cheaper for Sony. :P Which in the end-run, will make it cheaper for consumers too, of course. ;)

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I didn't say anything about a price drop anytime soon, I just said it will make it cheaper for Sony. :P Which in the end-run, will make it cheaper for consumers too, of course. ;)

 

I think thats a little bit of a cheap escape. You didn't say ANYTHING about it being cheaper "for sony" :P

We're totally calling you out on this one CPUWIZ! :D

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To think sony will be lower price on the consumers end is mistaken. I've read somewhere that ps3 costs around $1,000 to make for each system with the bigger cell. Ken from sony last year, claimed the price sony announced was to "cheap" due to the fact sony will be loosing a lot of money.

 

Sony suffered a 455 million dollar loss in its gaming division last year. This will cut down the $400.00 loss for each ps 3 game console they make. It is true that you make up the difference from the loss you make production by the amount units each game sells, but you have to think how many games it will have to take to make up that difference. The money that the blu-ray movies make will not be accounted for in its gaming division, but in one its other divisions.

The main cost the ps3 is in the cell and in the format it uses in the blu-ray. Here is where I got the $455 million dollars from: http://www.gamespot.com/news/6164947.html

 

Here is is the gaming division part of the article: The Tokyo-based corporation did report a loss of 54.2 billion yen ($455 million) in its game division for Q3 2006, compared to a profit of 67.8 billion yen ($556 million) recorded in the previous year's third quarter. This was mainly due to selling the PlayStation 3 at "strategic price points"--console hardware units are often sold at an initial loss for the manufacturing company, with the money recouped from strong games sales. Other factors included additional costs incurred during the preparation for the launch of the next-generation console and a decline in PlayStation 2 and PlayStation Portable sales. PSP sales were "lower than expected."

 

The ps 3 is a part of the $455 million dollar loss for sony's gaming division. As someone who took account courses in college, The loss sony took in its division is missleading to sony as a whole if rest of the divisions of sony can up for the loss. Sony is doing the smaller cell do to the fact they want to see how much it helps out the gaming division with the ps 2 game sales on the decline and to see it has to do something with the psp. The psp has to be a big factor along with ps3 with the loss. The psp does sell a good amount of units, but it appears to be loosing money on making it with the game sales being disappointing for the psp. With the bigger cell sony uses for the ps 3 it does cost more the psp does for taking a loss on each system that is being made. With small cell the difference in loss between the ps 3 and the psp will close the gap in comparing losses for each system made from a production cost standpoint with the ps 3 price dropping. What the loss on the division can do is if it gets any worse like the gaming division takes a over a billion dollar loss then, then sony will close that department with rest of its divisions are making money.

Edited by 8th lutz
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Sony said themselves to not expect a price drop for another 2-3 years.

What was that again?

http://news.com.com/2061-10797_3-6155119.h...5&subj=news

 

Sony won't consider it until the next quarter sales reports are in for them.

If they see that PS3 sales are low, then they're fools not to act towards lowering the cost.

 

I'm sure they will lower the costs because I dont have high expectations for the sales

of this console. I am not going to say it won't sell, just rather that Sony should realise

they are going to suffer a highly notable drop in market share compared to last gen.

 

So because of this, they will lower the cost of the device once they feel that it makes

economic sense for them to do it. I suspect they're also waiting on better/more games

to release for the console in addition to watching sales figures.

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Well one can always pick their poison. :lol:

 

But really that article mentioned was mostly speculative..

 

Sony may be eyeing price cuts for its next-generation PlayStation 3 video game machine in a bid to break even on the console by the end of fiscal 2008, it told reporters in Tokyo.

 

2008 is a while away..

Edited by Shannon
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Well one can always pick their poison. :lol:

 

But really that article mentioned was mostly speculative..

 

Sony may be eyeing price cuts for its next-generation PlayStation 3 video game machine in a bid to break even on the console by the end of fiscal 2008, it told reporters in Tokyo.

 

2008 is a while away..

Not really. According to the one article you linked to, it starts in two months.

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Sony just needs to have a little paitence. The ps3 cost double of what the ps2 did at launch, give some people some time to save up for one. It's not like nobody wants a PS3 right now, it's more like the people that do want one are saving up for it. Bestbuy.com is sold out of every PS3 system bundle. The systems seem to fly off shelves on month than tamper off to nothing the next. It takes time to get $600 together. Relax Sony or if they want quick sales, then start offering finacing on the damn thing. jeezy peezy

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It takes time to get $600 together. Relax Sony or if they want quick sales, then start offering finacing on the damn thing. jeezy peezy

There is already financing available. It's called a credit card. While not everyone has a credit card, enough people do.

 

For what it does, the PS3 isn't overpriced. But does everyone who wants one, want to do everything it can do? The PS3 suffers from the same problem the PSP does. A nice system that can do a lot, but over-priced if the only thing you want to do is play games.

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It takes time to get $600 together. Relax Sony or if they want quick sales, then start offering finacing on the damn thing. jeezy peezy

That's not a bad idea, actually. But I don't think that most consumers would look favorably on financing just a game console. What Sony should do is create a Movie/Gaming bundle that packs in the PS3, a Sony HDTV, a copy of Resistence, and a Bluray movie that doesn't suck. They could then offer financing on the whole shebang, thus giving consumers a reason to purchase both an HDTV and a PS3. Otherwise, Sony is facing the chicken and the egg problem of consumers who don't want to buy a PS3 because they don't have an HDTV, but don't want to buy and HDTV because they have nothing that uses it.

 

I wouldn't buy the bundle (I'm still boycotting the mothu'@#$#@!ers), but I know of plenty of people who would. It would also provide consumer incentive to purchase Sony's offerings over, say, Samsung's inexpensive HDTVs. :)

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There is already financing available. It's called a credit card. While not everyone has a credit card, enough people do.

FWIW, store financing usually comes with a few features that make it more desirable than credit card debt. The first is that there is usually far better than the standard offerings of credit cards. The other is that there is usually a short-term payment plan. When people take on short-term debt, they tend not to think of it the same way as they do a credit card. Which means that they won't cringe quite as badly as when they hand over the plastic.

 

Of course, it's still just a credit card with a promotional deal, but it can make a big difference to consumer buying decisions.

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There is already financing available. It's called a credit card. While not everyone has a credit card, enough people do.

FWIW, store financing usually comes with a few features that make it more desirable than credit card debt. The first is that there is usually far better than the standard offerings of credit cards. The other is that there is usually a short-term payment plan. When people take on short-term debt, they tend not to think of it the same way as they do a credit card. Which means that they won't cringe quite as badly as when they hand over the plastic.

 

Of course, it's still just a credit card with a promotional deal, but it can make a big difference to consumer buying decisions.

You are correct. I just used having a credit card as an example. I just wanted to remind the poster that there is already some form of financing available.

But many stores are using their own credit cards as a way to finance instead of the traditional plans. And those cards usually have double or triple the rates of regular credit cards.

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Well one can always pick their poison. :lol:

 

But really that article mentioned was mostly speculative..

 

Sony may be eyeing price cuts for its next-generation PlayStation 3 video game machine in a bid to break even on the console by the end of fiscal 2008, it told reporters in Tokyo.

 

2008 is a while away..

Not really. According to the one article you linked to, it starts in two months.

 

Where do you get that from? At best it says that Sony expects to stop making loss on the console next term. Nothing about price drops. In fact the paragraph after that says "Don't expect any price drop anytime soon".

 

When I purchase my PS3 at best buy, they offered plenty of payment plans under the Best Buy card. I had also heard rumours that some best buys are only keeping a couple PS3's out on the floor at the time to simulate demand. Regardless if there was any place to go to get good financing Best Buy would be the place.

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Well one can always pick their poison. :lol:

 

But really that article mentioned was mostly speculative..

 

Sony may be eyeing price cuts for its next-generation PlayStation 3 video game machine in a bid to break even on the console by the end of fiscal 2008, it told reporters in Tokyo.

 

2008 is a while away..

Not really. According to the one article you linked to, it starts in two months.

 

Where do you get that from? At best it says that Sony expects to stop making loss on the console next term. Nothing about price drops. In fact the paragraph after that says "Don't expect any price drop anytime soon".

 

When I purchase my PS3 at best buy, they offered plenty of payment plans under the Best Buy card. I had also heard rumours that some best buys are only keeping a couple PS3's out on the floor at the time to simulate demand. Regardless if there was any place to go to get good financing Best Buy would be the place.

I got that from the 2nd article you linked to. It said that SONY'S FISCAL 2008 starts in April. Don't you read what you link to? You said that "2008 is a while away". For Sony it begins in two months. I didn't say that price cuts would start in two months! :ponder:

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My ORIGINAL STATEMENT was..

Sony said themselves to not expect a price drop for another 2-3 years.

YOUR REPLY to it was..

What was that again?

Pretty vague but I can only assume it was referring too two key points (since you did not SPECIFY). Price drop, and 2-3 years.

My next statement which was not even a direct reply to it was the "pick your poision" comment and that "2008" was still a long way aways.

 

Your reply was

Not really. According to the one article you linked to, it starts in two months.

I was still sticking to my ORIGINAL PREMISE which was that no price cuts to the consumer are coming anytime soon. Which is what I presumed is the point you were arguing TO BEGIN with.

 

Did you change your mind about the price drop? Or were you arguing about a date that no one cares about? Nobody argued when, where, or how sony was gonna "break even". We were disputing a price drop to the consumers.

 

Yes I do read your posts, as well as the ones that proceed them. It's something called CONTEXT. Something that was apparently overlooked by you. Sounds like there was a mix-up in WHAT we were arguing about. But considering your original vague reply I can see how that could occur.

Edited by Shannon
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