SCEA CEO Says PS3 Will be "Difficult to Cost Reduce"

[sladesurfer]

The magazine asked if the PS3 would see a price drop schedule similar to PS2, which saw a reduction of a third from $299 to $199 just over a year and a half after launch. Tretton replied to the question with a simple “No,” thus leaving the current price points where they are at for at least the rest of 2007.

Tretton reasoned that the enormous R&D costs of the PS3 make it “a lot more difficult to cost reduce” than the PS2. “There's a heck of a lot more under the hood and it costs us more money to make it,” said Tretton. He may be referring to the fact that Sony is selling every one of its new consoles at a loss, making it nearly impossible to move on the price until manufacturing costs are reduced. Analysts currently estimate that Sony is taking a $241 hit on 60GB versions, and a $307 loss on 20GB PS3s.

http://www.dailytech.com/Article.aspx?newsid=5810

[LudLud]

that's bs, no company would release that many consoles if they were loosing that much money from each of them... there's no profit and why would they do that? End up loosing millions of dollars...

[DTU_XaVier]

It's usually games and accesories that make up the income of consoles... All kinds of hardware are sold at a loss, and consoles are the worst (with PS3 in the lead obviously )

Best Regards

[sladesurfer]

that's bs, no company would release that many consoles if they were loosing that much money from each of them... there's no profit and why would they do that? End up loosing millions of dollars...

Its a known fact for a long time that sony,microsoft and nintendo are/were losing money when consoles are release. Today,Nintendo got smart and release a console that actually makes profit for the very first time.The trade off is not a lot of horesepower under the hood but Innovative game play.

[vudoodoodoo]

Sony should take the hit. $100 off will get more systems sold. Make money off the games and Blue Ray movies. I'd buy one if it's $100 off or $100 rebate even.

[blink hi]

there are a lot of smart people involved in fairly complicated cost-benefit analyses that support the guys with mics. stuff doesn't just get priced randomly.

[Revv23]

wow a $300 loss, thats the entire price of PS2 when it came out...

Sony is going to have yet another year of losses.

[[cTx]Philosophy]

I love it, dont get me wrong Sony has always been my favorite brand of electronics, but inthe ps2 VS Xbox I went with the Xbox and tried to convince all my friends and family to do so as well, some followed and some didnt, so in that respect I can say I was always on M$ side in the recent console wars..

And now with the 360 VS PS3 I also said the same thing, well see how this one turns out..

Sonys in trouble for sure this round...

[eXceeded]

Sony is selling hte PS3 at a bargain if you ask me, the tech inside the unit is worth soo much. That isn't to say that it is worth the complicated hardware premium especially when the end result is a weaker system than the 360 (graphics are weaker, cpu power is more parellel)

[[XC] Teroedni]

Sony is selling hte PS3 at a bargain if you ask me, the tech inside the unit is worth soo much. That isn't to say that it is worth the complicated hardware premium especially when the end result is a weaker system than the 360 (graphics are weaker, cpu power is more parellel)

I would say it was worth much ,but with the introdution of Core 2 duo and the great competition between Amd and Intel resulting in lower prices, and soon to become K8l and Yorkfield 45nm , i would say that the 8 core cell seems kinda weaker

BTW: I hope Sony lose alot on the P3.
I will celebrate the day they go Chapter 7

[yaddam205]

It's usually games and accesories that make up the income of consoles... All kinds of hardware are sold at a loss, and consoles are the worst (with PS3 in the lead obviously )

Best Regards

Very true, if they actually buy them... I have read numerous articles that state that two every PS3 then is less then 1 game sold in japan.

[deathman20]

It's usually games and accesories that make up the income of consoles... All kinds of hardware are sold at a loss, and consoles are the worst (with PS3 in the lead obviously )

Best Regards

Wii is making money as well as the Xbox 360 now. Only took less then a year for Xbox 360 to make it out of the negative for the console's construction.

[eXceeded]

I would say it was worth much ,but with the introdution of Core 2 duo and the great competition between Amd and Intel resulting in lower prices, and soon to become K8l and Yorkfield 45nm , i would say that the 8 core cell seems kinda weaker

BTW: I hope Sony lose alot on the P3.
I will celebrate the day they go Chapter 7

erm FYI the cell isn't even as powerful as a dual core P4:
http://dpad.gotfrag.com/ps3/story/35372/
Read the whole thing, it gives a big insight into the tech in both 360 and PS3. Shows how much money is wasted on production as well, no actual figures given though..

[desolator]

Question: why is sony hated so much? sure, they arnt wht they were 1nce, but any manafacturer going out of business cannot possibly be good for the consumers! especially 1 as big as sony.

[ahmad]

When they are making rootkits and making shoddy products, no one wants to buy anything from them. Besides, where is the competition they are providing? Wii is Microsoft's real contender and they are pushing prices down. Whats sony doing?

[iddqd]

Whats sony doing?

Still selling PS2s.

[Metroid]

How can something that costs so expensive gets a reduced price?

Answer --> not here or either in China.

Stupid Sony and its marketing people.

PS3 UK = 425£ no thanks. I would rather buy R600.

[eXceeded]

I would rather buy R600.

QFT!!!!!

[railhan]

Selling at lost ... Oh ... come on ! That's marketing BS.

The cost of PS3 when you add the R&D and marketing is probably more than 499 but you can't make me believe that the pure costs of building it are more than $250-300. I can't back it with facts ... just common sense.

If you sum everything .... Sony is probably on lost but still making some coin from every PS3 sold. In time the income from royalties, accessories and other stuff is going to (should) make it up.

Just my thoughts .

[topaimz]

Well, what Sony does is bloody typical.

Throw out anything that costs the most, and they
expect to win...

Sony needs to get back in touch with what the
consumer wants... They got too snobbish thinking
what they make is what the consumers want...
(some Sony rep said that last year )

I hope Sony Electronics dies and Sony's game division
is swallowed whole by Nintendo

[vitaminc]

Selling at lost ... Oh ... come on ! That's marketing BS.

The cost of PS3 when you add the R&D and marketing is probably more than 499 but you can't make me believe that the pure costs of building it are more than $250-300. I can't back it with facts ... just common sense.

If you sum everything .... Sony is probably on lost but still making some coin from every PS3 sold. In time the income from royalties, accessories and other stuff is going to (should) make it up.

Just my thoughts .

was going to use the stereo typical widget example but realized that it doesnt account for accounting issues.

but ya, the fix costs needs to be added on top of the variable cost, not excluded.

[MaxxxRacer]

3.
I will celebrate the day they [Sony] go Chapter 7

Amen to that!

[MrDeeds]

I fully understand hating sony but use some logic guys. Sony is intrenched in too many businesses for a game console to sink the whole ship.

The can make 400million on a hit movie and the make hundreds of millions more when the movie is released on dvd and crappy blue ray. They rape people everyday on overpriced $2000 vaio notebooks. Not to talk of the 50" lcd rear projection in my bedroom that no longer works right.

No matter if the PS3 does well or not they're here to stay. Just like roaches, M$, and Intel. No amount of hatred will make them go away.

[Kingcarcas]

I hope Sony Electronics dies and Sony's game division
is swallowed whole by Nintendo

Shadow of the Colossus 2 and God of War 3 on Wii

Very true, if they actually buy them... I have read numerous articles that state that two every PS3 then is less then 1 game sold in japan.

Yup and people on ebay are even selling them at a loss

Sony should take the hit. $100 off will get more systems sold. Make money off the games and Blue Ray movies. I'd buy one if it's $100 off or $100 rebate even.

Trade in your PS2 and get $100 off at eb/gamestop

[eXceeded]

lol yeah when I went to America I saw soo many suckers buying Sony. You would never see that in UK, I was shocked... people spending top $ for average product and thats when I knew why Sony is soo c.ocky.