Sony: Price Doesn't Make or Break a Platform

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yeah it does. Same with games; you can claim price won't hurt sales all you want but if we don't feel its worth the price you just lost a sale. But i bet this is just an excuse to get the new thing they are pushing in the news.

Also that's totally why you kept the PS3 price the same...

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CAN WE GET RID OF THIS NONSENSE! Or make them READABLE!

Cheap tat sells incredibly well. If there's almost no financial risk, even things that get horrendous reviews get sales, just to see what's happening. Mediocre reviews for something cheap says value to the lay man, and excellent reviews and low cost is Portal. Are you sure he's in the business of sales or is he really just a "veblen good" spokesperson. "Luxury negates price!" ~bathes in raritanium and angels tears~

Price is very important, especially to me and my demographic, students. We undeniably make up a large chunk of your market. We like being able to eat once a day, I know that's a bit extravagant but it's a crutch I have come to rely on, nutrition.

..and that's why selling the NGP with a lithium-ion battery, another proprietary memory-stick - along with the usual full range of lacking media and network functions - isn't going to work, Tretton.

..oh, hold on, I'm getting some news on my ear right now. "Tretton is actually excusing a high price-point, regardless of features he has no idea will be included or not". Now this is a shocker, people, I never saw that one coming. Hold the freaking press.

I'm starting to get the feeling Sony hasn't learned their lesson. I just hope they don't go the way of Sega...

Sorry Sony, but that's completely wrong. I didn't even buy the PS2 until 2004 because that was when it finally dropped to 150 dollars for the Slim. 300 dollars is the sweet spot for a new launch console, and if you overstep the next one like you did with the PS3's insane launch price, I'll probably buy from Microsoft again.

As for the NGP, if it is only 250 dollars, that would be huge. However, I seriously doubt it will be less than 350, it has way too much gear packed in it.

Article:
Sony says that price isn't as important to consumers as the quality of a product.

Which is exactly why I didn't shell out for a PS3.

Wow. Talk about denial. From Sony, saying "People buy for value, not price" is pretty much saying "We're going to charge out the wazoo for this"

Corpse XxX:
I somewhat concur with Sony on this one..
But to a certain degree that is, fanboys will buy whatever brand they have always been following no matter the prize..

But the average non-hardcore consumer will usually buy the cheaper one, and this is a big group of people any company cannot afford to overlook...

In short, fanboys go for brand, everyone else go for prize..

I'd like to note that Sony fanboys may be few and far between, what with their other... behaviors being prevalent.

There's a lot of problems with how Sony is engaging the public. The high price point is one problem, the digital downloads are another, and the infrastructure that they use culminates to Sony having a hard time cultivating gamers.

At least with Nintendo, they try to slowly transfer people from one platform to another. When the Game Boy Pocket came out, it eased people to color. Then they ease people to Gameboy Advance ---> DS ---> 3DS. Yes the backwards compatibility helped greatly in assisting people in not feeling bad about upgrading a year afterwards. Here, Sony seems short-sighted in their approach. They are splitting their consumer base and forcing decisions that don't seem necessary.

I don't have faith in Sony's business schemes... They still have yet to put Scott Pilgrim on the PSP so they still don't have me as a customer.

Price certainly can be the deciding factor, especially in a purchase like a game console.

The thing is, unlike phones, people who buy from a new generation of consoles don't know that the next one will do what they expect or want it to. If Apple, say, screws up their antenna so that holding the iPhone "the wrong way" causes it to lose a big hunk of signal, that's unfortunate. But when all is said and done, their customers still have a nifty li'l phone and a whole bunch of apps and GPS and a camera and so on, and most likely with a faster processor and other neat tricks from what the engineers at Apple learned from the last version and hoped to improve on for the next. The bottom line is, it still does at a minimum what people have come to expect from an iPhone.

Conversely, about all the buyers of a new console know is that it will play games. They might know that it connects to the Internet; they might know that it plays Blu-Ray movies. What they don't know is if there will be games on the system worth playing. If the Internet service will work properly, or be easy to use, or have support and a community to make it worth using and worth suffering through any early labor pains. They don't know if a new media format like Blu-Ray will receive the support it needs and become an industry-dominating medium, or if it will fritter out and become the newest BetaMax. No matter how informed a customer might be, they can't predict the future, and the possibility of spending the highest price among the available options to buy what turns out to be an also-ran is a genuine and reasonable fear.

These things can then avalanche. The opening round of new-system purchases sends signals to the developers and publishers of games: is it worth struggling to learn the arcana of the new system? Is the potential payoff worth the time and money that go into generating high-definition content? Should we bother making games exclusive to one system to show off the best of what it's capable of, or should we play it safe and make a game that plays more or less identically on all the systems? Some of the earliest PS3 releases supposedly needed to sell two copies to every PS3 owner in order to make back their production investment.

The same can go for a system's online services: people don't use them because they're convoluted and empty, the company realizes that people aren't using the service and decides that's not where they want to spend their support and R&D dollars, closed circle.

Consumers may "respond to value", but value isn't necessarily evident on launch, and some aspects of that "value" aren't even developed until well into a console's life cycle. Ironically, by overestimating a console's monetary value a company like Sony can make it's real, long-term value diminish, or at least fail to flourish.

I'll stick with PC, it's so much cheaper.

I mean, come on, you need a PC anyway, may as well spend $200 on a graphics card. The money saved on games pays for any upgrades you need to do anyway :D

TheComfyChair:
I'll stick with PC, it's so much cheaper.

*shrug* well, we're about to see more soc-designs and multicore setups on smaller netbooks now. So that will definitively be an alternative. Better battery-life, more options, etc.

(Besides, anything that doesn't need to log into the PSN before dumping my entire play, PSN store and browse-history to a subcontractor in Africa is a plus.)

It is easy to say price isn't a big deal when your income is over 6 digits a year. With the fair chance that gas is going to reach a new high this year, I think this guy and others are going to be in for a rude wake-up call.
People do like shiny things, but most times the shiny things do get put on the back burner for more immediate necessary things.

Ridiculous.

Nintendo won by that model.

Sony lost.

End of story.

He obviously hasn't heard of the Wii. It was essentially a GameCube with internet and motion controls, and it sold faster than a tray of twinkies at fat camp at $249.

pandasaw:
I have to disagree. I bought the 360 and Wii before the PS3 because they were not as expensive. I eventually bought a PS3 when the price was not in the stratosphere.

You and the rest of the world.

Okay, so with this logic in mind Sony will then be making all its next-gen consoles at cost. Because price doesn't make or break a platform.

So this is pretty much their backhanded way of saying the NGP will be balls ass expensive, so suck it.

Yeah sure, consumers dont care about price at all. Totally not a deciding factor

When purchasing consoles, I tend to buy things that give me the highest effort/money to fun ratio. So Sony, if this proves to be another PS3 launch [I.E massively overpriced and with little to no games to justify the purchase] then you can forget me opening my wallet for it.

Gee, Free2Play games haven't been popular AT ALL.

Hey, Sony, there's some guys on the phone for you. Says their names are "3DO" and "Neo Geo".

"If you're passionate about something you find a way to go out and get it and gamers are very passionate"

You mean like pirating?...

Edit: Aslo, by their logic, it is the PS3's own fault it did not do as well. If price does not make or break, then it was the PS3 itself that hindered it.

HankMan:
Yeah the price doesn't break a platform.
Sony does that all by itself

http://instantrimshot.com/

OT: ... No, of COURSE price matters! Hell, THAT'S why all my friends and I bought an Xbox over a PS3.

All I can see is this thing will outshine the 3DS in price, then Sony'll wonder why the 3DS is still outsaling them left and right. Then they'll release a cheaper version, ignoring their speach about 'price doesn't matter'.

Anyone find it strange how Sony has to defend everything they make with some kind of odd public statement?

I have to say the reason I bought a wii in the first place was because it was so cheap. Yeah I know, I've learnt my lesson and bought a high end gaming PC now, but at the time it was more like "MOM MOM, I WANT A CONSOLE!", "Erm, which one, because we aren't made of money ya know." "YEAH, BUT THE WII IS ONLY £180!!!"..."Let us buy 50 son..."

It was a major selling point. Having a low price is always beneficial, otherwise people wouldn't do it. If I was Sony, I'd have them keep a moderate-high price, but have some sort of package deal, that meant you could get a lower price if you did something beneficial to the company or something. Quite frankly I'm surprised they haven't done something like, BUY OUR TV'S AND GET A 50% DISCOUNT ON THE PS3 or something along those lines...sorta makes sense to me...

And clearly you are no longer marketing to gamers, because us on our shit salaries can't even look at your consoles without cringing.

Maybe the second hand Psp's but that's about it.

If there are good games on it, I will consider buying it. There is nothing that interests me on the 3ds, I really hope that the NGP doesn't cost as much as this article implies.

HA! Yes it fucking does. I have the choice between an xbox 360 that cost's £150 or a ps3 that cost's £299...I think i have that choice down. If a brand new console starts off at £299 i understand, there will be people willing to spend that kind of money on it but 2/3 years down the line (I forget how long it is since the PS3 was released) If i go into a shop and it's still around that price I'm not even going to think about it.

Tom Goldman:

According to Sony Computer Entertainment of America president Jack Tretton, price just isn't that big of a deal.

Didn't the Neo-Geo fail because it sold for 700 dollars and each game cost around 200 dollars?

sony has this cockamamie idea that since people will(for god only knows what reason) will pay out the ass for I-pods pads and everything else "I" in nature. even if it costs a lot to make you'll make that money back by selling it cheaper, as it will fly off the shelves if it is an actually reasonable price to the CONSUMER not some ASSHOLE who gets a raise based on the sales revenue

Price isn't a big deal? Yeah...Maybe to you. Those of us who live in reality, on the other hand...

I'm sorry, wait. Excuse me?!

$299.00 for a PS3?

WHAT?

When the fuck did this happen??!?!??
They're like $700.00 in Australia! I knew we paied more for games but what the fuck man?

They were A THOUSAND dollars on release!

What the FUCK?

Also, say people saying smart phones are less than $200.00. iPhone 3GS is still like $1000.00 here.

What's wrong with our economy?

At least it's only luxuries that are rediculously expensive. I mean, I broke my hand last year and it cost me nothing to go in, get an xray and get a cast on it, then another xray to make sure it set properly. This was all my fault mind, I was drunk when I tried to split the ground by jumping into the air and punching the ground as hard as I could. (Ever watch Street Sharks?)

Sadly when you look at the speed of the PS3's sales right next to the 360, had it not been for the 360's year headstart the sales are pretty much neck and neck.

Jaded Scribe:
He raises an interesting point. While of course his position as PR guy means that obviously he's going to spin things for the company, I don't think he's entirely wrong. As another posted stated, look at Apple. People happily pay twice as much or more than equivalent PCs/laptops because they trust the quality of the brand.

I know youve been quoted before, but I'd like to add my own insight on what you've said.

You can't truthfully compare Apple and Sony. Apple has massive quality and the price on Macbooks has decreased a good bit now a days. Also, when we look at it, Apple can not outsell a cheaper laptop like Dell. People want quality, but they also need something that fits their budget. This is the ebb and flow of how the world works. People want the cheaper thing. It's why we still have dollar stores (bad joke).

Also I couldn't get a good sales figure on Apple because the Iphones were included in their sales. I was going to compare Macbook sales versus Dell Laptop sales in Q4 of 2010, but that didn't pan out.

Here's why I don't think the PSP2 (that's what it is) will do well starting off:
-we honestly don't know much about it, what games are being released for it, ect.
-the price for a handheld is $300, I could get a cheaper handheld with a 3D gimmick for $50 cheaper that already has some good games for it.
-if it is delayed on production/shipping because of the quakes, there could be a underproduction or shortage of the handheld which would only hurt Sony.

I can't even afford a 3DS right now, but when it drops in price I'll get it. Then, when I wait for a year or two, maybe the price of the PSP2 will drop and I'll get one.

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