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 PS3's $399 Price 'Simply Too Steep,' says Analyst, What do you think?

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Dinghydoggy
post Oct 9 2008, 05:04 PM

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QUOTE(gundamalpha @ Oct 9 2008, 04:56 PM)
The last time I checked, MS are selling their consoles close to break even after taking in the replacement into consideration. And all those money paid for developers? There's no evidence suggesting this except in GTA4's case, the rest are just rumors.

And the whole point of the thread isn't XBox 360 vs PS3 to begin with, it's the perception of the $399 price tag as being steep. And majorities of those perceiving this way aren't you and me, or many other gamers who have bought one, they are the parents and non high tech gadget savvy gamers.
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The parents and non high tech gadget savvy gamers will just go for the cheapest in the list then. Cheapest console, cheapest handheld, etc. The majority of them won't really research and forecast and etc. etc. that most of us do when we're making serious purchases like consoles. In that case, then yes, price is the issue.

For people who put in a bit of thought and effort into which console they're buying, initial price of console does very little to sway their judgment, I think.

For Malaysia, though, I know most people don't get PS3s compared to X360s or even Wiis 'cause of the simple fact that PS3's BD games aren't available for RM5.
gundamalpha
post Oct 9 2008, 05:57 PM

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I can't argue with you on the piracy issues in Malaysia more, that's a sad reality. But you have to look beyond the Malaysian community in terms of the price issue. Even if all those who are interested in getting a PS3 added up in our country, how many would that be? Our market is quite insignificant to be honest.

I have come across many foreign gamers who say nay to PS3 because of the price, games issues aside. And in foreign countries, parents do have a big say in this industry believe it or not. I do believe most of those who have the knowledge and interest have been captured, those who haven't decided yet are the main targets for this analysis. And no surprise for those who haven't bought one won't be interested until further price drop is announced.
neogeocdz
post Oct 11 2008, 11:59 PM

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QUOTE(Dinghydoggy @ Oct 9 2008, 05:04 PM)
The parents and non high tech gadget savvy gamers will just go for the cheapest in the list then. Cheapest console, cheapest handheld, etc. The majority of them won't really research and forecast and etc. etc. that most of us do when we're making serious purchases like consoles. In that case, then yes, price is the issue.

For people who put in a bit of thought and effort into which console they're buying, initial price of console does very little to sway their judgment, I think.

For Malaysia, though, I know most people don't get PS3s compared to X360s or even Wiis 'cause of the simple fact that PS3's BD games aren't available for RM5.
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I agree with gundamalpha. nod.gif
Yes. Piracy issue is a reality here in Malaysia.
And yes, Malaysia is indeed an insignificant market. Wii have won the console race, not because Malaysians are buying it for pirated games.

I think the numbers says it all. PS3 is so far the worst selling current-gen console, SONY PR can spin and twist the stories but fact is fact - PS3 sold the least. Many so-called analysts are trying to make sense on the reason, and some think Price is the reason. Given this economy climate, high price will be a turn off for consoles buyers. Who cares if your expensive console can fly u to moon, when u are falling back on mortgage payment?

I remember when i first see the PS3 launch video in US, "3DO" comes to my mind immediately. But PS3 will not end up like 3DO, PS3 is a well crafted graphic beast with the backing of industry behemoth SONY, they still have a lot of times and money to get things right. But if u r following SONY news, they do not make stellar profits recently, and strong YEN & weak USD has really hurt them. I doubt they can cut the price further, that can be a blow to their bottom line.

I agree PS3 library is getting better. But it still has the weakest library among the 3. While PS3 is improving, 360 & Wii are not standing still. SONY seems to harbor hope that LittleBigPlanet will save PS3. I think the game will sell tonnes, and will sustain PS3 viability, but it seems too late to win the console war. Well lets look back into history. SEGA used to hope that "Nights into Dream" can be the Saturn savior, we all know it didn't. Same goes to "Shenmue" for Dreamcast.

Also, i doubt MS really throw big money at developer for game defections, reasons-----

First, it was not discussed in any of the MS Q-End financial results conference call with the press (I might be wrong). When discussing the Game business, serious media (Bloomberg, Forbes etc) simply did not ask the question probably maybe because ---- It is not true OR amount is insignificant.

Second, 360 have larger install base. Releasing games for 360 makes perfect business sense for developer, why is MS so dumb to throw big money at them?
Zeliard
post Oct 12 2008, 12:28 PM

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"Also, i doubt MS really throw big money at developer for game defections, reasons-----"

1. US50 million was given to Rockstar for 360DLC

2. SCEA president Jack Tretton said Sony will not pursue exclusivity. "We don't buy exclusivity. We don't fund development. We don't, for lack of a better term, bribe somebody to only do a game on our platform. We earn it."
http://kotaku.com/gaming/gag-order/scea-pr...vity-274862.php

3. M$ paid Sony for SE's breech of exclusivity. The article was published in Kotaku, but was very quickly taken down.

4. Capcom's statement. "Exclusives are driven by gameplay functionality and cost. If you get your gameplay functionality and costs right, exclusivity can work."
http://kotaku.com/gaming/notag/capcom-stil...ives-331554.php


There are many many others around, do google for it. I came across many articles before.

This post has been edited by Zeliard: Oct 12 2008, 12:29 PM
gundamalpha
post Oct 12 2008, 01:24 PM

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QUOTE(Zeliard @ Oct 12 2008, 12:28 PM)
"Also, i doubt MS really throw big money at developer for game defections, reasons-----"

1. US50 million was given to Rockstar for 360DLC

2. SCEA president Jack Tretton said Sony will not pursue exclusivity. "We don't buy exclusivity. We don't fund development. We don't, for lack of a better term, bribe somebody to only do a game on our platform. We earn it."
http://kotaku.com/gaming/gag-order/scea-pr...vity-274862.php

3. M$ paid Sony for SE's breech of exclusivity. The article was published in Kotaku, but was very quickly taken down.

4. Capcom's statement. "Exclusives are driven by gameplay functionality and cost. If you get your gameplay functionality and costs right, exclusivity can work."
http://kotaku.com/gaming/notag/capcom-stil...ives-331554.php
There are many many others around, do google for it. I came across many articles before.
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1. It was announced, it's fact.
2. He can say whatever he wants.
3. If it was fact, why was it taken down?
4. They are saying they have better budget allocation and understanding each console's strength and capabilities than its competitor.

I'm not trying to defend anyone nor opposing anyone, but unless statements were made like in point 1, anything else are base on assumptions and interpretations. Honestly, if MS really did pay for those exclusivity, then they are doing it for the good of their customers. Sony could have done the same for the PS3 owners, anything they said only reflects they are unwilling to spend more for the good of their customers.

"We don't buy exclusivity. We don't fund development. We don't, for lack of a better term, bribe somebody to only do a game on our platform. We earn it." The way I see this statement is "We won't spend for exclusivity. We care for our profitability only. If someone else want to buy exclusivity then go ahead, we are not going to spend to improve our situation as we have enough fan base. Consumers are oblige to buy our stuff."

I repeat, I'm not biased. If that's the way Sony wants to market their products so be it. At the end of the day if they could get the right amount of games for PS3 I'd still buy it (which I already did). MS on the other hand, if they want to spend money to expand their sales, I couldn't see anything wrong with it either. Competition only benefits consumers in the end, unless one company bought over another to kill off the competition by being the single console manufacturer.

This post has been edited by gundamalpha: Oct 12 2008, 01:25 PM
Mgsrulz
post Oct 12 2008, 01:30 PM

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sony said they would re evaluate buying exclusives.
not sure of its progress,though hmm.gif
neogeocdz
post Oct 12 2008, 03:25 PM

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QUOTE(gundamalpha @ Oct 12 2008, 01:24 PM)
1. It was announced, it's fact.
2. He can say whatever he wants.
3. If it was fact, why was it taken down?
4. They are saying they have better budget allocation and understanding each console's strength and capabilities than its competitor.

I'm not trying to defend anyone nor opposing anyone, but unless statements were made like in point 1, anything else are base on assumptions and interpretations. Honestly, if MS really did pay for those exclusivity, then they are doing it for the good of their customers. Sony could have done the same for the PS3 owners, anything they said only reflects they are unwilling to spend more for the good of their customers.

"We don't buy exclusivity. We don't fund development. We don't, for lack of a better term, bribe somebody to only do a game on our platform. We earn it." The way I see this statement is "We won't spend for exclusivity. We care for our profitability only. If someone else want to buy exclusivity then go ahead, we are not going to spend to improve our situation as we have enough fan base. Consumers are oblige to buy our stuff."

I repeat, I'm not biased. If that's the way Sony wants to market their products so be it. At the end of the day if they could get the right amount of games for PS3 I'd still buy it (which I already did). MS on the other hand, if they want to spend money to expand their sales, I couldn't see anything wrong with it either. Competition only benefits consumers in the end, unless one company bought over another to kill off the competition by being the single console manufacturer.
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@Zeliard --- My apology, I slip out the DLC issue. Also I actually came across lots of "MS paid for exclusive" articles on Gaming websites, but i did not believe it entirely.
@Gumdamalpha --- your reply made sense dude, no fear, logical ppl won't label u fanboy.

1. I still insist in my disbelieve that MS "paid big monies for game defection". That means, Namco & Square are not likely to have brought games to 360, because MS paid them off. I view their moves as very logical business decision to reach a wider audience --- to sell more games. When Square Enix announced that FF13 will be published on 360, their shareholders re-act positively, and their share price went up in the second day. From there you will see, shareholders think moving games to 360 is a good business moves. I doubt ONLY Square Enix shareholders think this way, and i seriously doubt MS paid Square Enix in this case. Why would MS paid Square Enix to do something that have bigger benefit to SE than MS? Not logical.

Bloomberg: Square Enix Shares Gain on `Final Fantasy' Release
http://www.bloomberg.com/apps/news?pid=206...rnU&refer=japan

2. If SONY come out and start buying exclusives, i doubt they would go very far in helping PS3. Money spend on developing 1st party games, or buying a good developer, would be viable choices over giving ang-pow to developer. For a start.... SEGA, Tecmo might be good targets, but i doubt that would happened as well, given SONY mediocre business performance recently, the management really do not have much goodwill around to justify a risky and expensive acquisitions.

3. If SONY does buy exclusives, it would be interesting to see how they would answer their shareholders for spending money on something they are likely to have minimal management control, and is risky because the exclusives in question might not have helped PS3 platform. So Jack Tretton is right, he should not have started throwing "ang-pow" at developer to do exclusives --- Shareholders might fired him if it failed!

4. CAPCOM's statements on exclusives are very logical, and i would be happy if i am a shareholders. RE 5 on 360 & PS3, Monster Hunter 3 on Wii, all seems to balance platform strength & CAPCOM's resources well.

This post has been edited by neogeocdz: Oct 12 2008, 03:47 PM
lapaq
post Oct 12 2008, 06:00 PM

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Yup....PS3 will again finish last in terms of sales this holiday season....

Should Sony reduce sales price....Considering the price of the other two consoles (expecially 360) I'd say that SONY really need to reduce their console price offering...to USD 320-350 range at least...

If not then PS3 will be lagging behind 360 in terms of sales ans SONY will be losing lots mo 3rd party exclusives since the install base just isn't big enough for 3rd party to makes games for it...



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