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View Full Version : Sega: Price Cuts Paramount For Sony's PS3 Strategy



JKKDARK
July 2nd, 2007, 23:57
via Wired Blogs (http://blog.wired.com/games/2007/07/sega-price-cuts.html)

Masanao Maeda, corporate director of Sega, told Reuters today that as more and more PlayStation 3 games go multiplatform (when they're not disappearing entirely), aggressive pricing is going to need to be a cornerstone of Sony's strategy.

"Name brand, price and software are what count. Since it's getting difficult to make software availability a differentiating factor, superior marketing and pricing strategy will be the key for Sony."

This is certainly a debatable point. Yes, he's right about the fact that Sony is going to have a hard time making their way simply on the strength of their software catalog. Better pricing would certainly help, although one really must wonder if it's even mathematically possible at this point to have a "superior pricing strategy" when your opponents are Microsoft and Nintendo.

Not to mention the fact that even if they lower PS3's price by $100 at E3, well, uh, the PlayStation 3 was already $500, earlier this year. And it was such a negligible difference, in the grand scheme of things, that it didn't reach enough buyers for them to keep the lower-end SKU around. So we already have pretty solid evidence that a $100 price cut won't do anything.

Perhaps they'll lower to $480 to match the price of the Xbox 360 Elite?

mcdougall57
July 3rd, 2007, 01:02
Perhaps they'll lower to $480 to match the price of the Xbox 360 Elite?

even if they do i wont buy it because it would be the same price as an elite and i would prefer to buy the elite.

i doubt they will lower the price anytime soon because they already lose money on every console sold

jdnation
July 3rd, 2007, 04:46
The price hasn't really made a big difference. PS3 sales match those of the 360 when it was initially out, even though it costs more. Everyone rejected the lower priced PS3 just as many still prefer the premium 360. A price drop could help but that will just provide a spike in intial sales and then peter off...

Dropping it to $400 would be the only way to make a more noticable difference over the lower end SKU of $500 and then MS will simply drop the price of their console. If Wiis continue to sell through at their price range Nintendo won't budge. Though with Sony recently dropping the price of the $900 blu-ray player to $500, it's conceivable that they can drop $200 from the price of PS3. Sales will be made up from PS2 consoles, games, PSP sales, PSP game sales and blu-ray movies as well as PS3 games. Not to mention all their other sucessful divisions.

F9zDark
July 3rd, 2007, 06:09
The PS3 has many features over the Elite, and a price cut to counteract it, can certainly help the PS3 now, when it really matters.

Even though the PS2 is still successful today, that is because it built a sturdy foundation to EARN that success 5+ years later.

The PS3 NEEDS that same foundation to be successful in Sony's "10 year plan".

If Sony were to drop the price to be lower than the Elite, even if by 20 or 30 dollars lower, and send a fusillade of advertisements on TV, newspapers, and magazines stating the benefits of the PS3 over the Elite, they can thwart would-be Elite buyers.

But a price cut is NECESSARY. Sony can possibly save next year's game lineup from going multiplatform if they act NOW.