03-31-2006, 12:16 PM | #51 | ||
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At $500 a pop, would they be taking a pretty big substantial hit on each machine?
If a regular Blu-Ray player costs $1000 for the consumer and $500 to produce, then wouldn't the PS3 cost at least $750 to produce? In that case, they would be taking a massive loss on each PS3 sold. Stores need to make a profit, so they would sell them to the distributors for say, $400 apiece, which is a decent profit for the distributors and stores (with a $500 MSRP), especially factoring in all the "extras" consumers will buy. At that rate, they would lose $350 for each PS3 sold. If they're trying to sell three million by Christmas, that's over a billion dollars in losses. There's no way that will happen. The only thing I see happening is releasing the PS3 without Blu-Ray like the Xbox 360. |
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03-31-2006, 01:36 PM | #52 | |
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They've built out the financial model. You wouldn't believe the amount of cash that Sony will make if Blue-Ray becomes the standard. It makes the losses on hardware for PS3 seem insignificant. The only way they can do that is to get it out in the PS3's. It will be $500 and Sony will stand to make huge profits if/when all media is created with Blue-Ray. |
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03-31-2006, 03:32 PM | #53 |
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I agree with everyone else about the final price. I posted earlier the CNET article about the component price and itt appears Sony believes that the blu-ray drive price will drop dramatically in the next year. If that is the case they might only be taking a huge hit on the first few million sold. Slightly off topic but still interesting is this article about how poor sales for the UMD movies for the PSP are. Some very negative comments from the movie people in there. This seems to be another attempt at making the game system do something completely different and it doesn't appear like the public is buying it. Sony should look hard at this because it appears they could be heading down the same road with the PS3.
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03-31-2006, 04:59 PM | #54 |
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big reason for the delay is not for games as much as it is with the Blu Ray technology.
BTW, all platform makers sell machines at a loss. backend money is from games and accessories, as well as game network, IE xbox live. |
04-05-2006, 06:08 PM | #55 | |
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Looks Like you're wrong, Kodos.. http://arstechnica.com/news.ars/post/20060405-6526.html PlayStation 3 European pricing revealed 4/5/2006 10:55:59 AM, by Ken Fisher The president of Sony Computer Entertainment France and vice president of Sony Computer Entertainment Europe, George Fornay, is talking price when it comes to the PlayStation 3. In a radio show with France's Europe 1, Fornay said that the PlayStation 3 will sell for between €499 and €599. Fornay acknowledged that the price may seem steep, but he emphasized that that price should be seen as inexpensive when one considers that the console will also play Blu-ray movies. Fornay also confirmed that Sony would be going for a simultaneous launch of the console in November of this year. (that's $600-$725 in US Dollars)
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04-05-2006, 06:27 PM | #56 |
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Wow. Just wow. I'm sure that MS is licking their chops and will be reducing the xbox to way undercut this. I think I am going to look into short selling some Sony stock...
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04-05-2006, 07:18 PM | #57 |
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Foz, the story I read at GameSpot didn't attribute this as an official stance, but rather what the President of SCEF personally believed the hardware would cost.
Seems likely, but I don't know if this is official by any means. |
04-05-2006, 07:22 PM | #58 |
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Even at that price, if the Blu-ray disc catch on, early on that will be a steal for a blu-ray DVD player along with the fact it's also a top of the line console system with a supposed pre-installed OS also.
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04-05-2006, 07:30 PM | #59 | |
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Why would I care about an OS in my console? |
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04-05-2006, 07:41 PM | #60 | |
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What's the disadvantage? If anything, it adds some possibilities. |
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04-20-2006, 04:57 PM | #61 | |
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From Cnet:
Quote:
Things just aren't looking all that good for Sony. With the PS3 coming how many people are going to buy a PS2 now? And still no final word one PS3 pricing. |
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04-20-2006, 05:11 PM | #62 | |
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I don't buy my consoles for playing movies. It's a nice function and all, but I have a DVD player and surround system for playing them. Blu Ray? Sounds nice and all, but I'm not a huge DVD buyer anyway and will probably be more than content to wait for the price to drop. Does Sony really expect me to drop $600 on a console with first generation titles when the Xbox 360 will be in the middle of their second gen titles with a library full of solid titles? I'm a geek. I buy every freakin new gadget I can afford. It's my drug. I have a 360, a high end PDA, a high end laptop, a powerhouse desktop, a PSP, an expensive cell phone, an HD TV and a high end surround sound system. Even I have to look at the bottom line on occasion and say "Is this REALLY worth it?" A 600 dollar price tag for the system (which would essentially be an 900 or more price tag after an extra controller, a couple of games and accessories) is going to cause me to ask that question. The answer is pretty simple. NO. |
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04-20-2006, 05:21 PM | #63 | |
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It appears I have a new hero... |
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04-20-2006, 05:32 PM | #64 | |
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But the reality is there is a large portion of people with HDtvs who want HD DVDs, your choices are $400 for a HDDVD player, or $600 for a PS3 with blu-ray and a gaming system. Not to mention there will be completely different titles for each player. Plus, nobody knows what the PS3 is launching with, so its a bit short-sighted to shit on their releases before theyve even announced any. |
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04-20-2006, 05:37 PM | #65 |
SI Games
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The reality of the situation as I see it.
Sony exec slips up and accidentally released the price of the PS-3 (cough) .. people react with shock and indicate they'd never buy it at that price. Fast forward to just before release, Sony release pricing details for the PS-3 suprisingly its much reduced from the 'slipped' price given 'x' months before hand, its still higher than most other consoles at release but people ignore that and concentrate upon how much cheaper it is than they'd expected and besides its 'not' that much more expensive than a BluRay player on its own ... so why not get one (if I remember right something similar happened with the PS-2 launch a few years back now) Last edited by Marc Vaughan : 04-20-2006 at 05:38 PM. |
04-20-2006, 07:14 PM | #66 |
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Why, that's almost like having someone at a large respected news organization claim it's going to cost $900 to start a panic and that Sony would release a much lower price and release date at E3 *gasps*
SI
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04-20-2006, 07:33 PM | #67 | |
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I said "if" No, we don't know yet. No matter what the price tag, the system probably won't have a lot with it. The standard is the console and a controller. Maybe they add a HD, though there are reports all over the map as to if it will even have one. Add in another controller ($50), a wireless hook up for their network ($100), their gaming network cost ($50), a couple of games ($120) and you are over $300 in accessories no matter what the starting cost is. If that starting cost approaches the $600 price point? Forget it. I'm not spending a grand on a video game system so I can have the joy of Blue Ray. If I get a hard on for a Blue Ray player, I'll but a high quality set top to go with the rest of my setup. We'll see where it really comes out at. We'll also see how the bundles will be priced. Then I'll make a decision. But I'm allowed to voice an opinion before I see all the facts. |
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04-20-2006, 07:43 PM | #68 | |
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Not to nitpick, but no you didn't |
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04-20-2006, 07:49 PM | #69 |
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I doubt most people will buy a PS3 because it has "Blu-Ray". Most people will wait out the Hi Def DVD wars to see who wins. Especially since the Big Six studios are divided on the standard.
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04-20-2006, 08:11 PM | #70 | |
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Maybe, maybe not. If I remember correctly, the DVD won the format wars "back in the day" because of the popularity of the PS2 in Japan, and the fact that it could play DVD's. Perhaps it might not be a motivating factor as much here in the states, but consoles have helped "win format wars" in the past and I'm betting Sony is hoping to do it again (though we see how miserably they failed with the UMD movies). Mark my words, consoles and porn will determine the winner of the next gen format wars. The trick will be to see which format most of the porn industry chooses... /tk
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04-20-2006, 08:16 PM | #71 | |
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What was the competing format with DVD? IIRC, the two competing formats were united by IBM's President to avoid a format war.
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04-20-2006, 08:25 PM | #72 | |
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I see the Blu Ray HD-DVD being more like the DVD-R and DVD+R. Both are digital and I'm sure someone will develope a player that plays both before too long. By the time average people want or feel like they need a super hi def format, you will be able to buy a player that plays both blu ray and HD-DVD. Last edited by Grammaticus : 04-20-2006 at 08:26 PM. |
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04-20-2006, 08:28 PM | #73 |
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Divx was a competing format IIRC. And I think that the bickering was mainly quelched before the release of the dvd players anyways.
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04-21-2006, 02:33 AM | #74 | |
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I agree with this wholeheartedly - I think Sony's backed the wrong horse in using 'Blu-Ray' as its big selling point, it worked with the PS-2 because DVD's were increasing in popularity and pretty much everyone knew they'd get one eventually. As it stands few people I know out of 360 owners even have a HD television and so BluRay is of nominal interest at best to them, to me the standard has the 'feel' of those VideoDisks or whatever they were that looked like LP's before the DVD came along. (I still think they or Xbox360 should have used a Tivo style program as the consoles main selling point that IS something which most people want and are increasingly getting these days, heck if people already have one then chances are they'd like their kids to have one also so they don't squabble over recording space or play backs ... I know I've been considering getting Sky+ (English equivalent) for my daughter as a birthday present for just that reason (didn't do it because of the monthly subscription/because I'm a tightwad .. but thats another issue ). |
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04-21-2006, 02:49 AM | #75 | |
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But isn't the purpose of the blu-ray beyond just DVDs? I mean, initially it's the selling point - but you're talking about up to 40 gigs(?) (supposedly like 12? at the start but ability to expand) of disc space for games. Even if it doesn't hit huge in the DVD market, it still makes the console potentially superior. |
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04-21-2006, 05:38 AM | #76 | |
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Errr considering most games don't fully fill a DVD currently I think BluRay isn't going to really be utilised in that manner to a great extent unless games go heavy on the HDTV video footage for fillers between levels and suchlike. Its also worth considering that distribution of games is likely to move further towards digital distribution within the next 5 years with it becoming very common place imho within 10 years, as such BluRay imho isn't really a contributing factor towards games as much as towards movies. (as always feel free to ignore my tuppence worth, my wife normally does ) |
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04-27-2006, 12:26 PM | #77 | |
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From cnet.
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So it appears that sony is planning on an operating loss of $871.8 million all from the PS3 launch. And I am sure someone can find a good shrinkage joke in there. |
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04-27-2006, 12:46 PM | #78 | |
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Little bit as to why Sony is so adamant about getting their blu-ray drives on the PS3.
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04-27-2006, 12:57 PM | #79 | |
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It's worth noting they're talking about $871.8m in losses by the end of the fiscal year (March 31) and 6 million units sold also by March. That'd translate into a loss of $145.30 on every system sold...but it's difficult to directly predict from that what the price of the system will be, because that figure could also take into account higher losses ameliorated by the sale of PlayStation 3 software. At any rate, that does make it seem likely that we're going to be looking at a $499-549 price point at launch for PS3. |
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04-27-2006, 01:34 PM | #80 |
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In other console news, Nintendo renamed their console, opting for the name Wii (we), as in Wii can't think of a good name for our system.
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04-27-2006, 01:35 PM | #81 |
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Revolution was a stupid name, dunno about the replacement however.
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04-27-2006, 01:36 PM | #82 |
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I actually liked Revolution, as 'I am going to go play with my Wii (we)' doesn't sound so hot.
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04-27-2006, 01:38 PM | #83 |
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dola
Needless to say, it's going to be the butt of alot of jokes. They may have just revolutionized the way Wii watch the system fail. |
04-27-2006, 01:41 PM | #84 | |
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04-27-2006, 02:33 PM | #85 |
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Well I thought it was obvious that Sony is pushing for Blu-Ray so it can try to 'force' the standard.
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04-28-2006, 10:23 AM | #86 | |
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OK one more story. I promise this will be the last one I post before the real price is announced but for some reason I am just really interested in this story. From forbes:
Quote:
So this is the lowest figure that we had heard and would mean that sony would be selling the console at less than half of what they will initially take to produce. Really though I just don't think they have an alternative. I just don't see people buying a $500 console when the Xbox will have more titles at a much lower price at that point. Anyway, that last line I also find very interesting. "Long term vision for the PS2"? You mean it has a future that doesn't involve the scrap heap? |
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04-28-2006, 11:00 AM | #87 | |
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Sony's big on "ten-year console life cycles." They made a big deal about it with the PlayStation and they've been talking about it with the PS2 since at least 2003. Isn't going to amount to shit because third parties won't develop for it forever - at least the ones aiming at adult gamers won't - but it looks nice in a press release. $400 with a 60 gig HDD and a Blu-ray drive tells me one of two things. 1) They're serious about pushing Blu-ray. 2) Either Microsoft's North American success has them worried to the point where they're not concerned with the money they're going to lose initially, they just don't want to see their market share erode further when people are already iffy over $400, or else they're taking it seriously when people say "I don't give a damn about the Blu-ray player. I'm buying this for games, and it better not exceed {price point here}." Maybe both. |
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04-28-2006, 12:15 PM | #88 |
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Excellent news for Sony fans. Loyalty might waiver some if the price point would have been $500+. With a $399 price point including Blu-Ray, you could buy the PS3 and not do anything other than watch Blu-Ray DVD's and still have a great piece of equipment. We'll obviously hear more about this given that E3 Expo is just around the corner.
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04-29-2006, 12:11 PM | #89 |
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C'mon, guys- who really thought the PS3 would open at a price higher than $500? All you've been posting so far is rumor and "analyst" guesses. But, c'mon, $900 just doesn't pass the smell test. Heck, anything over $500 doesn't pass the smell test. It just wouldn't sell and Sony needs this to sell well so that they can get good traction with Blu-Ray.
SI
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04-29-2006, 07:02 PM | #90 |
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Still there is a difference between $500 and $400 I agree that anything over $500 would be crazy but I think if it starts out to $400 a lot more people here would be happy.
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04-29-2006, 07:09 PM | #91 | |
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That's all very true, but I'm sure Sony, as Microsoft did, will be carefull weighing how many they'd sell or if they'd rather have $100 per unit. Even with just a million units sold the first year, that's a $100M dollar difference and they'll likely sell more than that. SI
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05-08-2006, 09:20 PM | #92 |
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November 17, with a 20GB hard drive for $499. With a 60GB hard drive it'll cost $599.
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05-08-2006, 09:25 PM | #93 |
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Source?
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05-08-2006, 09:26 PM | #94 |
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05-08-2006, 09:35 PM | #95 |
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499? Damm..watch this thing el tanko
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05-08-2006, 09:36 PM | #96 |
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Yikes... by November, PS3 will be like $200 above the XBox 360 Premium (which is rumored to drop price by $100 in October)!
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05-08-2006, 09:37 PM | #97 |
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Yeah, that's way too pricey, IMO.
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05-08-2006, 09:39 PM | #98 |
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I'll wait until the price goes down to pick one up.
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05-08-2006, 09:57 PM | #99 |
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I'm very much anticipating this release. I don't know if I am going to get it myself, but I want to see what kind of numbers it pulls in from others.
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05-08-2006, 10:46 PM | #100 |
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No force feedback for the controllers, it messes up their sensors. I don't really care, I find that annoying anyway, but still.
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