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Tretton: PS3 is harder to cost reduce than PS2

Posted Jan 23, 2007 at 12:27AM EST by QJ Staff

Listed in: PS3 Tags: eBay, Game Informer, Jack Tretton, playstation 3 updates, PS2, SCEA

The power of the PlayStation brand name is something that Jack Tretton is already very proud of. Another thing that he is complacent about is the PS3's price tag. Recently, the SCEA honcho warned that it will be quite hard to cut the cost of the PS3 as it is expensive to create. Incidentally, this statement came in a few days after the report that Japanese retailers are slashing PS3 prices.

In an interview with Game Informer, when he was asked if the PS3 price cuts would be as soon and as low as that of the aging PS2, he reportedly said that "No...There's a heck of a lot more under the hood and it costs us more money to make it."

But being complacent about the price tag, he then followed it up by saying "I think the consumers that get their hands on a PlayStation 3 clearly see the value and not only want to buy one for $599, in some instances they're willing to pay ridiculous prices to buy one on eBay".

We could only wonder when and how much the PS3 price would go down. Do you agree with Mr. Tretton or do you have something else in mind?

Via GamesIndustry.biz

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Has this guy ever taken a PR Class?? You have a system that is being outsold by a machine name after a nickname for urine and the you tell the consumers that you don't want to lower the already insane price of the machine??? And saying all this with a smile??? Does Sony not know that the 360 costs 299 and 399? in a year or so the 360 will drop in price significantly and i imagine the wii will follow the gamecube and drop quickly as well.... This is almost as stupid as releasing a system in 1996 and then telling everyone that they don't need cd-rom for storage........ these companies sure know how to blow a sure market lead.

# LOL — Guest 2007-01-23 03:08

lmao PS3 = d00med for failure....

this reminds me of that 3DO system.... when it was first released in 1993 it's price was close to $700... 3DO's refusal to reduce pricing till almost the end of the products life were among the many issues that led to the platform's demise.... is PS3 heading in the same direction? well time will tell.... but from what I see right now... YES!!!!

LOL @ PS3

http://en.wikipedia.org/wiki/3DO_Interactive_Multiplayer

# The Components are More Expensive than the PS2... — Guest 2007-01-23 03:18

Basicly...He is Saying that the Final Price-Point of the PS3 after 5 Years Wont Be the Same for the PS2...Which is 130$.

The Article Suggests that there wont Be a Cost-Reduction...Wrong....There Will Be,But you Wont See a PS3 for 130$ Ever...As it Contains Far More Advanced Technologies than the PS2 [Which was the weakest system of its Gen] at its Time.

The Final Price-Point May be 230$ after 5 or 6 Years....And by the End of this Year...the Value of the Sku,s Would Probably Increase By a 100$ [A Game,Controler] Something Like That..

Well...It All Depends on Sales this Christmas,The Value of the Current PS3 packs Will Increase,And the Greatest Exclusives Will Be Coming...According to the Sales,They Will Judge Wether to Make a Price-Cut or Not.

# Hey, remember this Broken_Hero? — Guest 2007-01-23 03:20

http://ps3.qj.net/Study-says-PS3-to-lead-console-wars/pg/49/aid/78018

Broken_Hero: "...This means the PS3 may cost a lot at Launch....But Come next-year....It will Be the Fastest to Drop in Cost and Price.....The means Sony will be able to make the most significant Price-cuts....and sony in the end...is Leading Technology Company....[Cost-reducing is one of its main Professions].."

;)

# True! — Guest 2007-01-23 03:52

This is so true. Take the PS2 for intance, it cost a lot at launch (well not a lot) but it went down in price, do you want to know why.... its because of DVD! DVD was very expensive when the PS2 came out and was hardly used but a year or two later we saw DVD players drop prices from £300 to about £180! This will be the same with Blu-ray, as Blu-ray is why the PS3 is so expensive. Blu-ray is currently winning at a very high ratio worldwide of about 20:1 (including ps3's and xbox 360's HD-DVD add on). Give it another year or two and we could see the ps3 drop price by about £70-£100 (about $80-$110), due to lower price in manufacturing blu-ray diodes! The xbox 360 on the other hand will find it hard to make a price cut, due to the fact it is already using DVD and the biggest price cut they could possibly make on that is £7 ($15). So microsoft will have to start improving manufacturing on their hardware. As FanboyHater says, the PS3 will get a sudden price drop within the next 1 -2 years. Also I cannot see the Wii going down by much as it is already dirt cheap... it might go down by about £30 ($40)

# its true — Guest 2007-01-23 03:53

while microsoft and nintendo will be reducing prices sony will be struggling to keep their heads(which are firmly inserted in their asses) above water

# Ebay — Guest 2007-01-23 04:16

I can agree with alot of what he saying. You cant just cut costs and loss even more per console, thay are in this to make money right. But what i found shocking is his statement about ebay. Does he even do his own research. The PS3 is selling below retail, very close to retail, or not at all. Unless your in a teritory where it hasnt been launched yet, becasue i have seen imports on Ebay EU sell for higher than retail, but thats a very small margin.

# Price drop — Vietone 2007-01-23 04:19

There really is no need for a price drop. As long as sony starts advertising what you get in the system in comparison to the other consoles.

The Xbox360 doesnt have anything to come close to the 600 version of the PS3.

The 500 version is in the same competition as the 400 premium pack. The 600 version has no competition but its still selling like crazy.

Not to mention, Microsoft will soon be releasing the Xbox360 with the 120GB hard drive and you can only imagine how much they will mark it up. Going by retail standards. If they charged 100 bucks for the 20 GB HDD. Then the 120GB will be somewhere in the 160-200 range.

If you think for a second that the PS3 wont do better then the Xbox360, then check your numbers, in the same amount of time the PS3 sold alot more then the Xbox360.

# Read that again PS3Rider ;) — Guest 2007-01-23 04:25

Those are Broken_Hero's words, not mine.

It's clear from Jack's comments that the PS3 will not have the drastic drop in price Broken_Hero was predicting, but instead will have a steady drop in price over a long period, as seen with over consoles over the years. As for MS, I believe they started making a profit on every 360 sold since the last quarter 2006.

# re: Price drop — Guest 2007-01-23 04:38

The point that's been made over and over is that "what you get in the system" has no bearing on gameplay. The system has already sold to those who thought it was a good deal as a cheap blu-ray player. Now it's stacking up on shelves because the rest of the population doesn't think the price tag is worth it for a gaming machine.

I suspect the reason for the xbox360 sales increase in the US was because many people were waiting to see what the PS3 could bring to the market. The PS3 release was wanting, lots of potential buyers decided to get a 360 instead.

If sony wants a niche market they can keep the price up. If they want to get back to dominant numbers and not lose all their high profile exclusives they'd better start making up the 1 year sales gap with the '360.

# Hmmm — Guest 2007-01-23 05:01

"Not to mention, Microsoft will soon be releasing the Xbox360 with the 120GB hard drive and you can only imagine how much they will mark it up. Going by retail standards. If they charged 100 bucks for the 20 GB HDD. Then the 120GB will be somewhere in the 160-200 range."

Come on, if you spent a few seconds to think before you wrote you would realize that $100 for the 20GB HDD has remained the same since launch over a year ago. So I can't see where you get the idea that MS will introduce a 120GB HDD for the 360 and price it way above $100 because they decide not to lower the price of the 20GB HDD.

It's VERY likely that the price of the 20GB HDD will be lowered, with the 120GB HDD coming in at below $150, perhaps even as low as $100.

What you said seems more like wishful thinking Vietone. ;)

Still, we will know soon enough.

# shut your face tretton — ContrAss 2007-01-23 05:49

get your ass over to the forums and read wha the REAL customer complains about! It's not the console, it's not sony, it isn't even the cell! It's the mother*****ing price you stupid ass!

That said, it's still an amazing value for 600 dollars, but Sony does s.h.i..t to advertise what you actually get! and not to mention all the big titles being pushed back a few more weeks...and weeks.

# well brian — ContrAss 2007-01-23 05:59

put it this way, sony sold 1/10 of microsofts numbers. by spring Sony "Expects" to sell an additional 5 million. If this is possible, then they would have sold little more than half of what the 360 sold in a years time, including having Gears and ______

# Amazing value is a personal choice — Guest 2007-01-23 06:41

It's only an amazing value if you care about HD. Most people I've talked to care about fun, their wallet, and selection. Right now, PS3 lacks selection, lacks fun (except for a couple of exceptions), and hurts the wallet. I don't see this changing for at least a year. Hell....Xbox 360 is still lacking in decent amount of fun titles.... The question is whether Sony can survive a year or two before the demand and desire picks up and the selection of games finally gets to the point where there is something for everyone.

# A YEAR OR TWO LOL — Guest 2007-01-23 06:44

LOL @ PS3Rider not only did you misunderstand FanboyHater post but sadly you are the FIRST on here to mention the 360 (I thought the fanboys always do that?) and as usual anything do to with the 360 mentioned IS NOT FACT,i.e give it a year or Two and this and that might happen etc and every time you play up the Blu Ray (not even a mention of games in there) it just makes it seem more and more like the PS3 is a film machine first and a game console second.

# Dreaming — Guest 2007-01-23 07:07

The PS3 is outselling the 360 !!! I also saw a fairy in my back garden last night to,and that profit you like to think M$ is not making per console you better hope it dosent go into allowing bringing the new big drives at a real low price, (you dont really belive that M$ after seeing what is happening to the PS3 due to price are now gonna do the same do you? )

Yes it is now obvious that new hardware is about to be released (proberly March) because the download size on XBL has been raised from 50mb to 450mb.

# PS3Rider 360 and Wii — Guest 2007-01-23 10:18

The big N make a $40 profit already on each Wii so if they wanted to price cut they could right now. As for the 360 they have already improved the hardware coming this spring they decrease the nm of the core.

# I think 360 will win — Guest 2007-01-23 10:24

And of course M$ has RARE and the next release is Banjo-Kazooie 3 so if you want fun I think this maybe the title we all want.and of course it will be in HD

# ... — Guest 2007-01-23 12:15

I think the lower then forecasted sales is going to hold up price reduction. Also the fact that there is a much large loss margin in the PS3 then the PS2 is not going to help. The fact that the system sucks compared to it's competing consoles isn't going to help either. Seriously the Playstation brand use to be about being cool, now it's about being a fool. Only a fool would purchase the system in it's current state. Go buy something better with your money. 360 and a Wii for $50 extra.

# to dan — ContrAss 2007-01-23 12:30

nintendo delivers fun? like you said, it's a personal choice but i want to make myself alittle clear. The nintendo wii is selling like hotcakes and the attach rate is far superior to the PS3. However, can you name 2 exclusive games that were full length single player experiences? And sorry, Zelda was a port of the gamecube title. Red Steel? yeah, there's 1.

Seriously, fun to me is playing a satisfying single player game with engaging story and game play mechanics; I don't need a peripheral to make my games work. And yes, some people do want a DS experience on their tv, but where the DS was portable, the wii is not.

What you need realize instead of bashing Sony is that Sony already has these single player games lined up, while Nintendo is feeding you these niche games and slowly pulling apart those first party titles. Want metroid? wait 2 months. Want smash bros? wait another 5 months after that. It's certainly fun waiting for the real reason to own a wii...

And don't even get me start about PS3 value. Seriously, read cnet for yourself and don't let any biased site tell you what is and isnt good about it.

That said, i hate nintendo more than i do microsoft and I will always be disgusted with their tactics. I hope they enjoy the success of being "innovative" while real games slowly die by being smothered with *****ty grandma games.

# wtf? — Guest 2007-01-23 15:15

this is stupid, of course hes not going talk about lowering the price

you expect him to tell people that theres a price cut coming in 2 months, so people shouldn't buy the ps3 now, thats friggin retarded, why would he say something that damages the company he works for

I don't see a lot of good launch games for the ps3, even the ones coming out the next couple of months look kinda crummy so dunno what contrass is talking about

what value is there in the ps3, blu-ray and hdmi output??? obviously these features aren't enough to justify the price, why else would japanese vendors cut prices.

this interview with this tretton guy is an utter waste of time, technology always gets cheaper and easier to produce over time, as for how low the price will go is determined by how competitive sony wants to be, so right now they're keeping the price this high everywhere other than japan is because they want to milk every last person who's willing to pay launch price for it. watch them come out with some gimmicky bundles in a couple of months, prices won't be cut in NA, but they'll bundle some crappy movie and one mediocre game to make it look like the price went down

# d00d — Guest 2007-01-23 22:07

People that have Wii's are having a hundred times more fun then people with a PS3, that is a fact. There is no buts in that, the Wii is something that everyone can enjoy, you should try it sometime.

# Exactly God... ;) — Guest 2007-01-23 23:00

They Wouldnt Hint to a Price-Cut Now....Or it Will Hurt Sales..

Just Like Microsoft Said It Has No Plans for "Zephyr" 360 Right Now.....ao Consumers Wont Panic....But we Know that Its Coming.

# Zephyr still only a rumor — Guest 2007-01-24 01:39

Think you will find that the RUMOR ONLY Zephyr will only get a release when M$ have the RUMOR ONLY converter ready to allow older 360 to also have HDMI support.

# Price Comparison — Guest 2007-01-24 03:49

A lot of you are not looking realistically at the high end PS3 versus the high end Xbox 360. The $600 PS3 comes with a 60gb hd, wireless adapter and a Blu Ray player. The $400 Xbox 360 is lacking these extras. If you add the HD-DVD drive ($200) Wireless adapter ($100) you end up spending $700 and you're still short 40gb of Hd space and no HDMI port. So which is actually the better bargin?

# Have you been under a rock — Guest 2007-01-24 05:28

Wow, you regergitated the same BS that has been posted thousands of times. And every time it get this response. No one cares, save your breath for your school mates.

# PS3 is harder to cost reduce than PS2 — Guest 2007-01-28 15:38

Uhhh. No PHUCKING SHlT!

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