230°

Reeves: We Are Not Going Down In Price In Spring. Absolutely Not

David Reeves shatters the strong rumours that Sony plan to cut the price of the PlayStation 3 hardware in Europe this Spring and goes on to explain exactly why.

"No, we are not going to go down in price on PS3 – neither are we going to go down in price on PS3 in spring time either. Absolutely not, whatever you might have heard to the contrary. Our strategy is very much value added."

Darkseider5620d ago

Here's hoping he is not in the loop. The PS3 does need a price cut of some kind next year.

Meus Renaissance5620d ago

I'm pretty confident the President of the most profitable SCE division is in the "loop" about company plans. He was the one whose given us the most info in the past whereas other CEO's were just PR machines.

tplarkin75620d ago

You can't announce a Spring cut now, or nobody would buy the PS3 for Christmas.

FantasyStar5620d ago (Edited 5620d ago )

However, the economic recession is making it hard for a price drop cause banks are crunching down on the credit line. In order for companies like Microsoft to drop the price on 360: they open up a credit line, and hope that the investments will come back in console sales, software sales: typical business gambles. Not that I really care about price-drops really: I already own a PS3. I just want to put into perspective that price-drops for consoles is more than just "breaking even": it's also about borrowing money and cutting off studios.

Bladestar5620d ago

"In order for companies like Microsoft to drop the price on 360: they open up a credit line, and hope that the investments will come back in console sales, software sales: typical business gambles." with the exception that Microsoft does not need to open a credit line or borrow money to invest in new ventures since they have plenty of in hand cash at this moment...

This is why Microsoft still have in effect a buy back program to buy as much as an extra $40 billion worth of its stock.

http://news.zdnet.com/2100-...

Simply because their revenues and profits are greater than the money they are spending in operations and ventures.

Did you know that Microsoft even increase their dividends for their stocks last month? even during the economy... companies only do that when they have extra cash...

Companies do not always need to open a credit line... if they have cash they use it... and if they need more cash a company like Microsoft can sell shares that they purchased over time to raise money...

Microsoft is being doing this for a while... buying their own stock... this results on keeping their cash in hand amount valance, stock price stable and the company value increases... but more important... it put aside stocks that they can use in the future to raise capital.

Now Sony on the other hand.. does have to open credit because they have no extra cash on hand.

dan-boy5620d ago

their talking about raising the prices of their electrical goods because of market forces, yet, people are expecting them to lower the price of the most cost in-efficient product? blu-ray is a great feature in a console. but it has hurt sony in the pocket at a very bad time indeed.

Sarcasm5619d ago

If they really aren't going to cut the price of the PS3, then bring on the doom and gloom stories.

Because this time, those doom and gloom stories could be true.

Saint Sony5617d ago

Nah..of course Sony won't announce any price drops now that Holiday season is going on, that would be seriously stupid.

+ Show (4) more repliesLast reply 5617d ago
TOO PAWNED5620d ago

ok, ok but you better do it before 09 ends, otherwise war is over.

Meus Renaissance5620d ago (Edited 5620d ago )

"We’re relying on the fact that the industry will keep growing and WHILE we might have A SMALLER SHARE of the market we will have an overall INCREASE in sales. So the value added strategy is to continue for some years to come."

So they are willing to lose market share this generation, knowing that increased competition will drive the market more universally causing a higher profit rate potentially. So even with a smaller market share, they could potentially profit alot more than last generation.

But wouldn't a lower price PS3 increase the rate of market adoption of next-gen consoles? And wouldn't that mean an even BIGGER increase of sales in comparison to a smaller market share?

It seems they want to profit ASAP, but that's assuming PS3 sales will go up in 2009. I hope the games will be enough to make that happen, because that price wont be attracting crowds. But here's hoping it will see a price cut later in 2009.

ultimolu5620d ago

Meus, if they announce a pricecut in the Spring, people would wait for it and it would harm sales even further for the PS3. They will cut the price, but announcing it would be corporate suicide. :/

nonomori5620d ago

i agree with ulti

announcing it would hurt sales for the time being.
people would wait

Gothdom5620d ago

There's a big chance SCE will announce a price cut, but not before January. It would hurt christmas sales if they'd announce it now.

SilverKiller5620d ago

agree with ulti here.

i think that for the time being they are not going to make any official notification regarding price cuts because a lot of people is going to stop buying, they are messaging that the price is going to continue.

on Febrary i'm pretty sure there is going to be at least $50 dollar price cut or more.

there is already sing of parts getting cheaper, like the new blu-ray players on $200 plus creationg a new 45 nm proc ;)

Meus Renaissance5620d ago

The reason why I don't think its just an attempt of PR is that he goes into detail why they cant do a price drop. I'm not saying I wouldnt be surprised if they changed their stance, but currently their policy internally is that there will be no price cut and this is because they want to break even financially.

It's absurd to argue with that, simply because you want to see a price drop

Dread5620d ago

Meus

that is a very good point. I never saw it that way before. If true, it is still very risky for Sony. they loose market shares for profit. However, I thought that the higher the market share the higher the profits.Perhaps not all the time.

It could also not be true. I would not think that sony would anticipate to the masses when they would make their price cut. specilly on Christmas. Perhaps he is just saying that becasue they want poeple who want the playstaiton3 but are waiitng for the price cut, to give up an buy it at the normal price?

+ Show (3) more repliesLast reply 5620d ago
pp5620d ago

War was lost when Sony revealed that preposterously ugly looking ps3 to the Public.

Mikelarry5620d ago (Edited 5620d ago )

then when the NPD gets released you look at each other in amazement as to why your not ahead of the wii and 360. news flash sony you have to offer a price cut even if its not on the high end models the lower spec ones atleast, your competitors are rutless and all these silly mistakes your making will only make it hard for you to become top this gen unless youve given up hope in achieving that goal

PS: Home will not sell console's so you can forget that idea

ultimolu5620d ago

WHY WOULD THEY ANNOUNCE A PRICECUT NOW?

That would practically kill sales overall because people would then wait for the pricecut.

Use your noggin.

yourgodisdead5620d ago

Sony are planning on the PS3 to last ten years, so unless M$ are able to keep the 360 in the same league as it until the release of the PS4 then i believe sony will win this generation.

(excluding wii of course)

Anon19745620d ago

The PS3 is up this year close to 40% in the US. By contrast the 360, even with a price cut is currently 7% down for Jan-Nov. Sure the PS3 might came in 3rd in the US, but at least sales are growing. What's up with the 360 in the US?

At any rate, Sony isn't going to come out and say "We're cutting the price in the spring, no one go out and by PS3's till then!"
You know why? Because that would be dumb.

ultimolu5620d ago

darkride, give up.
People only care about a stupid console war rather than business.

Dread5620d ago (Edited 5620d ago )

@yourgodisdead

what is it with this theory that they are planning to support the system for ten years. That is bull.

they will support the system only if it is profitable to do so. If the playstaiton 3 is not profitable they will dump it way before ten years.

just because the playstaiton2 is still on the market does not necessarily mean that the same thing will happen to the Playstation.

you put way too much trust on Sony. remember it is a business just like MS. If their is money to be made they will forge ahead, otherwise they will dump their loses. I know it sucks son, but that is the plain truth.

i would never put my trust on Sony or Ms, or another company for that matter.

Only fanboys do that (not suggesting u r a fanboy by the way)

Dread5620d ago (Edited 5620d ago )

@yougodisdead

they could have a million plans aobut it and write tons of material about the alleged plan. the point is that if they do not make money they will not follow through.

i am not saying that they do not intend to do it, all i am saying is that plans change. money talks plans walk.

yourgodisdead5620d ago

I know that, that applies to all companies im just informing you of their ten year plan as from your first comment i assumed you were unaware they had one lol

Dread5620d ago

i am very aware of their alleged plan because sony fanboys cannot stop bringing this up to buffer their support for the system and state that it is "future proof"

i have always thought that argument was weak. I am just pointing out why.

Karum5620d ago

for Mikelarry

The US is not the only country where consoles are sold.

Thank you and goodnight.

-Karum

Mikelarry5619d ago (Edited 5619d ago )

i never said that the Us is the only country where console's are sold. im from the uk so i dont know what your on about

+ Show (8) more repliesLast reply 5619d ago
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40°

Interview on Fallout 4 with the Actor for Nick Valentine, Codsworth & Mr Handy (Stephen Russell)

Interview with Stephen Russell, Actor for (Nick Valentine, Codsworth, My Handy) in Fallout 4 which is a vast open world role playing game set in the apocalyptic wastes of Boston, the Commonwealth. The career goes further with other Bethesda games from Starfield to Prey to The Elder Scrolls V: Skyrim.

Read Full Story >>
gamerheadquarters.com
120°

Rocksmith+ Comes To PS And Steam In June

This looks like a great way to play.
Rocksmith+, the award winning music-learning app that teaches you guitar and piano with thousands of hit songs, is coming to PlayStation and Steam on June 6, and is available to wishlist now on both platforms.

420°

Report Claims Xbox Is Planning More Cuts Following Studio Closures

"The sudden closure of several video-game studios at Microsoft Corp.’s Xbox division was the result of a widespread cost-cutting initiative that still isn’t finished.

This week, Xbox began offering voluntary severance agreements to producers, quality assurance testers and other staff at ZeniMax, which it purchased in 2020 for $7.5 billion, according to people familiar with the company’s plans. Others across the Xbox organization have been told that more cuts are on the way.

Speaking about the closures more broadly, Booty said that the company’s studios had been spread too thin — like “peanut butter on bread” — and that leaders across the division had felt understaffed. They decided to close these studios to free up resources elsewhere, he said.

Game Pass has not seen the massive growth that Xbox boss Phil Spencer may have been hoping for."

Read Full Story >>
purexbox.com
just_looken14h ago

Sense it seems very few remember that human's were around before 2020 the next studio to close will be bethesda based no doubt on the history of.

Fallout 76
Elder scrolls online
elder scrolls blades mobile
fallout mobile
The vr versions of old games

Then you got starfield pissing out cash nothing to cover it.

I doubt tod's team or any sub team is making m$ cash they are no doubt on the chopping block for job cuts

If you can remember before 2020 even fallout 76 was made with over 4 studios.

purple1011h ago(Edited 1h ago)

pretty sure starfield coming to playstation 2024, nx gamer deep diving on the creation engine update in a recent blog, he seems to think, there is a lot of stuff developed to use on starfield for its Playstation release,

who will buy it though, ?? I think M$ has lost all good will now, after the Activision debacle, and now all these studios closing, people dont want to support them even if the game is half decent

Abear211h ago

Bethesda is the only studio to release anything noteworthy on Xbox. Take Bethesda out and they have nothing this Gen. Hifi Rush and Starfield are probably their two biggest hits.

-Foxtrot16h ago

"Speaking about the closures more broadly, Booty said that the company’s studios had been spread too thin — like “peanut butter on bread” — and that leaders across the division had felt understaffed. They decided to close these studios to free up resources elsewhere, he said"

So what you're saying is...you bought all these studios and you guys can't run them.

Jesus.

Inverno15h ago

Spread thin after firing over 2000 employees a few months prior. So basically they created the problem and their solution was to just fire more people. Absolute geniuses over at Xbox, of course can we even believe this to be the reason for the closures?

just_looken14h agoShowReplies(1)
Profchaos14h ago

Leaders can't run them hire more management create new roles don't shutter entire studios cause you can't figure out how to run them.

Unless the reality is this whole consolidation thing was really an excuse for IP harvesting

anast4h ago

He's lying. They are doing it for the shareholders.

Eonjay16h ago

Reports are suggesting that Game Pass will be getting a price hike soon and that Call of Duty may not be added to the day one offering. I honestly have a hard time believing this but it does beg the question why exactly did GP fail? I think the answer is that it just didn't get the growth that it anticipated. Jim was right but I wish he wasn't because at the end of the day, its gamers, devs and other front-line workers who have to absorb the blow for Spencer and team's miscalculations.

15h ago
NotoriousWhiz15h ago

And out of the ashes something even better than Xbox will be born.

Eonjay15h ago

Honestly as long as is not a situation where the industry has to contract in order focus wealth on a few people who are already trillionaires..

Barlos9h ago(Edited 9h ago)

It's already here and it was born before Xbox was even a thing. It's called PlayStation.

Tacoboto13h ago

I think 2022 killed the Series X.

2021 was a good year for Xbox though and maybe the best in a long long time, hardware and software and as a publisher. Halo Infinite launched to popularity, Forza Horizon 5 blew everyone away, Psychonauts 2 was so well received, Flight Simulator on console, Deathloop even on PS5 & PC.

But they followed that up with next to nothing. Then 2023 with Redfall, a disappointing Forza, Starfield, and 2024 leads with closures and layoffs. And some tweets reminding us Hellblade is days away.

The only disappointment with the PS5 is not enough Sony games. Xbox followed up no games with disappointing ones.

Einhander19722m ago

"I honestly have a hard time believing this but it does beg the question why exactly did GP fail? I think the answer is that it just didn't get the growth that it anticipated."

What?!?

Game Pass failed because from day one it was maintained by subsidization. Game Pass was never profitable, I mean, sure you can say that was because it didn't get the growth they predicted, but their predictions of it having "billions" of subscribers were completely ridiculous, to the point where saying that it didn't have fast enough growth is as completely out of touch with reality as their predictions.

+ Show (1) more replyLast reply 2m ago
Scissorman15h ago

For all the armchair executives who were calling for Sony to release its big-budget AAA games on PS+, the same exact thing would have happened at PlayStation. Game Pass has killed Xbox. Congrats.

shinoff218315h ago

There's not many of of us clamoring for Sony to do this because most of us understand it would kill Playstation. I'm sure there's a few but I've not seen alot of it myself.

porkChop3h ago

"the same exact thing would have happened at PlayStation"

But the same thing *has* been happening at PS. They've closed, what, 3 or 4 studios so far this gen? Laid off plenty of staff, restructured studios, etc.

BehindTheRows2h ago(Edited 2h ago)

PlayStation isn’t struggling. Xbox is. That’s the difference.

Sony also didn’t buy out multiple publishers with LOTS of studios and leave them in a state of uncertainty.

So, he’s absolutely right that Sony not following Game Pass in its entirety was smart as this very thing could have happened. Name a team, like Tango, who wasn’t struggling (like Tango) that Sony closed. Every closure was because of a studio who wasn’t pulling their weight.

rlow19m ago

You’re right about that. People on here will turn a blind eye and downvote because it’s Sony. Jim Ryan flew to the London studio and spent the day with them. The very next day they were all fired.

Calling out MS and not Sony. No matter how the studios came to be. Won’t make a damn difference to those who lost their jobs. In the end it’s all the same.

15h ago
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