So that's one PlayStation 3 – will that be cash, credit or your firstborn?

The warm reception given Microsoft’s Xbox 360 in the states apparently hasn’t given Sony cause to reconsider the PlayStation 3’s reportedly dizzying price point (see “PS3 to launch with indentured servitude purchase plan“). In an interview with Toyo Keizai this week, Sony Computer Entertainment president Ken Kutaragi again said that the PS3 demands a financial sacrifice of its owners.
“Whether consumers think a product is expensive or cheap all depends on the balance between its appeal and price,” Kutaragi told Toyo Keizai. “Our ideal [for the PS3] is for consumers to think to themselves, ‘OK, I’ll work more hours and buy it.’ We want people to feel that they want it, no matter what. When Nintendo was selling its 16-bit machine at around 12,500 yen ($114), we sold the first PlayStation at 39,800 yen ($364),” continued Kutaragi. “The press was saying that it was expensive, but it was a huge hit. It’s the same thing with the PlayStation Portable from last year. The Game Boy Advance is a same handheld gaming machine, and it costs less than 10 thousand yen ($91). On the other hand, our PSP had cost 25,000 yen ($229). But people lined up overnight to buy it, and it sold out on the day of its launch. It all depends on whether people want it. Of course, I’m confident that the PS3 is a product that people will definitely want.” Sony better hope Kutaragi’s right, because according to some the company’s headed for a loss of Microsoftian proporation on its PlayStation 3 (see “Xbox 360 blamed for irritable bowel syndrome outbreak at Sony Computer Entertainment” and “Microsoft launches aggressive new plan to lose more money on Xbox“). Analysts at Merrill Lynch Japan believe the PS3 will retail for $399 in the states, nearly $100 less than it costs to manufacture. If that turns out to be the case, Sony could suffer a loss of more than $1.18 billion in the first year of the PS3’s release.

 
 

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  • JIm

    If Sony desigbs the PS3 like they did PS2 count me out

  • JohnRoberts

    Hmmm.. could be a ploy to distract us from the root-kit problem. I just read Bruce Schneier’s current newsletter, finding fault with the anti-virus companies for not stopping the root-kit cold in it’s tracks. It opened my eyes.

    Humor aside, I think they should price it anyway they want; let the chips fall where they may.

    ON the other hand, would this violate anti-dumping laws?

    -JR

  • Can’t wait for my discounted HD Blue-Ray video movie player… No intention to ever play games on it…

  • I THINK THE PRICES OF NEW GAMING HARDWARE ARE JUST GOING INSANE, IT’S NOT JUST THAT THE BUYER WANTS IT ENOUGH SO THEYR’E WILLING TO PAY AN ARM AND A LEG TO HAVE IT, IT’S THAT THERE SHOULD BE A RATIONAL TO WHAT THE RIGHT PRICE SHOULD BE OR THERE WILL BE LESS AND LESS BUYERS. JUST TAKE THE CASE OF LUXURY AUTOMOBILES, THERE’S BUICK AND THERE’S BENTLEY, BOTH DO THE SAME THING, BUT SHOULD I BREAK MY BACK TO HAVE A BENTLEY JUST BECAUSE I WANT IT SO HARDLY?, ISN’T IT SOCIALLY AND MORALLY RIGHT TO PAY SO MUCH MONEY? HOW MANY MORE CARS ARE SOLD BY BUICK THAN BY BENTLEY? BESIDES MANY OF THE BUYERS ARE KIDS THAT CAN’T AFFORD THEM UNLESS THEIR PARENTS HAVE TO DO A BIG SACRIFICE.

 
 
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