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October 18, 2007 8:27 AM PDT

Sony cuts price on PS3--is it enough?

by David Carnoy

The Spider-Man 3 Blu-ray will ship with the $400 PS3 on November 2nd.

(Credit: Amazon)

Way back on September 12, we reported on rumors that Sony would be releasing a $400 40GB PS3/Spider-Man 3 Blu-ray bundle for the holidays. The not-so-secret new system has now been officially announced by Sony, with a November 2nd launch date in the North America. At the same time--effective immediately--the current 80GB model will be available in North America for $500.

In Sony's press release, CEO Jack Tretton is quoted as saying, "We're pleased to offer the consumer a lower price point without sacrificing the core technology components that make PS3 the most advanced high-definition entertainment system available. Every PS3 comes with a Blu-ray drive, HDMI output, an integrated Wi-Fi connection, Cell Broadband Engine and a built-in hard-drive." As previously reported, however, the new 40GB PS3 won't offer any form of backward capability with PS2 games. (Read John Falcone's earlier post for a full report on the issue).

As I've said before, if Sony hoped to compete with the XBox 360 and Wii during the holiday season, it had to hit the $400 price point. Some readers scoffed that the inclusion of the Spider-Man 3 Blu-ray wasn't exactly a big selling point, considering the movie sucked. Also weighing heavily on Sony is the lack of a true breakout (exclusive) title that gives fence-sitters a little more sense of urgency to buy the system.

What do you think? With the XBox 360's reliability problems, is $400 the magic price point for the PS3 and its built-in Blu-ray player? Or are the games what matter in the end (i.e., Halo 3, BioShock, and the upcoming Mass Effect)?

Originally posted at Crave
Hunkered down in New York City, Executive Editor David Carnoy covers the gamut of gadgets and writes his Fully Equipped column, which carries the tag line "The electronics you lust for." He's also the author of "Knife Music," a novel. E-mail David. Follow David on Twitter.
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Add a Comment (Log in or register) Showing 1 of 3 pages (66 Comments)
I think sony hit a dinger with this one.
by afrry3 October 18, 2007 8:53 AM PDT
I think this is the drop everyone's been waiting for. A couple more games and they're in business. Can anyone say MGS4 and Killzone 2?
Reply to this comment
Can anyone say Halo 3!!!
by entrenedor October 18, 2007 9:56 AM PDT
Is it enough? - nope
by landand October 18, 2007 9:07 AM PDT
I had planned on buying a PS3 for a long time now, but the recent moves of Sony have dissuaded me from doing so. The lower price is nice, but losing PS2 game support is not acceptable to me. Half the games I was planning on playing with it were PS2 games. And with Blu-Ray player prices inching downward (along with the PS3 not offering full support for the newest audio formats and lacking the ability to use an IR remote), I'm going with an Xbox 360.
Reply to this comment
True, the games matter in the end
by Mobius914 October 18, 2007 9:12 AM PDT
After all, the PS3 is a games machine (albeit very media-capable) and only time will tell as developers try to take advantage of the "powerful" Cell. Cant wait to see Gran Turismo 5 in glorious HD...
Reply to this comment
I am not sure what...
by stuntman_mike October 18, 2007 9:23 AM PDT
landand meant when he or she said that the PS3 doesn't support the newest audio. The PS3 supports Dolby HD and DTS HD, the XBox (including the Elite) does not. Were you talking about something else?
Reply to this comment
I could be wrong
by landand October 18, 2007 9:28 AM PDT
(So I realized I was a little wrong in that it can process TrueHD but not stream it) but the last time I checked it didn't support processing or bitstreaming of DTS-HD. I could still be wrong about this, though.
Too little too late?
by Chwith October 18, 2007 9:24 AM PDT
The $400 price point is a big step but there are still problems.

1. No "killer app." Sony needs a system seller game for PS3 and so far that hasn't appeared.

2. No Backward compatability. It's software emulated, what's the point of leaving this out? The code has been written.

3. Goodwill. Sony has gone a long way toward destroying the goodwill of thier user base. (The $600 dollar console, the bait and switch "price drop")

I'm not saying that Sony can't catch up but it's gonna be an serious uphill fight.
Reply to this comment
XBOX 360 is extending their time in the lime light
by D3vr04 October 18, 2007 10:19 AM PDT
I owned a 360 since 2nd shipment that Nov.2005,and still works like a charm. still squeezing gameplay out of oblivion, beat GearsOW on insane, the masterpiece Bioshock, beat COD2 on highest difficulty and traded it in, traded in NBA2k7(should have kept it since 2k8 isn't a leap), beat and traded in DOA2, beat Halo3 on legendary and owning fools on Live every day. Now waiting on Mass Effect,Lost Odessey,COD4,GH3 or Rockband(not sure),GTA4,Ninja Gaiden3, plus many more excellent titles in the works that will also be on ps3 and 360. (Wishing for true next gen SSX,Killer Instinct,Rivial Schools, and Street Fighter,(come on EA Big,RARE, and Capcom)).
PS2 is what made owners interested in ps3, not the ps3 games...at least not the launch and near future titles. Backward compat. is a must for the third iteration of psx.
Of course I am waiting on MSG4 and FFXIII, before I buy a ps3, but man looks like i'll be waiting longer because I want the version that can play the God of Wars, FFXII, and RE4. I have to save more cash. its not easy to just plunk down $500+.
gosh, I supposed that's how they'll make more money, buy 'forcing' hardcore gamers to purchase the expensive model.
Reply to this comment
well, I have the best of both worlds... but...
by cmargary October 18, 2007 10:27 AM PDT
I don't know what lanland wants to say about the best audio because it has what the guy below me said... but the ir is bad when wanted to make a universal conroller like the harmony but have a bluetooth controler anyway for bluray player...

Anyway the 2008 is the year of the PS3, if now is selling imagine with the games it will come, metal gear, tekken 6, final fantasy, gran turismo, kill zone and the social networking HOME and for people that that will not work on a console look at the folding@home. Not to mention that Drake, rachet and Haze are comming too...

Sony needs more updates, really need it, and the xbox too... just lets see the fall update in what they bring us...

And really... after halo and all that... what the xbox have? gears of war 2? just let see...
Reply to this comment
It has never been about price!
by Jasper1675 October 18, 2007 10:35 AM PDT
I don?t see why Sony can?t figure out the problem, it is not the price of the system. First of let me say I would be considered a tech geek, and not owning a PS3 is hard for me because well I know it is the most advance piece of consumer entertainment technology out there. But when I sat down and decide was I going PS3 or 360 it honestly came down to some very fundamental things none of which was price.

First game selection all I heard was how great Gears of war Was and how much better Xbox live was than anything the PS3 had.

Next was the controller sorry but the Microsoft controller fits your hand allot better than the PS3, and this is the only part of a video game you actually touch so it is a major part. Sony you need to redesign that controller it just feels and looks cheap.

So what I saw was the fact that the 360 had better games, better user interface (the controller), and a better online service and since I was buying a gaming platform and the 360 was better.

On the cost issue the Xbox 360 actually costs more than the PS3 and before you write your responses listen to this logic.
Lets say you are going to keep the system for say 4 years.
PS3 cost $400 online for four years free
Xbox 360 premium $350 plus $200 for 4 years of xbox live total cost $550, not to mention that if you have two gamers in the house you each need a live account if you are playing split screen and want to talk.

One last thing was that I felt like I was paying for a Blue Ray player in the PS3. As a consumer I have grown tired of Sony trying to push their products down my throat by bundling them. First was beta, then that stupid memory stick and none of their devices did SD cards, and now the blue ray. When I decide I want to buy a High Definition dvd player I will buy one I don?t want to be forced to pay for one that I may not want.

I think Sony forgot that the PS3 was a gaming platform first and foremost and they need to remember that for their next gaming console venture.

If the PS3 had been a better gaming machine I would have paid more money for it. Because in the end I will end up paying allot more for my 360 with live accounts, adding a HD dvd player, and in the end I?m so glad I have a 360 over a PS3.
Reply to this comment
Its about the games...Games...GAMES!
by Flush26 October 18, 2007 10:46 AM PDT
Sony just can't seem to figure that out. Say what you will about Blu-Ray, Wifi, HDMI, Cell Broadband processing, etc. If u don't have the games to backup and justify that technology, then it is inevitable that you will falter in the gaming war. The 360 has a number of standout exclusive titles (Gears of War, Bioshock, Halo 3) that are considered system movers. Sony has 0, none, zilch. Until they develop and publish a bonafied smash that is only available on the PS3, they will continue to trail the other two systems. I continue to be amazed by Jack Treton and Sony's arrogance regarding their system. I think they need to take a serious look at the competitors and then a good look in the mirror and maybe then they will realize why the Sony PS3 may very well be the single biggest console flop since the Sega Saturn.
Reply to this comment
Games Are Always the Key!!!
by Oldschool63 October 18, 2007 11:19 AM PDT
Before the PS3 launched I was tremendously excited and prepared for it by purchasing a new big screen HD tv, audio receiver and a complete surround sound speaker system. While I wanted a PS3 badly I didn't want it bad enough to camp out for days to get it. So I found myself in the position of wanting one but not being able to get one (without paying outrageous prices) for months. Little did I know how great a blessing it was to not be able to acquire the PS3. I had been under the impression from all the hype that the PS3 would totatly blow away all it's competition in regards to performance, quality, etc. After being about a year and a half behind the XBOX 360 the PS3 has not only not out performed the XBOX but has even on certain games has been inferior. Combine that with the fact that there are NO exclusive must have games on the system at all. For an audiophile the PS3's blueray isn't a true option either. Why in the world would I want to buy one at any price when it is virtually useless. It is definately one of the biggest failures I've seen in console history and I've been playing video games since Pong. After my initial disappointment with not being able to get a PS3 I purchased an XBOX 360 to basically make due until I could get a PS3. Thank God that wait took long enough for me to see the PS3's true colors.
Reply to this comment
Yah.. well this wownt change anything...
by skyline6 October 18, 2007 11:57 AM PDT
Cmon people its time to forget the dreams and get with the program! No matter what the PS3 duzz it wownt get any further then where it is now...

And the guy who said all they need is a couple of games and they will be on there way... Well sorry but no... Gaming systems are made to be a hit right away and not something that gets popular after a year its been out. No matter how much games will come out on PS3, more will be out for 360...

I am a Xbox person but i was excited about the PS3 when it was coming out... All i got was more evedence that it sucks..., And think about it... If the HD DVD is cheaper than BLUE RAY, and The cheapest HD DVD is for the 360., Then how much is the BLUE RAY worth in the PS3?? Its either extremely cheap and is crap or also cost around 200 (like the HD DVD for the 360), so if you take that price away the PS3 is worth as much as 200 dollars...

Very disapointing...
Reply to this comment
re: Yah.. well this wownt change anything...
by siva66 October 18, 2007 7:18 PM PDT
wrong, the game consoles themselves lose money. they make money over the long haul with game sales. therefore you cannot judge a console based on a couple months time. learn a little before you post.
Good price, good timing
by Fedfidla October 18, 2007 1:12 PM PDT
I applaud sony's decision to drop the price and offer a new system. A lot of X-Box fanboys will say they need more games and price means nothing, but look at the Wii. There are a handful (maybe 5) games, all made by nintendo that are any good. The reality is the wii destroys PS3 and X-box sales because it is significantly cheaper. Spider man 3 wasn't great but how much did it make? oh yeah, over 1 billion world-wide. a smart bundle choice. We will see what happens.
Reply to this comment
games, games, games
by pase121 October 18, 2007 1:29 PM PDT
the title says it all...
Reply to this comment
What's coming out, compared to what is out.
by zgreenwell October 18, 2007 1:37 PM PDT
A lot of people who are reallying into the PS3 are talking about how great it will be when whatever title comes out. The truth is that these titles aren't out and if they do finally come out there is no telling how good they will be. I know that Halo 3 is good a microsoft delivered on its promise to get it out for this year. I have yet to see a compelling PS3 exclusive. People said that Lair would be great and it wasn't. And for as great as heavenly sword looks I think I can live without the 5 hours of gameplay it offers. Though warhawk looks good it isn't enough to convert me from the 360, even with the price cut.
Reply to this comment
It's a start....
by Magishine October 18, 2007 1:47 PM PDT
For me it's about price and games. $400 is still a bit pricey for a system that doesn't have any standout games. Most of the games I can get for the PS3 I can also get for the 360. Specs have nothing to do with it. As Sony has found out, Extreme specs + few standout games = an expensive system with very little justification
Reply to this comment
An interesting tactic...
by airman_79 October 18, 2007 2:08 PM PDT
I agree with most that game selection is key to market significance, however Sony needs to change their entire marketing strategy instead of just dropping price. Lowering the price is a start, but if they don¡¦t do more they could be in a world of hurt. For one, Sony needs to market the PS3 as a remarkable piece of equipment that it is. Market it as a Blu-ray player with additional features or market it as a TV-PC media hub. Sony needs to expand the web capabilities including their web browser and store. Buy some some prime-time HD commercials out there during ¡¥Heroes¡¦ or ¡¥Chuck¡¦ and tout the features and graphical capabilities. (I saw a Heavenly Sword commercial last trip to the movie theater and my jaw dropped.) Firmware updates need to expand it¡¦s compatibility with file extensions and other apps. I don¡¦t think price everything.

The competition between the Nintendo, MS, and Sony reminds me of another competition totally outside the gaming realm. If any of you Gen Xrs out there remember the retail chain Kmart; they tried to compete with Wal-Mart on price. Then Target came from no where and did something no one expected¡Knot compete with Wal-Mart. Right now I see the 360 as Wal-Mart (strong market share, solid consumer base, cheaper than PS3), the PS3 as Kmart (CURRENTLY going up against MS soley on price), and the Wii as Target (trying something totally new and not even trying to compete with MS or Sony). Now, I don¡¦t think Sony is at all going to go belly up like Kmart (or Sega!) because their product mix is huge(TVs, computers, audio, etc.).

Having said all that, (Wii disregarded) I did purchase the PS3 over the Elite. I realized that both systems are what they are. Why try to be a hard core gamer when I¡¦m not? My interests in the system differ from the market Sony is trying so desperately to attract, the 360 gamer. After months of comparison and skimming pages and pages of Internet chatter, disecting review upon review, I decided to purchase the PS3. This coming from an avid original Xbox owner since 2002. I'll admit that I was a fanboy of Xbox over PS2 based on (in my eyes) technology Xbox had over the PS2. This after knowing the PS2 had a larger library of games. For me, it was the sheer HD capabilities the original Xbox had over the PS2. I felt lost when I went over to friends homes and held their tiny PS2 controller in my hand or when I saw the PS2 games stretched out from a 4:3 ratio to 16:9. The choice was always clear to me as was the choice to have the PS2 was to my friends. I didn't understand why people chose the PS2 over the Xbox. Then I realised people bought the systems for different reasons. It was the gaming community that pit the systems up against each other. Think 2-Pac vs. Biggie.

When comparing the Elite and PS3, I thought back to Halo/Halo 2 on my Xbox. I remembered having friends over and them immediately asking if we could play those. I would grudgingly put in the disc and play for hours upon hours in non-stop FPS action. It only took me a few hours to realize that I despised FPSs. I owned Halo and Halo 2 purely for company. I never played on my own. When I purchased my PS3 (on Sept 25 no less), it was almost a rebellion against Halo 3, better yet FPSs. Halo is the epitome of the FPS. I don¡¦t hate MS, nor do I harbor any sore feelings toward Halo 3 fanboys. The Halo factor just wasn¡¦t there for me.

Pricing has been listed a few times in this thread and I know that factors weigh different consumer to consumer , but here is how I broke down the cost based on features important to me and how much I wanted to spend.

**These figures are based on pricing at the time that I compared systems:

PS3 60 GB $499:
Wireless network card-incl.
Next Gen HD disc drive-incl.
Online play-incl.
HDMI cable-$7
Total = $506

Elite 120 GB $449:
Wireless network adapter-$99
Next Gen HD disc drive-$169
Online play-$49/year
HDMI cable-incl.
Total = $766

Looking past the HDD space, the PS3 beat the Elite in price based on the factors that influenced ME not John Q. Gamer. Sony was betting on bundle. That hasn't worked out too well for them. I bought the PS3 for all the reasons that Sony hasn¡¦t marketed it for and I love it. The way I see it, in the gaming world the tables have turned this round. MS has a jem (aside from RROD) of a system. They will probably stay on top of the PS3 in sale figures and game titles. No, Sony will not crumble and fall (to the utter disgust of 360 fanboys everywhere), but will continue to hold out in second place until the next-next-gen consoles come out. Both will continue to release games and both will still have their strong customer bases. If one must say that there is a ¡§winner¡¨, it will probably be 360 and I don¡¦t think it¡¦s too early to say that.

To sum up, Gamer X (hard core gamer) has chosen the 360, Gamer Y (undefined gamer yet to be categoriezed) has chosen the Wii. All that leaves is Gamer XY (casual gamer) that chooses hardware, features, and the every now-and-then fun game. Heck, the game doesn¡¦t even have to be a PS3 exclusive. Enter GTA IV. Who cares if it¡¦s on both systems. ?º
Reply to this comment
Good move.
by brandonh33 October 18, 2007 2:13 PM PDT
First off i will talk about the lack of games. Look back at where the 360 was in this period of its life that the ps3 is currently in(around 10 months). The ps3 is far ahead what the 360 was. People just think that sony is just supposed to jump in the game and have as many titles as the 360 in a few months even though the 360 is more than a year older. Seriously give it time, they have told us the games that will be out for christmas and the list is filled with hits. As for the 40gb ps3, sales have jumped over 170% and outsold the wii and 360 where it has already been released. The 40gb is going to be huge this christmas along with the $500 80gb. I have read many people commenting on how they got a 360 because they wouldnt pay $500+for a console. These people are what i like to call morons. Seriously they just look at the sticker price. This is a big part of the reason a lot of younger Americans are driving themselves into debt. You might say that its just a couple hundred of a mistake, but i dare to bet that these same people who think that they will save money by buying a 360 are going to make some other very stupid financial choices in the future. Lets add it up. 360 elite $450+wireless internet $100+hd-dvd drive $180+live gold 12 month $50 + bluetooth $40. Thats a total of $820. Now for the ps3 40gb $400+ 160gb hdd on newegg $100. Thats only $500. Even the 80gb is only a total of $600. You can even take a few items off the 360 or even just buy the premium, its still more. Not to mention the ps3's 5 more cores, six-axis controller, everything internal, more memory at low price if you buy another hdd, better user interface, almost absolutly no hardware issues, quiet ect. Anyways, ps3 is a better deal hands down.
Reply to this comment
you should just change your blog title
by siva66 October 18, 2007 2:22 PM PDT
to "xbox fanboys" or "your daily ps3 bashing"

if you continuously compare the systems, compare them on a apples to apples basis. talk about sales during the same start up period, or compare what the 360 game reviews where when the red ring of death machine first launched.

it's very easy to talk about game quality when programers have had a chance to work with the systems for some time. there's always a learning curve (check some of the ps2 comments when that system initally launched) rfom was awesome, warhawk is great, the ratched demo was just insane, drake's fortune. and then you have the exclusive games that are being released next year. oh yeah, and you can watch hd movies and basically run your entire living room entertainment through it. check the sales numbers on the ps3, especially now with the price drop (up 175% in europe i believe). oh yeah it's a disaster....
Reply to this comment
Good idea on the blog title
by RRosal October 19, 2007 7:46 AM PDT
Have to agree with you, it would appear that Crave for all its fluff and whatnot is basically a Microsoft/XBox fanboy magnet and Sony and the PS3 will never have something positive said about them despite what they do. Yet another reason to despise Microsoft for positioning themselves at the top of another market that they had in their sights. Now they just need to form their own government so we can call it a day.
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useless
by yanasina October 18, 2007 2:38 PM PDT
Without backwards compatibility, it might as well be a paperweight.
Reply to this comment
Competition
by Univern72 October 18, 2007 4:54 PM PDT
The PS3 and Xbox360 are about the same value at this point in time. PS3 has a lot of potential, lots of good games coming out for it. Blu-ray player for $400? Good deal. Xbox360 has great games and comes with two at this moment. It costs more with Xbox Live, but then it's the same price as PS3.
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