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E3's Most Popular Rumors: Will They Happen?
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Sat Jul 07, 2007 4:36 am Reply and quote this post
1UP decided to take a look at a few of the rumors people have desperately hoping will show up and whether there's enough substance to expect they'll come true.

lets see
1up.com wrote
Quote:

The Rumor: PlayStation 3 to Receive Price Drop
The Evidence: When PlayStation 3 launched in November, most balked at the price points ($499/20GB, $599/60GB), but more shocking was the negative margin on each console. Next Generation reported Sony was losing more than $300 on each 20GB console, $240 on each 60GB. Lower than expected sales and higher losses eventually led to the elimination of the 20GB console, but the 60GB unit soldiers on.

But, if losing hundreds on each console is Sony's way of getting the units into houses, it's not working that well. NPD numbers have yet to be made available for June, but between March and May, it appears that just 293,600 consoles sold through to North American consumers, compared to 528,000 for Xbox 360 and 957,000 for Wii. Even PlayStation 2 is handily outselling its younger sibling, moving 664,000 consoles in that same span.

Consumers may be voting with their dollars, but the complaints are starting to come from more prominent and public sources. Just recently, Sega and Ubisoft called for price cuts, while analysts from Savner to Sebastian have chimed in with similar comments. Even the mainstream press is involved, with the Los Angeles Times asserting in a May feature that Sony was facing an "uphill climb."

Sony's initial reaction had been negative, with high-ranking officials saying the console was "probably too cheap," that features of other consoles were "last-gen," and that the PlayStation 3's rampant availability was due solely to increased production. More recently, the company seems to be coming back down to earth, acknowledging that not all is perfect in the land of PlayStation. Sony CEO/Chairman Howard Stringer told the Financial Times in May that "the public would like the cost to be lower," and that price cuts were what they were "studying at the moment."

Remember, there is precedent for a PlayStation price drop within the first year. Back in 1996, Sony slashed the price of the original PlayStation by $100 dollars (from $299 to $199) just nine months after release. However, it took the PlayStation 2 an additional year beyond that to drop, and it's hard to pinpoint when exactly the PSP dropped in price, considering the various value packs that have graced store shelves since its March 2005 launch.

Just as we were putting the finishing touches on the above evidence, a scan of a forthcoming Circuit City flyer came down the rumor mill, advertising a $100 price break on the 60GB model. Sony didn't have much to say on the topic, first labeling it a rumor, then refusing to comment once the scan started circulating. GameDaily BIZ verified the upcoming drop with a "merchandising manager at one of the world's biggest retailers," so barring an orchestrated hoax, we can thank the lengthy lead times of the print industry for this massive tip.

The Verdict: Previously, we were undecided about the prospect of a price drop (due to Sony's varying opinions on the matter), but with the revelation of the Circuit City scan, it looks like a drop is imminent. The five free Blu-ray movie promotion starting this month doesn't hurt, either.


more on nintendo wii
http://www.1up.com/do/newsStory?cId=3160842

Contributed by sa_rocky, iVirtua Ultimate Contributor
13628 iVirtua Loyalty Points • View ProfileSend Private MessageBack to Top

Fri Jul 13, 2007 4:43 pm Reply and quote this post
August 1st: Xbox 360, $199US. PS3: $599US. (Console Wars are OVER!)

As Sony plays the media with fake price drops/SKU upgrades, Microsoft hits "the magical price point" sooner than anyone thought.

Contributed by Editorial Team, Executive Management Team
372659 iVirtua Loyalty Points • View ProfileSend Private MessageBack to Top

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