Sony PS3 Future Price Cut Hope: production cost down 50% (1 Viewer)

Rich Jr

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January 12th, 2008 by Daniel

The Sony PS3 has had some nice price cuts last year which made many gamers new to the Playstation 3 happy, but with the news that Sony has cut production costs down 50% could we start hoping for another price cut in the next year or two.

The production cost now is around $400 from $800 when it went on sale in November 2006, saving $400 is a lot but would Sony ever want to bring the price down more.


Sony have been able to “shrink the PS3’s chips and tweak its design,” which has helped lower the production cost and at the very least gives us hope that there could be room for a price cut in the future.
http://www.product-reviews.net/2008/01/12/sony-ps3-future-price-cut-hope-production-cost-down-50/
 

Enigma

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Thats good for Sony profit wise, but I don't think it will change anything. I don't think another price drop is coming any time soon. They want to make some money off the system while they can.
 

AsaPW

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Thats good for Sony profit wise, but I don't think it will change anything. I don't think another price drop is coming any time soon. They want to make some money off the system while they can.
I don't think so either. $400 bucks really isn't a bad price at all for what you get.
 

Jeff Miller

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that report doesn't make sense, you should also keep in mind that in business, there is nothing more decieving than an offical company statement.

the cost of the a PS3 consists of labor, raw materials, packaging, transportation, markeing and other selling expenses. Shrinking a chip and "tweaking" its design has nothing to do with the majority of the cost of a PS3.

This is not my typical , i hate sony rant, this simple cost accounting. a 50% cost reduction in one year is so huge, that basically shows incompitance for the inital cost structure of the product. What makes more sense, is that the cost of the PS3 was always around $400, any by marketing it as a Combo game platform/bluRay player they could justifiy the a 100% margial mark up for the retail price. After all, the public in general doesn't really know how much it cost to build one, they are just dazeled by the fancy graphics and HD movies.

Based on my marketing expirence, Sony is trying to convince you that a $400 bluRay player is a great deal, and that inital $800 retail price was something that everyone should just pretend never happened. Remember, the PS3's designer thought the price of a PS3 should have been about $1,000.

But since the PS3 is the #1 selling bluRay player on the market, is clear sony has shifted its marketing stratagy from the high end "snotty" market, to the medium price for deeper market penetration.
 
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saints225

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that report doesn't make sense, you should also keep in mind that in business, there is nothing more decieving than an offical company statement.

the cost of the a PS3 consists of labor, raw materials, packaging, transportation, markeing and other selling expenses. Shrinking a chip and "tweaking" its design has nothing to do with the majority of the cost of a PS3.

This is not my typical , i hate sony rant, this simple cost accounting. a 50% cost reduction in one year is so huge, that basically shows incompitance for the inital cost structure of the product. What makes more sense, is that the cost of the PS3 was always around $400, any by marketing it as a Combo game platform/bluRay player they could justifiy the a 100% margial mark up for the retail price. After all, the public in general doesn't really know how much it cost to build one, they are just dazeled by the fancy graphics and HD movies.

Based on my marketing expirence, Sony is trying to convince you that a $400 bluRay player is a great deal, and that inital $800 retail price was something that everyone should just pretend never happened. Remember, the PS3's designer thought the price of a PS3 should have been about $1,000.

But since the PS3 is the #1 selling bluRay player on the market, is clear sony has shifted its marketing stratagy from the high end "snotty" market, to the medium price for deeper market penetration.
lol
 

antipop

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This is not my typical , i hate sony rant
sure it is

Based on my marketing expirence, Sony is trying to convince you that a $400 bluRay player is a great deal, and that inital $800 retail price was something that everyone should just pretend never happened.
so, a $400 dollar blu-ray player is a bad deal????

don't forget the next-gen game system with online capability built in when deciding if it's a great deal for a "blu-ray" player :9:

and i don't care that they charged so much for it, because i didn't buy one at that price
 
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kcirdor

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Plasma tV's used to cost 5000, KILL PANAPhillipsNavox..... err wait just blame Sony
 

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