PS3 died just a little today
It’s been fun to poke fun at, but this may be cause for at least minor concern. The PS3 has been officially on sale for not quite 5 Months (Nov. 17, 2006 to April 11, 2007) to be quite exact, and while the PS3 20Gb unit has seen diminishing support from retailers, today Sony has pulled the plug. Joystiq caught the buzz straight from Sony’s Dave Karraker:
“At launch, we offered two separate models of PlayStation 3 to meet the diverse needs and interests of our PlayStation fan base. Initial retail demand in North America was upwards of ninety percent in favor of the 60GB SKU, so we manufactured and shipped-in accordingly. Due to the overwhelming demand for the 60GB model from both retailers and consumers, we have ceased offering the 20GB model here in North America. In addition to the larger internal hard drive, the 60GB PlayStation 3 features added storage media slots and built-in Wi-Fi not found in the 20GB system. Based on retailer and consumer feedback, we have decided to focus our current efforts on the more popular 60GB model.”
My serious concerns are as follows. The Playstation 3 is already in a price league of its own, and this slashing has caused that price gap to increase significantly. At this point in time Sony should be slashing the prices. Secondly the Xbox has been able to do well with two different systems for a much longer time and no end to that model is in sight. Infact they have decided to introduce a third one to the mix. Is the PS3 even reaching price conscience consumers if the cheaper version wasn’t selling, and isn’t that a major concern or will we all forget about this in a few years?
Either way, a piece of the Playstation 3 just died today, and that certainly can’t be a good sign 5 months in.
April 12th, 2007 at 8:36 pm
cry more…
April 13th, 2007 at 12:17 am
That just prove people would pay $599 for PS3 rather than $499…… duhhh
April 13th, 2007 at 12:46 am
I agree all this proves is that Sony is trimming the fat from their lineup, nobody really wants a crippled PS3 so they might as well put money into manufacturing more of the high end ones.
April 13th, 2007 at 3:05 am
Josh why would they need to make more of the 60 gig ones they can’t sell the stock they have already.
Reason they have cut this is plain and simple they’ve realised mass market doesn’t gove a shit about ps3 so are reducing some of the astronomical losses they are making by producing only the package sony fanboys will buy.
Face it if you are a non traditional gamer are you going to download 60 gb of junk? No you’re not only people who need that storage are hardcore gamers
April 13th, 2007 at 5:22 am
If that comment was in response to me Ruined (as opposed to “Josh”) then from what I’ve read the actual money both Nintendo and Sony have earned from their consoles is pretty even. So the PS3 sells less but at a higher price, and Nintendo sells more but at a lower price. I’m not arguing your point but the 20Gb version was pretty featureless compared to the 60Gb version, I think people just decided that since they’re spending that sort of money they might as well go the extra hundred and get the good version.
BTW I’m not a fanboi, I hadn’t ownded a console until the Wii and I’m pretty disappointed with the games it has.
April 13th, 2007 at 5:31 am
Sorry I misread so was partially responding to PS3 Fanboi Josh and partially to you as I thought it was one person.
The profit info you’ve heard is wrong though. Sony is making a massive loss on every PS3 they make. Last year the games division lost over a billion dollars. Nintendo makes a profit on every wii it sells and posted nearly a billion in predicted profit for this FY.
Sony’s strategy is to take a loss on each machine hoping to make it back on games due to market share. Problem with PS3 is it isn’t selling so they are just hemorrhaging money at the moment.
April 13th, 2007 at 7:08 am
And so the downfall of the PS3 continues… Its already too late… people already have a Wii or a 360 (or both).. why spend double on a console with inferior GFX to a 360 and no Wii controller? Games will not be produced for any length of time with such a low user base… and Sony seems intent in keeping it low.
April 13th, 2007 at 7:53 am
Ruined you belong in Dumpster Dive, the way you go attempting to portray everything Sony does as the END of WORLD for Sony!!!
First off 20gig costs them more to produce and yes it wasn’t selling. Second Sony is ahead of M$ on going to the cheaper more efficient cooler 65nm process, because they (unlike M$ have been building electronics for twice as long as M$ has been making crappy software!!!
To attempt to make Sony look bad, makes you look like a stupid fool. The second largest electronics manufacturer in the world, look bad? As if they are suddenly going to dry up and blow away is a monsterous lie and b3yond any sane person’s wildest imagination.
Sony’s last gen game sales alone over the month of March, set all time records with two games alone selling over 300% more than it’s closest competitor Nintendo’s, in per game world wide sales! World Wide numbers are in and PS3 doubled everything they’ve sold to date over March now with a full worldwide launch under it’s belt for the first time. They demolished all launch sales records in Europe over all competition!!!
You quoting Sony losses is a freaking joke since they’re the first losses in the division since the launch of the PS2. You moron!!! And most of all they pale by comparison losses Microsoft has been suffering with crap like Zune, Origami, Vista, HPC Cluster OS Software that is getting killed by a 95% to 2% ratio by Linux!!! PS3 owners have Obliterated Computer contributions over the last 6 years in 3 weeks on the FOLDING@HOME Project!!! And they’re just getting started!!!
If you want to talk losses, your talking to the right person, because I can add up the billions of loses suffered by Microsoft the last two years and they make Sony’s look like nickel dime stuff in comparison.
Two Billion in fines to European courts, over two billion in lawsuit settlements, over 4 billion in the games and entertainment division. Billion dollar losses every year since it opened in 2001.
DON’T THINK MICROSOFT IS LOSING MONEY???? THINK AGAIN!!!
If not how did they go from Cash Reserves of $64 Billion two years ago, to just $29 Billion TODAY???
($35 Billion Depleted from M$ Pockets in Two Years)
http://www.macnn.com/articles/07/04/02/microsoft.bleeding.cash/
If you want links, I have pages of them to keep you busy and Ruin your Social Life!!! LOL Just say the word fool!!! Sony losing money… Mwaa…ha..ha Not the NET LOSSES M$ is incuring!!!
April 13th, 2007 at 8:17 am
The 20GB model was likely a short term thing in the first place, a slightly lower price point to advertise that would be phased out quickly.
We all know Sony is losing money on production of the PS3, but there were losing MORE money on the 20GB unit.
Ultimately the decision is good for consumers since it means the more feature rich version will remain available, and though the price is high, it won’t be $600 forever.
April 13th, 2007 at 8:33 am
they cut the $500 model cause there all still sitting in best buy. Stupid thing can’t sell.
April 13th, 2007 at 9:10 am
Monarky out on his old antics again hehehe!!! “Sony is the best thing since hot water & they shall rule the worldz!!!”, you are the King of delusion dear blind Sony groupie, you are quite right about MS, what I don’t understand is how you fell to realise that Sony is a MS wannabe, they are the same crap, forcing proprietary crap to monopolise the market, while MS has been losing tons of money with XBox (not enough to my taste as they are still open for business), they also have way deeper pockets than Sony, Sony is in financial trouble, that’s why Stringer was called in & the almighty savior PS3/BD-rom isn’t quite doing it!!! Spin it he way you want, the truth is that everybody is being kicked hard by Nintendo. Again, I see Sony being bought by Samsung or Matsushita in 2-3 years.
April 13th, 2007 at 11:01 am
This is getting waaay to much attention. Look, Sony loses more on the 20 GiB model than the 60Gig, when sony produces them, but people don’t buy them, it’s just flushing about $700 down the hole. This isn’t a signal of failure, it’s a sign that Sony still has common sense. If Nintendo stopped making the original DS would that be bad news for the DS Lite? No. Don’t get me wrong, PS3 is nowhere near DS for success, but the point is this was only a logical move on Sony’s part.
April 13th, 2007 at 12:49 pm
I would have to agree with Q man and congratulate Sony for making a wise business move. Now they can stop trying to be like MS with the multiple models and concentrate on improving their console. Keep it simple I always say … one model is enough … at some point it will benefit MS to do the same. Nintendo is doing well and that is one of the reasons why … less confusion in the channels, less confusion with store employees and less confusion among the customers.
April 14th, 2007 at 10:50 am
Too bad they have lawns with high interest rates, too bad it’s an OPERATING profit forecast, that is if you understand the concept, too bad it comes from nowhere, too bad Bravia are Samsung LCD rebranded so Samsung are the ones making the real $$$, so Sony is losing strenght against a direct competitor, worst Sony relies on Samsung for their TV line, hehehe… what I fail to understand is how the earnings come from videogaming since with utopian forecasts in their PS brand, they would make 500M$ of operating profit, then the PS3 hardware & software sales are nowhere what was forecasted, still they make more money… sounds fishy, only explaination I find is that since they are not selling the amount of PS3 they were aiming for, they are not suffering the cost of the loss of every console, this can be extended to the PSP too, since it’s sold at loss & is not selling as well as Sony tought. If it’s the reason behind better operating profits, Sony really doesn’t have any reason to rejoice…lol
April 14th, 2007 at 6:43 pm
“If you want links, I have pages of them to keep you busy and Ruin your Social Life!!!” Well Monarky seems you have no social life then yeah? I know your a teenie bopper anti microsoft fool. It warms me to know your type is out there.
You want to talk about march usa sales charts. Chuckle. Wii 400k 360 250k .. and the ps3 tied with the game boy advace at 165k. Haha. Good times.
As to your “M$ is running out of money” spew. Microsoft has been purchasing companies and purchasing stock back. They have said them self xbox 1 (the real money loser) was worth it to get a foot in the door in the video game market. Which they had because 360 is blowing the ps3 away. have a nice day child.
April 15th, 2007 at 8:37 am
WOW. If someone asked, Monarky would sacrifice his life for Sony…
April 16th, 2007 at 6:20 pm
I’m gay, and I hate ps3
April 18th, 2007 at 8:15 pm
monarky is still thinking killzone 2 footage is real and 4d is coming in 2008.
April 19th, 2007 at 2:31 am
No odm! I just haven’t been sold into slavery to MS’s demented Vista Rent-to-Own OS the system that pwns you instead! Packed with Phone Home SpyWare and DRM’d Media Industry Ownership of YOU!
You have just been silently DRM’d (Digitally Rectal Manipulated) by your Big Daddy Steve “Monkey Man” Balmer and Company! How does it feel to be riding this from Microsoft?
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August 9th, 2008 at 8:08 am
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