NVIDIA boss on PS3 pricing plans

By Games Industry.biz Published 3 August, 2005

Priced to sell.

Speculation over the price of the PlayStation 3 has been fuelled this week by the appearance of comments from NVIDIA chief executive Jen-Hsun Huang, who compared his firm's new approach to graphics card pricing to Sony's PS2 plans.

Sony Computer Entertainment boss Ken Kutaragi has repeatedly hinted that the PS3 is going to be priced at a premium level - famously commenting that he wanted it to be a device consumers would be prepared to work overtime to afford.

However, Huang's comments about the pricing are more vague - and seem to suggest that Sony's focus is, as with previous consoles, about finding the right price point to encourage sales rather than being directly concerned with manufacturing costs.

Responding to a question in a Beyond3D interview about the price point of the new GeForce 7800 graphics part, Huang said: "We need to price it at a level the enthusiasts will buy it at, that's the way that we think about pricing."

"We think about the pricing of this in the same way that Sony thinks about PlayStation 3's," he continued. "Its not about how much is costs, its about what is the price it needs to sell at, and we need to figure out how to make money underneath that."

Sony's consoles have so far been sold at a loss for the early part of their lifespan in an attempt to build up an installed base quickly, but the hardware has gradually become profitable as the manufacturing costs drop off more rapidly than the price cuts at the consumer end.

Microsoft's Xbox 360 is expected to launch later this year at a price point of roughly $300, although some sources have suggested that Ken Kutaragi's repeated allusions to a high PS3 price point could be pushing Microsoft to ponder a higher launch price.

The PlayStation 3, which will launch in spring 2006 in some territories, will have more built-in functionality than its rival - but whether that will justify a significantly higher price tag for many consumers is a theory that has yet to be tested.

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Comments (52) Latest comment 7 years ago

Comments threads automatically close after 30 days, but please feel free to continue chatting on the forum!

  • Tyronne #1 7 years ago

    With that kinda price tag I will not be a release day buyer.

  • #2 7 years ago

    The very expensive PSX2 coming soon!!

    You'd think SONY would learn no one wants shit they don't need twice!

    P.S For those who don't know the PSX was a overpriced useless piece of kit that try to do a bit of everything badly, for that it was a massive flop!

  • tonynibbles #3 7 years ago

    My money for PS3 is ready and waiting.

  • Huddy #4 7 years ago

    "My money for PS3 is ready and waiting".

    I bet you spend that money long before Xmas 2006, who knows maybe on a Xbox 360 :D.

  • Vin #5 7 years ago

    "The PlayStation 3, which will launch in spring 2006 in some territories, will have more built-in functionality than its rival"

    More, but ultimately USELESS, features.

  • The-Bodybuilder #6 7 years ago

    >"My money for PS3 is ready and waiting."

    You're gonna need more than the coins in your piggy bank.

  • tonynibbles #7 7 years ago

    Piggybank? Whats that?

    My new uber gaming PC didnt come out a Piggybank, and neither will PS3.

    If I did have a Piggybank, it'd be emaciated and famished, shackled to an over-sized VISA card.

  • Gareth.de #8 7 years ago

    More, but ultimately USELESS, features.

    Connecting 7 joypads to play 4-player split-screen is pretty handy I reckon.

  • tonynibbles #9 7 years ago

    I wish everyone would drop the 7 joypad thing...

    Yes it is wierd, but you can still use a USB pad to play 8 player. And no one knows if PS3 will ship with a wired pad or a wireless pad. hopefully the pads will be useable as both wired and wireless, just by adding the cable,

    Considering XBOX / any other console doesnt bother with 8 player games, keeping 8 player on Playstation is a good thing. Fond memories of 8 Player FIFA 2001 with beers, a BBQ and sofas in the back garden at Uni...
    Edited by 1 at 03/08/05 @ 17:52

  • kangarootoo #10 7 years ago

    "If I did have a Piggybank, it'd be emaciated and famished, shackled to an over-sized VISA card."

    Bragging about how much cash you "apparently" have is as sad now as it was when you were at Uni.

  • tonynibbles #11 7 years ago

    haha, very funny.

    You telling me that you dont use credit cards? If you are, then give yourself a pat on the back!

    Its not big and its not clever spending on cards, but I work my arse off and I've decent salary and enuff freelance work to keep me busy.
    SO frankly, you can go fuck yourself San Diego.
    Edited by 1 at 03/08/05 @ 17:59

  • darkmistx #12 7 years ago

    "The very expensive PSX2 coming soon!!

    You'd think SONY would learn no one wants shit they don't need twice!

    P.S For those who don't know the PSX was a overpriced useless piece of kit that try to do a bit of everything badly, for that it was a massive flop! "

    Ok, congragulations Balor, you can be the first person to go on my ignore list. Up till now I've never found anyone irritating/annoying enough to warrant it's use, but in your case I'm going to make an exception.

    /puts Balor on ignore
    Edited by 1 at 03/08/05 @ 18:42

  • IronGiant #13 7 years ago

    Why ignore him? everyone already knows he's a cock, just laugh at his comments, they're hilarious.

  • #14 7 years ago

    Hey! I'll be sure to miss the sparkling conversations. :)

    I'm sure you have a chuckle now, however when the time is right and you're reading yet another second hand story on Eurogamer, you'll see me in the comments thread saying "I told you so!" ;)

    SONY's Dirty Little secrets Muwahaha!

  • darkmistx #15 7 years ago

    Yeah, but it gets tiresome after a while to read his tripe in almost every comments thread that directly or indirectly has something to do with Sony or PS2/PS3.
    Edited by 2 at 03/08/05 @ 19:08

  • drumbaby #16 7 years ago

    "Yeah, but it gets tiresome after a while to read his tripe in almost every comments thread that directly or indirectly has something to do with Sony or PS2/PS3. "

    I've got him on ignore. But sometimes I miss his idiocy!

  • #17 7 years ago

    Hmm.. I remember SONY making something called the PSX, I can forgive you for not knowing what it was or is because it flopped badly in Japan and never say the light of day outside the country, anyway take a look. The SONY PSX.

    And just to refresh your memory, here's what it's uglier sibling looks like the PSX2 also known as the 'Supercomputer' £400+ Ouch!

  • chrisremo #18 7 years ago

    Lavalant, the PSX was an actual machine released by Sony. It was a PS2 with all sorts of extra media center features, and it was very very expensive, and nobody actually bought it. That's what's being referred to in this thread, not the PS1.

  • a8a #19 7 years ago

    I also have Balor on ignore, along with the other xbox fanboys such as Xerx3s and arnieofdarkness. Not that I prefer PS3 to Xbox 360 or anything (too early to say - Ill probably get both eventually, when there are games I want on them), but for some reason the xbox fanboys are particularly vocal and annoying here.

  • #20 7 years ago

    cheers for that second link balor , i love the pic of the ps1 with a duck and a torch taped to its pad , f**king histerical !

  • #21 7 years ago

    Hey don't worry if SONY's <A href="http://arstechnica.com/news.ars/post/20050803-5165.html">Dirty little secrets</a> keep getting exposed, Eurogamer will be on their ignore list and there probably won't be much SONY spin / PR for me to comment on! :p

  • #22 7 years ago

    No problems Petay_Pan! :)

    I'm glad to hear that there are a few people who aren't as uptight about a bit of console fun poking as most are on here! :D

    Quaaack! Looks better than the Battarang. :/

  • kgthatsme #23 7 years ago

    If anything, petty 'rivalry' between console owners should be less than ever... we're all stuck playing exactly THE SAME multi platform games no matter the hardware. There's f*ck all difference between them nowerdays. To constantly knock a company that they don't 'support' is childish - try supporting a football team.
    (Still, Nintendo's wank)

  • captain-future #24 7 years ago

    mark my words:

    I will buy a shiny next-gen console when they cost 299 EUR.

    My best guess is that MS will sell X360 for 399 EUR this christmas, Sony will (as always) rip us European off and delay PS3 until late 2006 maybe 2007, pricing will be USD x 1,35 = EUR.

    I guess the US price will be somewhere around 499-599 USD. if you apply my handy formula then you get 649 - 749 EUR. which would basically kill PS3.

    from this perspective maybe MS has a very good hand indeed?

  • Dr_Fripp #25 7 years ago

    Well you're from the future. So you tell me!

  • alpha-0ne #26 7 years ago

    sony has lost the plot at some point they have to listen to the public we do not need 6 usb ports, twin hdtv output, blue ray for that matter, we want to play games...

    maybe killzone will be a movie using blue ray, i though the ps3 graphics are meant to be amazing why do we need rendered into movies????

    movies are for other systems

    ill think i will still buy one but £500 + £60 a game!!!!

  • Dr_Fripp #27 7 years ago

    Deal with it, Killzone will be all prerendered, just like FF TSW. It's been official for a long time so I don't understand how you still have problems with it.

    %

  • matt__jon #28 7 years ago

    I'd have to agree, Sony insists on making a multimedia machine, people who are gonna do all that stuff use their PC's for it, do that to the VAIO, just make the PS3 play games and movies please, and maybe a hard drive, or let us install hard drives we buy for computers so I can get a good one.

  • kangarootoo #29 7 years ago

    @tonynibbles

    Crap, crap, crap. Here I was poised to make some other snide remark about your spending, entertaining no-one but myself I'm sure, and then you sign off with a reference to one of my favourite comedy films in years and take all the wind out of my petulant sails. Damn you AND the piggy bank that you don't have.

  • DaveT #30 7 years ago

    "Ok, congragulations Balor, you can be the first person to go on my ignore list. Up till now I've never found anyone irritating/annoying enough to warrant it's use, but in your case I'm going to make an exception.

    /puts Balor on ignore"

    Same here, but only did that for another thread earlier.
    I knew he was going to be in here spouting pointless crap about "SONY" (Not sony or Sony, as everyone else would have it), and was so pleased with the ignore funcion.

    I'm not planning on buying either a PS3 (I have better things to spend my money on). But I don't insist on telling eveyone this on every single thread, it's a good way to invalidate whatever point you may have, and just annoys everyone, he's probably been better at advertising the PS3 than the Xbox..

    I think summary justice should be performed. Possibly ramming him up Bill Gates behind. But then again, he'd probably like that.

  • IronGiant #31 7 years ago

    "Hey! I'll be sure to miss the sparkling conversations. :)"

    Your trolling won't.

    "I'm sure you have a chuckle now, however when the time is right and you're reading yet another second hand story on Eurogamer, you'll see me in the comments thread saying "I told you so!" ;)"

    Regarding what? What do you think you're so right about.

    "SONY's Dirty Little secrets Muwahaha!"

    Wow that was worth linking to, what has that got to do with Sony's games division? Obviously MS are whiter than white in your beady little eyes.

  • sumanai #32 7 years ago

    Well, MS is kinda white. Atleast according to the X360's look.:)

    I'm guessing Sony is going to sell PS3 at ~400 euros, and loose money with each unit. But, as with many things, only thyme will tell. (yeah, I'm a real comedy genious, just please don't hit me).

    I thought the PSX had sold rather well in the Japan, it's just that Sony thought that it wouldn't sell in the west.

    And I think the REAL Sony's dirty secret is why the square button really was sticky. I have to warn you, it's not safe for work and it's related to Gizmondo's name.

    Damn you typos! Damn you to hlee!
    Edited by 3 at 04/08/05 @ 01:45

  • tonynibbles #33 7 years ago

    @kanagarootoo ...and then you sign off with a reference to one of my favourite comedy films in years..

    +10XP

    And might I add. Do you have 'Wake up Ron Burgandy'. Its a whole new film on DVD, made out of excess footage from the first one. Its awesome if you're a fan :D

  • matt__jon #34 7 years ago

    Where can you find it?

  • draven #35 7 years ago

    personally i liked the look of the PSX better than the ps1, ps2 and ps3.. they need to make consoles fit into HE systems, not make them so they stand out like a sore thumb!.

  • Tommyc352 #36 7 years ago

    Boring!

    Many consumers will just wait to the damn thing comes out, and compare it with the 360 - end of!

  • bivith #37 7 years ago

    "some sources have suggested that Ken Kutaragi's repeated allusions to a high PS3 price point could be pushing Microsoft to ponder a higher launch price."

    What sources? You're just making this shit up now! Classic tabloid technique.
    Edited by 1 at 04/08/05 @ 09:35

  • Dizzy #38 7 years ago

    >will have more built-in functionality than its rival

    Oh wait... I think I missed that "extra" functionality??? What was that exactly?

  • Blerk #39 7 years ago

    some sources have suggested that Ken Kutaragi's repeated allusions to a high PS3 price point could be pushing Microsoft to ponder a higher launch price

    o_O

    Ken's trying reverse psychology on Microsoft? That's... not going to work.

    Wishful thinking on the part of gaming journos, I suspect. :-)

  • deaner #40 7 years ago

    Balor, they're not "dirty little secrets" - they have been in the news plenty. The false reviewing thing kicked off sometime last year if I remember rightly (though it's just now come to a conclusion).

    And they have nothing to do with SCE anyway.

    And Microsoft have done much more shady business in their past (and present).

  • Salvia #41 7 years ago

    It wouldn't surprise me if Balor et al were actually hired by MS to big up the 360. It seemed obvious that's what they did during the E3 presentation i.e. had paid 'cheerers' etc. that went wild over everything that 'embarassing uncle trying to be down with the kids' J Allard said.

  • deaner #42 7 years ago

    Seems a lot of the kids commenting on PS3 articles are just trying to downtread the console and rave about the 360.

    It's petty and childish, and not unlike Gates' business tactics.

  • deaner #43 7 years ago

    The man expresses confidence in his own company's product, and tries to explain why it's a better choice than the alternatives... but he doesn't get into any kind of smear tactics (like some).

  • Xerx3s #44 7 years ago

    "but whether that will justify a significantly higher price tag for many consumers is a theory that has yet to be tested." - I cant think of anyone that would pay that price for a BBQ.

    "I also have Balor on ignore, along with the other xbox fanboys such as Xerx3s and arnieofdarkness" - Wait. Moi? Ow cruel world, what have thy done to me? I own all 3 current gen consoles. In fact i prolly own more consoles than most ppl. And in my oppinion, the ps2 is overhyped and bad quality compared to the GC, xbx or even previous gen's such as the DC. On top of that, sony doesnt seem to know how to handle customers and just sue the living daylights out of them. If im only pointing out flaws and your putting me on ignore for that, then it sounds to me like your the fanboy here. In fact, if i was a fanboy, i would be a pc fanboy because no console can get to the lvl of the pc. Although i do like to make a spicy comment to provoke you ps2 fanboys once a day. A fanboy a day, takes then pain away. ;p

    What do you want me to say? That the xbx is huge? That its butugly? That it has lots of crap games and the controler was badly designed? Its all true. No really. I mean it. Its far from perfect. [...]
    Edited by 2 at 04/08/05 @ 11:05

  • Lex #45 7 years ago

    "famously commenting that he wanted it to be a device consumers would be prepared to work overtime to afford."

    Kind of ironic then if you work in the games development industry, you can work all the overtime you like and not get paid for it.

    No PS3 for me then.

  • SlackMaster #46 7 years ago

    Speculating about which console is better than the other and bitching about prices is pointless atm.

    The only issue I think that will have the biggest impact on success is that fact that the XBox 360 will be out this September with no other next gen competition until 2006 or possibly 2007 in Europe. It will be the most capable console on ther market until its competition turns up which means that all those people with money to burn may well buy it regardless of whether they like MS or not.

    Next year or possibly early 2007 is a big big lead, but then it gives people time to buy the 360 then save and buy the PS3 when it's released.

  • Blerk #47 7 years ago

    The only issue I think that will have the biggest impact on success is that fact that the XBox 360 will be out this September

    November at last count. And even that's unofficial. It won't be out in September. Not a chance.

  • Darren #48 7 years ago

    Why on earth would Microsoft consider pricing the Xbox 360 HIGHER if the PS3 sells at a more expensive price? If the PS3 is £400 over here and the Xbox 360 is only £200 then that's great news for Microsoft. They want to tempt people to buy it and build up a large userbase as quickly as possible prior to the PS3's launch. Selling it cheaper is the way to do that, not higher!!! lol

    If the games are fantastic then that is what will sell the machine ultimately not promised technical specifcations, work-in-progress "videos" and an I'm-twice-as-fast-as-you claim as Sony seem to think...
    Edited by 1 at 04/08/05 @ 12:21

  • kangarootoo #49 7 years ago

    " Ken does the same thing though. As does anyone selling against competitors."

    One thing I learned working for a big US corp back in my IT days, is that the CEOs of these giants are all f*cking nuts. They have to be to be successful at that level. They all hate their competitors and they all want ALL the money. I've been an Apple fan for years, but I don't doubt for a second that if Steve Jobs were in Bill Gates' shoes he would be just as monopolistic given the chance.

  • Freeman01 #50 7 years ago

    Balor, do you work for Microsoft or something? I notice your very quick to point out how naughty SONY are, I mean Microsoft wouldn't do anything underhand would they, no they're are very reputable company!

  • Dr_Fripp #51 7 years ago

    "And in my oppinion, the ps2 is overhyped and bad quality compared to the GC, xbx or even previous gen's such as the DC."

    Ahh, how I love the mark of an unbiased person...

  • Kengro #52 7 years ago

    They keep on rising the price and dropping stuff off the ps3... What the hell will be left ?? A ps1 on a new case

  • smelly #53 7 years ago

    why moan about the price? Keep playing ps2 games, then when there are lots of games you want on it, get one - at which point the price will be lower anyhows.

    Besides, im much more concerned about the GAMES prices. If games are going to retail at 60 quid (for example), if i buy 10, that's 600 quid. MUCH more than the hardware!

  • smelly #54 7 years ago

    .. oh and also, for you guys who keep going on about hdtv's.. you'll gonna need one of those too, which'll set you back a bigger whack than the console for starters..