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Kutaragi defends PS3 price News

PlayStation 3 News by Ellie Gibson

11 May, 2006

SCEI president Ken Kutaragi has declared it will be up to us gamers to decide whether the PS3 is worth the asking price - as we did when the original PlayStation was released.

In an interview with the Nihon Keizai Shimbun, Kutaragi said: "Price setting is always a headache for us. No game machines are comparable to the PS3, which is neither a genuine game console, home electronics [product] nor a personal computer. It is a new kind of product."

The PS3 is set to launch globally this November, priced at $499 / €499 for the 20GB version or $599 / €599 for the 60GB model.

According to Kutaragi, it will be "consumers who decide whether it's expensive or cheap. If a product offers charm, then buyers will be convinced."

Kutaragi then referred to the original PlayStation, which launched in December 1994 with a price tag of ¥39,800 (€280).

"With Nintendo's 16-bit machine selling for about ¥12,000 (€85) at that time, the media criticised us for priciness - but it became an explosive hit."

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Comments: 1-50 of 94 in total | next 50 »

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coojam
11/05/06 @ 20:17
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But the PS3 is TWICE that.
ecureuil
11/05/06 @ 20:17
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I personally won't be buying it for that price, but a hell of a lot of people will.
spazmo
11/05/06 @ 20:18
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"If a product offers charm, then buyers will be convinced."

Oh well, the PS3 is fucked...

alimokrane
11/05/06 @ 20:19
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relying on history as an argument shows how stupid sony has become! things change and most importantly people change.
Edited 2 times, most recently on 11/05/06 @ 21:20
Jo0j
11/05/06 @ 20:21
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no sale
Scimarad
11/05/06 @ 20:22
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Ahhh, the usual brand of comments thread nonsense I see:-)

At least some things are reliable.
Yossarian
11/05/06 @ 20:23
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A NEW KIND OF PRODUCT

*adds that to Ken's list of quotes
Tejstar
11/05/06 @ 20:26
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@ coojam: But if you adjust for inflation, that's equivalent to just under €400 in today's money.
Edited 1 times, most recently on 11/05/06 @ 21:46
Hughes.
11/05/06 @ 20:33
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Wow, the PS3 will cost about the same as the PS2 did, the end of the world is at hand!

Any of those cretins who declaimed with absolute certainty that the Blu Ray in the PS3 would make for a minimum cost of £600 UKP like to pipe up at this point?

If releasing cripple packs nobody wants is a crime there are some guys in Redmond VA who should get their collars felt first. Like anyone with half a brain, I'll wait out the inevitable undersupply problems and buy a 60GB after a the first price drop. The videos I've seen show I won't be missing much games wise in the first months of the machine anyway.
peterfll
11/05/06 @ 20:33
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Comparing the pricing of the PS One with the SNES and in the same context comparing the PS3 to the 360 is not a fair comparison.

Was it me or was he being badly translated (or does he speak pigeon English)?
Edited 1 times, most recently on 11/05/06 @ 21:33
11/05/06 @ 20:34
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Well Ken, there's still a leap from 280 euro's to 499.

The PS3 as it stands has completely priced itself out of the market imho. I'm interested in it, but not at that kind of cost. Sorry Sony.
Danj
11/05/06 @ 20:36
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Do we know what the official UK price will be yet? Converting it from Euros it should be around £409, but I was wondering if they'd just round it down to £399?
Scimarad
11/05/06 @ 20:43
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I'll say it again - What essential game playing features are you losing by buying the cheaper one??

Er, sod all I believe. Calling it a 'tardpack' or 'cripplepack' is pretty damn stupid as it's not as if they left out the HDD or anything...
Hughes.
11/05/06 @ 20:48
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No HDMI and no WiFi sounds pretty crippled to me.
jack_klugman
11/05/06 @ 20:48
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Converting it from Euros it should be around £409, but I was wondering if they'd just round it down to £399?

More likely round it down to £499 I fear.
ROG27
11/05/06 @ 20:49
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Wow...so I guess its not a value at that price...

Either that, or it seems most people are confused. It's definitely the latter.

The PS3 is the most capable game machine with the best content, a blu-ray player, and wait, wait, this is the one most people don't know yet, also a Linux-based personal computer with mouse, keyboard, and full peripheral support. And wait, there's more: it's also a Location-free Server!

How the hell are people saying $500-$600 is a bad deal for this? It's definitely not a console in the traditional sense. People are confused.

@Hughes...you don't need Wi-fi to use full-speed broadband and you don't need HDMI to have 1080p picture and digital sound.
Edited 1 times, most recently on 11/05/06 @ 21:50
Scimarad
11/05/06 @ 20:49
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"No HDMI and no WiFi sounds pretty crippled to me."

Really? My 360 does pretty well through component. And what exactly would you be using the Wi-Fi for?
Edited 1 times, most recently on 11/05/06 @ 21:50
Azazel
11/05/06 @ 20:50
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Um Ken... It kind of looks like a games console is the only thing...
Hughes.
11/05/06 @ 20:52
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What is the point of having a Blu Ray player that won't output a Hi Def image? And I would use WiFi for PSP connectivity and networking, thanks for asking.
ROG27
11/05/06 @ 20:54
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What don't you people get about Component supporting 1080p and optical out supporting dolby digital surround sound? The only thing that could potentially restrict this is ICT (Image Constraint Token), which is not being implemented by any of the studios supporting Blu-ray (which is mostly all of them) for the foreseeable future.
Nikanoru
11/05/06 @ 20:55
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No game machines are comparable to the PS3

Roflz there we go again. Your shiney PS3 is nearly identical in specs to the Xbox 360, guy.

blargh
the creeper
11/05/06 @ 20:58
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While everybody shouts about the price, does anybody want to bet that it's not going to sell out when it's released? It's actually pretty simple economics: supply and demand. For example:

You know you're going to have two million PS3s ready for launch. If you priced it at 400 euros, then there might be demand for 10 million at that price. If you price it at 600 euros, then demand will fall to 3 million worldwide. Since demand will still outstrip supply, you're still going to shift all of your units, and make more money (or rather, less loss). Where's the incentive for Sony to sell it for less at launch?

When demand starts to dry up at that price, we will then see the first price cut. And even if you don't think it's worth that money, I bet there's 2 million people on this planet who are prepared to pay it.
Scimarad
11/05/06 @ 20:58
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Now I don't think it's fair judging Sony consoles by the insane crap spouted by Ken Kutaragi :-)

And hughes, do you or are you planning to own a 360 or Wii? Because I don't think either of them have Wi-Fi networking either and will, I suspect, miraculously manage to be good machines.
Edited 1 times, most recently on 11/05/06 @ 22:01
Foxclose
11/05/06 @ 21:04
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Ken's right: It is the consumer that decides if the price is expensive or not.
Like it or not, the PS3 looks like to be a success at launch at these high prices. (4 million units by the end of the year worldwide is hardly a lot!)

But maybe this time next year, price drops will make this more an affordable option to the casual mass-market. (I also expect the PS3 to surpass the Xbox 360 in graphical looks this time next year.) You can't compare first wave of PS3 games with this year second to third wave of Xbox 360 games.


Sko
11/05/06 @ 21:08
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"Comparing the pricing of the PS One with the SNES and in the same context comparing the PS3 to the 360 is not a fair comparison."

Yeah, kinda made me blink a few times, too.
smelly
11/05/06 @ 21:12
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I personally thought the ps2 was worth 500 quid, after all what over console gave you ACTUAL emotion in the games?

*cough*
WicKeD
11/05/06 @ 21:14
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Kutaragi defends PS3 price - by replacing the rumble with a load of ramble!
bloodflowers
11/05/06 @ 21:20
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Too much money. People said the Xbox 360 was too much money, but this is taking the piss. It's like the product has gotten out of control and forgotten what it is - a games console. Blu Ray? High def? Sorry, I just don't give a damn - I want enjoyable games, and I want devs to master using the pixel area they have instead of shovelling us jerky games at even higher resolutions that make zero difference to the experience. If anyone thinks every game will be as smooth as GT4-HD, don't swallow that one. I wish it were the case. I find their vision of gaming, passes me by, and no amount of Tiger Woods grinning just like on TV is going to change that.

Well done, you made Microsoft seem innovative.
souljah
11/05/06 @ 21:26
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"I personally thought the ps2 was worth 500 quid, after all what over console gave you ACTUAL emotion in the games? "

My old commodore used to bring out real emotions as well.

Mainly tears and anguish, but emotions none the less :)
RS3York1
11/05/06 @ 21:26
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Foxclose: "You can't compare first wave of PS3 games with this year second to third wave of Xbox 360 games. "

No one from the media to the fanboys had a problem doing this when they pretended that Killzone & Motorstorm @ E3 '05 were real.

Furthermore, you can't expect the average consumer to walk into a store and say "well, those are launch titles sooo..it's ok". The *price* speaks for itself. Consumers will see the price gap, then see that the cheaper box has better graphics (Gears of War FTW) and forgo the PS3. Yes, the hardcore will buy the PS3 even if it cost 800 Euros but you don't build substantial marketshare on the hardcore segment.
Sl1pstream
11/05/06 @ 21:31
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"With Nintendo's 16-bit machine selling for about ¥12,000 (€85) at that time, the media criticised us for priciness - but it became an explosive hit."

or

"All of our shit is overpriced, are you really that surprised?"
JA$ON
11/05/06 @ 21:31
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Fuck off Kutaragi, and take your overpriced console with you!
CUNT!

Whats that you say ken? No game machines are comparable to the PS3.
LMFAO! CUNT!
FredMT
11/05/06 @ 21:31
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Dear Mr. Sony Man:
Your biggest mistake is making 2 consoles. Stupid, stupid, stupid...
ROG27
11/05/06 @ 21:38
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bloodflowers...maybe you didn't realize but Sony is delivering on innovating gameplay. I will let you know that the Naughty Dog game you saw in a teaser trailer was actual unscripted gameplay (just captured for a trailer at dynamic camera angles) and that Lair was an actual, in-game cutscene.

MGS4 also is using the in-game engine for the cutscene.

You should also take a look at Heavenly Sword, War Devil, Heavy Rain, and Assassin's Creed...which are all PS3 exclusives right now...all have in-game, realitime cutscenes or gameplay for viewing on a number of gamesites. Gametrailers and Gamespot have great coverage if you are wondering.

Why don't you review what you saw here again before making that blanket statement like not promising innovative gameplay? You will definitely see that PS3 is the most powerful system out there in absolute terms and that these upcoming games are even nicer looking than halo3 and gears of war. They are what is showing pre-launch, too!

effinwooly
11/05/06 @ 21:48
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twat
dr_faulk
11/05/06 @ 21:48
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"What is the point of having a Blu Ray player that won't output a Hi Def image? And I would use WiFi for PSP connectivity and networking, thanks for asking."

Jesus, I never thought of that.... Man, pricing system is bullshit. The whole thing is a mess. Where were the days of simple console buying?

Actually, the article was wrong stating that the PS1 was €290. It was IR£300 (Irish pounds), which is..um, €380?

As expensive as the PS3 is (the €600 pack), you kinda are getting value for your mone, especially as a blu ray player. Of course, just as a games machine it's probably worth half that.
Diabeu
11/05/06 @ 21:48
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Got to agree with bloodflowers

admir
11/05/06 @ 21:49
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when you buy the ps3 you will get
ps1,ps2,ps3,dvd player, umd player


when you buy the x360 you will get

xbox,x360,dvd and to get HD you will have to buy HD-DVD drive which will be about $ 200 or more.

so please dont say its a high price its up to me or you
bloodflowers
11/05/06 @ 21:52
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"MGS4 also is using the in-game engine for the cutscene."

ROG27: Please look at the above sentence. The clue, is in the name. Innovation does not mean releasing sequel after sequel. I've seen the various trailers, there's very little groundbreaking or interesting - it's all the same old thing, just the graphics are more shiny. Seamlessly integrating online play with the whole system - now that was innovation, even if otherwise Microsoft share a lot of the same problems as Sony.

You're the best and most amusing new fanboy I've seen on EG, please be sure to keep taking the pills Sony sent you! Some of the rest of us have actually been around in gaming long enough to know when we're being served up last nights dinner.
Carlo
11/05/06 @ 21:53
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So people demand ever increasing graphics capabilities, more physics, richer environments, and more than just a gaming console, but a 'full-blown entertainment system'.

Then they complain it costs more.

Err... WTF?
SwedBear
11/05/06 @ 21:55
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Are you for real ROG27? You really swallowed every little thing Sony has said about the PS3.

"It's definitely not a console in the traditional sense."

Of course it's a console. What do you think it is?

"The PS3 is the most capable game machine with the best content"

It's not even out yet and you claim it has the best content? The games so far look no better than Xbox 360 games. True, it has the CELL processor but contrary to what Sony first bullshitted about it's not the invention of the millenia . Heck, read up what developers so far said and the picture painted is that both have their weaknessess and strenghs and that both can produce great looking games. As for the games, both again has strong titles coming. I already am playing several kick-ass games and have several more that I'm excited about on the Xbox 360. It really comes down to taste.

So far the strong point is the blue ray player but thena gain, we don't know which format will "win" and I will have the choice of adding a HD DVD to my Xbox 360.

"wait, this is the one most people don't know yet, also a Linux-based personal computer with mouse, keyboard, and full peripheral support."

Yes, I think most am aware that linux was mentioned but just as with the linux kit to the PS2, who do you actually think will use it? Got a good link BTW giving info aobut this wonderful linux based computer the PS3 can turn into?

"And wait, there's more: it's also a Location-free Server! "

Huh? What the hell are you talking about? Link please.

So far I still think the PS3 is to expensive for me. I'll wait until it drops a bit in price.
Edited 1 times, most recently on 11/05/06 @ 22:58
the creeper
11/05/06 @ 21:56
#42
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Sorry admir, the PS3 is many things but I don't think it's a umd player. I think the PSP is condemned to be the only UMD player ever made. But that's OK - I love my PSP anyway :-)
SeesThroughAll
11/05/06 @ 22:09
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"Your shiney PS3 is nearly identical in specs to the Xbox 360, guy."

LOL, the PS3 CPU runs at nearly twice the speed of the 360 one. What good is processing power for? Better A.I. and better physics come to mind.

Still, I also think the price tag is excessive.
Edited 1 times, most recently on 11/05/06 @ 23:09
RS3York1
11/05/06 @ 22:14
#44
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"LOL, the PS3 CPU runs at nearly twice the speed of the 360 one. What good is processing power for? Better A.I. and better physics come to mind. "

Que? You're wrong on 2 levels comrade.

1. Both the PS3 & Xbox 360 have CPU's running at 3.2Ghz
2. Processor speed alone is a poor indication of performance between chips if they aren't the same fundamental chipset. So you can (typically) say that a 3Ghz Pentium 4 is better than a 2.5 Ghz Pentium 4, but you *can't* say that a 3Ghz P4 is better than a 2.5Ghz Athlon XP.

Similarly, the different designs between the CPUs in the PS3 & Xbox 360 mean merely looking at clock speeds is moot at best, outright foolish at worst.
Edited 3 times, most recently on 11/05/06 @ 23:16
Carlo
11/05/06 @ 22:15
#45
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For those of you who want to draw your own conclusions on teh (still to be completely confirmed) techical specs, I suggest you go here:

http://en.wikipedia.org/wiki/History_of_video_games_(seventh
_generation_era)
yonno
11/05/06 @ 22:15
#46
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so far i cant see the benefit of buying ps3 over 360, what are you getting for the extra money, they still havent shown any gameplay footage of note
SeesThroughAll
11/05/06 @ 22:18
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Similarly, the different designs between the CPUs in the PS3 & Xbox 360 mean merely looking at clock speeds is moot at best, outright foolish at worst.

I was thinking in terms of MIPS, not clock speed.
WicKeD
11/05/06 @ 22:18
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As a matter of fact the CELL runs at the same speed as the Xenos, 3.2GHZ.

I think what you was trying to get at is theoretical peak performance and for that, well I'll just let John Carmack explain how misguided you are... Watch!
drumbaby
11/05/06 @ 22:20
#49
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How long will the Xbox 360 be in service? 3, maybe 4 years? How much does 3 to 4 years of Xbox Live cost for the person who likes to game whenever the mood takes them?

I guess as long as the online demographic of the Xbox 360 remains at last gen's lowly 10% then the large saving your minority PS3 onliner makes on free online over the course of the PS3's life isn't even a valid argument.

But if that's the case, so much for making a big thing out of how essential Xbox Live is as an Xbox 360 feature. You may as well not have it unless hardcore, or a weekend warrior, right?

My aim's not to knock either console...but what you spend on certain things, you save on others, and vice versa. It evens out over the course of a console's life span.
WicKeD
11/05/06 @ 22:23
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Your theory is flawed, Xbox Live Silver is free.

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