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Stringer: Kotick "makes a lot of noise" News
PlayStation 3 News by Robert Purchese
Sony godfather Howard Stringer has dismissed threats made by Activision boss Bobby Kotick to pull PS3 support unless the console drops in price.
"He likes to make a lot of noise," said Stringer at a conference last night, reported by Reuters. "He's putting pressure on me and I'm putting pressure on him. That's the nature of business."
When asked about the logic of not competitively lowering the price, as Sony appears to have no indication of doing, Stringer responded, "I (would) lose money on every PlayStation I make - how's that for logic?"
Rumour, however, suggests Sony is readying a PS3 Slim for the autumn. And in order to make way for the new hardware, existing 80GB PS3 units will be discounted so retailers can clear stock.
Put us out of our misery; stop Stringering us along.
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Comments: 1-24 of 24 in total
Poster
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+4
"I (would) lose money on every PlayStation I make - how's that for logic?"
Given everyone but Nintendo does, quite logical. Price drop means more sales, more sales means more games sold, more games sold means more licencing money. That's how it works, good sir. it's all about balancing a price drop with how many more games you think you'll sell.
Edited 1 times,
most recently on 08/07/09 @ 14:58
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+2
Revenue vs Profit, increased revenue from higher sales of consoles and games may or may not give greater profit than the profit margins at present given current console sales and game sales. If this is the case and Sony don't see a massive rise in console and game sales they can't really put the price up again to correct it.
Maybe someone in Sony knows what they are doing...maybe not though |
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0
Assuming Sony are still losing $10-$20 per unit at the current price, cutting a further $100 off of that is clearly not feasible.
That's a lot of software revenue needing to be generated in order to cover the shortfall, especially when revenues from the PS3's major secondary selling point (Blu-Ray) aren't going to directly feed back into the the Playstation business's coffers. Subsidizing the PS3 in order to prop-up Blu-Ray made sense while that format was being established, but now that business should be standing on its own and in fact be doing the reverse: helping drive PS3 hardware sales through its popularity. |
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chessboxer
08/07/09 @ 15:01
+4
@ Grey Beard
They currently lose $40 on every PS3 at the moment. Sony have said time and again the they are not dropping the price but people never listen so they get their hopes up, then complain when it doesn't happen. |
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chessboxer
08/07/09 @ 15:41
+1
I don't think Sony will remove anything else from the PS3. There isn't much they can take away from it. It will always have the Blu-ray drive and a HDD. It can't have less than 2 USB slots and it no longer has a memory card reader. All they can do now is wait until they can manufacture the Cell and RSX on a 45nm process.
If the PS3 slim is real (and they are mass producing on 45nm) then I'm not sure how much cheaper this slimline will be. Wasn't PS2 Slimline more expensive than the (at the time) current RRP of the PS2 phat? My memory could be failing me but I don't think the slimline was cheaper when it first came out. |
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Shakey_Jake33
08/07/09 @ 16:37
+2
^It's not quite that simple when the business of publishers and developers rely on the performance of the 'big 3'. I think any publisher is well within their rights to voice discontent. Remember, it's the publishers this time who are calling for a price drop, with their own investment in the format not paying off as much as it should.
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-2
@ Sniper Fox
Even cars go down in value as they age. A 1999 Porsche isn't worth today what it was in 1999. Why would consoles or PCs be any different? The PS3 isn't getting better every year, thus justifying the continued high price tag - so why wouldn't it drop in price? Do you also expect standard definition TVs from 1987 to be the same price today as they were in 1987? |
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-3
@SAH1977
SAH1977: Will someone buy my bike for £50? mega7ech: Hey SAH1977, I'll buy your bike but only if you sell it me for £25! SAH1977: No no, I couldnt sell it that cheap. mega7ech: Ok, well I dont want it then. SAH1977: Oh go on, I really could do with selling it now. mega7ech: £25. SAH1977: I cant its too cheap, my friends have already sold thier bikes and I need some money... mega7ech: Sell it me for £25 then! SAH1977: No I wont! mega7ech: Well Ive heard rumours, prob from your friends, that you will eventually take £25 for if I just hold out for a bit.. SAH1977: Well they're wrong I definatly wont drop the price... mega7ech:.......ok.......I'll just wait...... SAH1977: OK £25 mega7ech: Sold! - HA HA I WIN!!! |
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-2
if you were loosing money get ur tech straight before u bring it out in the public just to catch up with MS console and only and stay back in the money making. One way or the other they are making shit tight in order to be in this gen competitive with what..? Is this practcally a PS console worth its money or a media player? Offers a BR player but still.. it is worth for the "casual gamer"? is it worth when they cost of game production is too high and the PS3 owners dont have the chance to buy games left only for a 360 and never transfered to the PS3 cause now other than the factor that they had before to face of it being harder to develop is also not money worth making for them either as much..?
Lke i said so many times before, Sony can't think anymore as a gamer's perspective clearly at all anymore. There are the hardcore gamers out there WILLING to also pay a lot for their console ( without meaning they get any more games or anything from the 360 plus embarassing when years after and still most crossplatform games look better and are more stable on the 360.. ) but thank god there are still some that can work their freaking brains and not pay it big to Sony yet. Hopefully that will teach them on the next round of consoles to play nice and fairplay for us and make it more competitive. I MIGHT get a PS3 in a couple of years if the price is way loer and its worth also when it comes to titles released for it other than the couple exclusives that i might be interested in. but then again when you think about it, by that time we will be way too much sucked into this gen , the next consoles being worked on adn announces plus the fact that at least as a 360 owner ( personally speaking now more.. ) ill be experementing with everything that comes out for Natal so ill be busy on my free time once again... So yeah Stringer, for the sake of your company , your job and my gaming.. Why dont you think about this before you ppl release a console, really O.o |
Comments: 1-24 of 24 in total
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