Why is everyone wanting Sony to lower the PS3 price?

[Sylon04]

Ok, I understand, the PS3 isnt cheap. Especially compared to the Wii and XB360. And Activision CEO has made threats to cease the production and support of games for the PS3 if Sony doesnt lower the price. I understand why they are wanting Sony to do that, however I don't think they understand why Sony isnt. I was reading an article last week about products that companies make that actually lose them money. The Sony PS3 had the worst loss of all the products listed. Compared to the cost of the components inside and to produce, Sony loses $300 per console unit sold! And Activision wants them to lose more? That will put the console out of existence.

Now, the price of the PS3 many not bother me as much because I didnt have to spend money out of my pocket to buy mine (long story, but basically mine was purchased with extra money). But when it comes to me wanting my friends and family to buy one, yeah that can be hard. But still, I dont blame Sony for not lowering their prices. I enjoy the PS3 too much to let them risk losing everything just to make 1 video game maker happy (even though that maker makes my favorite game).


I cannot find the article about the Sony losing money on each console, that was 6 days ago. But here is the chatter back and forth between the 2 CEOs of Sony and Activision:

http://www.engadget.com/2009/06/19/activision-threatens-to-drop-sony-if-sony-doesnt-drop-ps3-and-p/

http://www.reuters.com/article/technologyNews/idUSTRE5670C120090708?feedType=RSS&feedName=technologyNews

[zapata2119]

shit technically the 360 arcade is just as much money and the ceo of activision has always been an idiot when it comes to empty threats he's just trying to help the consumers out by putting pressure on sony

and actually in reality activision made more money off of the ps3 last year then the 360.

here is what bioware had to say about it: http://www.computerandvideogames.com/article.php?id=219357

[Brice63]

the ps3 is worth every penny
i don't really see how they will make it cheaper without causing sony massive problems

[Dano]

I can't see them loosing 300$ per console sold lmao. The chinamen making it aren't that expensive. The parts are all mass produced resulting in a much cheaper cost.

On the topic of waiting for prices to go down before buying, my reasoning is because I probably wouldn't use it that often, and I'm trying to get my car on the road for next spring so all my moneys going to that. :)

But when you compare it to the cost of a blue-ray player, it definately isn't that expensive.

[Sylon04]

I can't see them loosing 300$ per console sold lmao. The chinamen making it aren't that expensive. The parts are all mass produced resulting in a much cheaper cost.

On the topic of waiting for prices to go down before buying, my reasoning is because I probably wouldn't use it that often, and I'm trying to get my car on the road for next spring so all my moneys going to that. :)

But when you compare it to the cost of a blue-ray player, it definately isn't that expensive.



It took me forever to find the damn article, but here, scroll to the bottom:

http://finance.yahoo.com/family-home/article/107263/consumer-electronics-teardowns.html;_ylt=AowcE.L3pF8buxoyMZFfUIOCfNdF


And these are similar articles from a couple years ago:

http://www.reghardware.co.uk/2006/11/16/isuppli_prices_up_ps3/

http://gizmodo.com/gadgets/home-entertainment/ps3-a-bargain-worth-840-powerful-as-a-supercomputer-215203.php

[damen]

in all fairness, that is what they WERE losing, per console, when it first hit
those numbers are definitely lower now

[Sylon04]

Yeah, but still. I was reading a little bit of a newer article saying that Sony is expected to finally take a profit on the PS3 sometime this year. Of course, that all depends on the strength of the US and Asian markets.

[Alextation]

When the ps3 first came out they even said on G4 i think it was that sony was losing money per console. They need to bring that play tv thing to the states.

[zapata2119]

play tv won't do anything as of now sony only loses around 40 bucks per console if you look at your links sylon they are comparing the 20gb and 60gb ps3s (which haven't been around since 07) not the new 80gb they only thing that will sell ps3's is advertising the hell out of it and unfortunately sony is horrible in that department