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PS3 launch price of $300-400 confirmed by Howard Stringer

Arreat

By Arreat
in Yoda’s Swamp

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Lynk Former Newbie

Lynk Former

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XD Apparantly the Xbox360 is selling at a loss of 126USD with each console, expect the PS3 to be worse. And I know what some of you are going to say "who cares if the company is selling it at a loss, we get something expensive for cheaper!"

 

Yeah, and then you get all the crap that happened to the PS2, all those stupid defects and problems, people having to return their PS2s because they didn't work in the first place, stopped working or worse, actually damaged game discs. Once you start selling something at a loss, the only way to make it as cost effective as possible is to cut as many corners as possible.

 

I'm sure there will be a lot of you that won't have a problem with your PS3 initially, but thee'll be another group of you which will have some bad stories to tell about how you had to return yours or try to get it repaired, etc.

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TiE23 Newbie

TiE23

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While I come across as an Xbox fanboy, I'm really not...

You play "Pimp My Ride" with your Xbox... :D

 

 

Well, in similar news, Microsoft looses $126 on each 360 (and you say they were money mongers?)

 

Microsoft’s newest gaming console marks an improvement on the earlier version in some decisive ways. To name a few, the pricier Xbox 360 is sleeker and more powerful (see BW Online, 11/22/05, "Xbox: How It’s Designed to Thrill"). And unlike its predecessor, the Xbox 360 is being released months ahead of the comparable next-generation console from Microsoft’s chief gaming rival, Sony.

 

But when it comes to profitability, the new machine won’t change anything. Microsoft will carry on its tradition of taking a loss on the console, according to a preliminary analysis by market researcher iSuppli.

 

An up-close look at the components and other materials used in the high-end version of the Xbox 360, which contains a hard drive, found that the materials inside the unit cost Microsoft $470 before assembly. The console sells at retail for $399, meaning a loss of $71 per unit -- and that is just the start.

 

Other items packaged with the console -- including the power supply, cables, and controllers -- add another $55 to Microsoft’s cost, pushing the loss per unit to $126. These estimates include assumptions that Microsoft is getting a discount on many components.

Ehh...

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Kain Newbie

Kain

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Which brings us back to my point http://xbox360.1up.com/do/newsStory?cId=3145847

 

It's not gonna be pretty once the PS3 finally comes out.

 

Maybe thats why Sony is waiting until after the holidays and such before releasing PS3.

 

Not that I'm accusing Microsoft of rushing the system, glitches and crashes and bugs and all, just so its out now and about for the holidays. :dozey::¬:

 

And we don't have proof that Microsoft is loosing money on anything. Its not very buisness-saavy to continue production of something thats costing them money. Until I see Bill Gates holding up a bill that has a net-loss at the bottom that is signed by him and the losses circled in hot-rod-cherry-red, I'm going to live under the pretense that, as a multi-billion dollar industry, Microsoft is giving us the short end of the stick.

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CapNColostomy Newbie

CapNColostomy

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So your point is the PS2 plays DVDs and the GameCube doesn't?... Obviously the PS2 didn't HURT DVD sales, that would be pretty impossible, but it was clearly suggested earlier in the thread that the PS2 had a big and in brining forth DVDs which isn't true. It is true that Sony included the ability to play back DVD movies on the PS2 because they wanted to further a format they had invested in, but when it comes down to it, the movie makers are the ones who ultimately brought it forward. On the other hand...

 

No, that's not my point at all. I just figured since we were pulling things out of our asses to argue about that I'd mention your precious Nintendo. Afterall, nobody once chimed in championing the PS2 as a good DVD player. But anyway, I got to looking around and found a portion of an article about the history of the DVD that I thought you might find interseting.

 

"By the spring of 1999 the price of a DVD player had dropped below the US$300 mark. At that point Wal-Mart began to offer DVD players for sale in its stores. When Wal-Mart began selling DVDs in their stores, DVDs represented only a small part of their video inventory; VHS tapes of movies made up the remainder.

 

As of 2005 the situation is now completely reversed; DVD sales make up the bulk of gross sales and VHS is a slim minority. The price of a DVD player has dropped to below the level of a typical VCR; a low-end and relatively quality player can be purchased for under US$50 in many retail stores and many modern computers are sold with DVD-ROM drives stock. Most, but not all, movie "sets" or series have been released in box sets, as have some entire seasons or selected episode volumes of older and newer television programs.

 

DVD rentals first topped those of VHS during the week of June 15, 2003 (27.7M rentals DVD vs. 27.3M rentals VHS). Major U.S. retailers Circuit City and Best Buy stopped selling VHS tapes in 2002 and 2003, respectively. In June 2005, Wal-Mart and several other retailers announced plans to phase out the VHS format entirely, in favor of the more popular DVD format. [2]

 

According to the Digital Entertainment Group (DEG), all DVD sales and rentals (films, television series, special interests, etc) totaled $21.2 billion in 2004. The sales portion of that was $15.5 billion. In comparison, the total 2004 US box office for theatrical rentals was $9.53 billion (per the National Association of Theater Owners or NATO). While the growth of theatrical films on DVD has cooled recently, that of television programs and music video has increased dramatically.

 

In 2000, Sony released its PlayStation 2 console in Japan. In addition to playing video games developed for the system it was also able to play DVD movies. This proved to be a huge selling point because the PS2 cost about the same as DVD player but it could do a whole lot more. As a result, many electronic stores that normally did not carry video game consoles carried PS2s.

 

Following on with this tradition Sony has decided to implement one of DVD's possible successors, Blu-ray, into its next PlayStation console currently known as the PlayStation 3. Microsoft's Xbox, released a year after the PlayStation 2, also had the capability to play DVD discs with an add-on kit, cementing the DVD's place in video game consoles."

 

So yeah, I'd say that PS2 and DVD did more for each others sales than what you'd care to admit, or have anyone else believe. Of course I'm not saying that PS2 is entirely responsible for DVD's popularity increase, because that's just retarded. But if you build a popular, kickass video game machine, that doubles as a cheap alternative (insert player format here) player, it's only common sense that said format will do well if the machine is popular. The Playstation is popular. According to a recent documentary about the history of video games that I watched, DVD players and DVD's were gathering dust on the shelves in Japan UNTIL the release of the PS2, because standard DVD player prices were too high. Next you'll be trying to tell me that PSP movies aren't selling well because of the PSP, but because of some other jackassery I suppose. Good argument, but not one I'll be involved with.

 

Good day to you, sir.

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Lynk Former Newbie

Lynk Former

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Oh wow, so because I'm a Nintendo fan I'm suddenly going after Sony for no apparant reason? I wasn't even going after Sony in the first place, just putting the point that movies did more for DVDs than the PS2 did. There are people out there who make it sound like the PS2 was the thing that made DVDs take off, it's the opposite, DVDs were the thing that drove the PS2 to take off. And that large chunk of text just highlights that fact. DVDs succeeded before Sony, and as a result allowed the PS2 to gain a boost in sales, but Sony didn't affect the success of DVDs... unless Sony has the ability to affect the past through the present (at the time).

 

And this is pretty damn pointless when toms has alraedy spelt it out pretty damn well in the first place.

PS2 helped dvd sales (in a small way) and DVD helped PS2 sales (in a small way) but in the end neither was that crucial to the other. And the combination turned out to be not that great anyway.

 

 

 

Oh and don't worry you can give my "precious" Nintendo as much crap as you want, just as long as you have the facts to back it up.

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toms Newbie

toms

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if the ps2 had any effect it may have been to reduce the price of DVD players... cos once you could get a PS2 for the price of a dvd player it became necessary for dvd players to get cheaper to appear to offer better value.

 

DVDs DID get off to a very slow start, and it wasn't until there were cheaper options in terms of players (either ps2 or others) that they started to skyrocket to the mass acceptance they have now.

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CapNColostomy Newbie

CapNColostomy

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DVDs DID get off to a very slow start, and it wasn't until there were cheaper options in terms of players (either ps2 or others) that they started to skyrocket to the mass acceptance they have now.

 

Jeebus Effin Cripes! Someone who knows what the hell they're talking about! Awesome job, toms.

 

@Lynk...

 

Fact:The PS2 is a better DVD player than a Gamecube.

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Lynk Former Newbie

Lynk Former

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A lot of people were buying DVD players at the time when the PS2 had come out. What Sony did was launch at a perfect time when DVD players were in demand, which means the PS2 road on the success of DVD, the fact that it became accepted by the public came from the fact that it was officially made the standard long before the PS2 came out. So like I have said before, unless Sony can affect the past from present day events, they couldn't have led DVD to success. It's the other way around. It is a very different scenario with the PS3 where Sony is taking a format that HAS competition, putting it into their console and hoping this will get people to accept it as the new standard.

 

Very different from how it was for DVD.

 

 

@ CapNColostomy: Hate to break it to you but the GameCube has nothing to do with DVDs, it uses a proprietary format. So how is what you saying a fact? Looks more like an attempt at being spiteful that isn't quite working.

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Lynk Former Newbie

Lynk Former

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XD *snickers* But then if something that doesn't play DVDs isn't a DVD player, how can it be a worse DVD player if it isn't even classified as a DVD player in the first place? Which means it is a disputable fact.

 

However an indisputable fact would be "The PS2 is able to play DVDs, the GameCube is not." Which brings me back to my earlier question. What does the GameCube have to do with any of this?

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