Retailers and publishers call on Sony to reduce the price of its latest hardware in time for the peak selling season
While US and Japanese gamers continue to snap up PS3 hardware for as much as £150 cheaper than UK consumers, several leading industry execs have criticised the console’s controversial £425 price tag.
Duncan Cross, head of games at supermarket giant Asda, strongly believes that the Sony console needs a helping hand to fulfil its potential.
“I think for us and for Asda’s customers there’s no doubt that we’d like to have seen some price movement on PS3,” he told MCV. “The US have got a cut and we’ve got the games bundle but it’s just not the same. I think the console needs an extra something to really get it up to full speed.”
Retail contemporary Martin Baxter, head of games at Choices UK, has also called for a cut to galvanise sales before Q4 – but not yet. “I think the bundle will be enough to keep sales going in the short term, although ultimately a strong line-up of software and a price drop pre-Christmas would be key to trading through the peak period,” he told MCV.
“But our sales have more than doubled since the new Starter Pack was introduced. I think the value added message is a strong one and a price drop at this stage would not be the best move as this may send a negative message to the customers out there.”
Advertisement
But it’s not just retail concerned about the price; SCi CEO Jane Cavanagh added she would be happier if SCEE followed the US and Japan in reducing that £425 price point. “We’re absolutely of the view that Sony will succeed, without question,” she offered.
“It’s just a case of the timing. From our point of view, the acceleration of that installed base could be driven by further price cuts. The hardware is pretty expensive. As soon as we start to see cuts coming in, we’ll be more comfortable with the performance of PS3.
“The fact that the month after the US announced a price cut there was a doubling of hardware sales speaks volumes – and is incredibly encouraging. If we could have a similar price drop to the US, that would be a very positive first step.”
Comments
ITS CHEAP ALLREADY
ITS CHEAP ALLREADY
Talk to the goverment
They add over £90 of cost in VAT and Import taxes to the PS3.
Re: Talk to the goverment
And that matters how? Sony set the price. They could absorb a little of that cost and make the price cheaper. The government can't be blamed for everything.
Re: Cheap Already
Cost of PS3 on Amazon - £400. When I bought an Amiga in 1988 it was the same price and I didn't complain then either. The price will come down but it doesn't need to now. After all, if you want an XBox 360 (Elite) plus a HD DVD player you need to fork out nearly £440! What extra do you get for this price? A larger hard disk... (plus a console that breaks after 3 months - I had two replacements before I got rid of my 360 and bought a PS3). All the PS3 needs is some games that aren't the same old FPS or ports from the XBox and NOT a price cut. More quality Blu Ray movies would also help sales (after all my local HMV already has twice as many Blu Rays than HD DVDs at it's only a matter of time before HD DVD becomes obsolete).
Re: Cheap Already
The price needs to be lowered. The Uk does not have the highest GNP per capita. Within the industry branch (and compared to other european countries) they also don't spend the most on media goods. Games are usually at a similar price-point throughout europe (e.g. 70€ for a PS3 game in germany, 80€ for a PS3 special edition). Why should customers in the UK pay the absolutely highest price world-wide for the PS3 system? I think they should limit the Bundle to 1 or 2 months at most and then provide a price-cut for the system.
@Bob: And what if i dont need some device to playback HD-DVD's or Blu-Ray? With the PS3 i'm stuck, it's that simple. With the x360 i have a choice. And like in every product category, flexibility produces costs. The arguments you provide might be represantative for a small customer group but not for all
Re: Cheap Already
I think sony will probably introduce a price cut, as the peron from sci said its just a question of time(And money for that matter). Sony will know when the right time is, theyre just notting telling anyone when... after all it owuld affect sales now.
I reckon its either this christmas or when some big titles come out like Metal Gear Solid 4/Grand theft Auto.
Re: Cheap Already
@Jim - If you and every other Xbox owner don't get an HD DVD drive (or Blu Ray) for the X360 then games aren't going to progress. Next Gen consoles are going to need all the disk space they can get soon if you really want next gen games with better graphics, sound and HD FMVs. DVDs cannot provide this - they are already pushed to the limit. Using current compression techniques help but just slow down loading. With Sony introducing the Blu Ray into the PS3 in the first place, it really will help allow developers to push the boundaries sooner rather than later. In the not too distant future I predict xbox owners are going to be forced into buying something just to play new games on the console. And if that's the case many people are going to be forced to pay more than they would have done had they bought a PS3 in the first place. What you get with a PS3 at the moment represents value for money.
Prices for everything in the UK is higher than elsewhere - we just have to accept it. Slashing the price of the PS3 in the UK but not every other consumer good isn't the way forward and isn't going to help anyone except the big stores like Asda that will benefit from more revenue from increased sales. People just need a reason to buy the console and they won't care for the price. Better games is the start or may be a home brew kit Sony have no reason to cut the price at the moment when they know the console is lacking its killing app. They aren't stupid - when it comes (and it will) then will be the time to get the market moving.
Re: Cheap Already
http://www.mcvuk.com/news/28057/Now-Epic-questions-360-disc-capacity
See Jim - It's started ALREADY!!! You're going to need to invest in that HD drive sooner that you think.
Oh I also forgot to mention in my arguments that it's cheaper than the equivalent XBox that with the PS3 you don't have to pay an extortionate price to play online because with the PS3 it's free. Yet another tick in the box for the PS3.
Leave a Comment
HOT TOPICS
PS3 Slim already in production? 11
Pachter: PS3 will trump 360 by 2015 11
Warner Bros boss questions pre-owned 9
‘80s home computer war becomes comedy show 9
US: Sony's PS3 titles struggle to hit 1m 9
UK console installed base tops 24m 6
Sony planned UMD-free PSP 'from the beginning' 5
Reborn Woolworths bursts into life 3
Last.FM free to XBL Gold members 3
Blu-ray sales boom in UK 2
RELATED STORIES
PS3 price drop confirmed; 40GB pack revealed 27
Sony denies drop in PS3 production 86
PS3 gets 1.80 firmware update 1
Guitar Hero III to rock this Autumn
PS3 video downloads loom 1
80GB PS3 set for Korea 8
Sony’s operating profits fall 68 per cent
Metal Gear 4 delayed?
PlayStation 4 rumour is “garbage” 1
PlayStation Home Beta kicks off in Europe 5
ABOUT US
MCV is the leading trade news and community site for all professionals working within the UK and international video games market. It reaches everyone from store manager to CEO, covering the entire industry. MCV is published by Intent Media, which specialises in entertainment, leisure and technology markets