Posted March 16, 2009 Sony Faces Heat From Game Publishers to Cut PS3 Price Sony Corp. is under pressure from video-game publishers to cut the price of the PlayStation 3 console or risk seeing more development funds shift to Nintendo Co.’s Wii. Sony, which has resisted calls for lower prices, is likely to shave $50 to $100 off the PS3 this month or next, said Mike Hickey, an analyst with Janco Partners Inc. in Greenwood Village, Colorado. Starting at $399.99, the PS3 is $200 more than the lowest-priced Xbox 360 from Microsoft Corp. and $150 more than the market-leading Wii. Three years into the latest generation of game consoles, Sony is stuck in third place, data from the manufacturers show. The Tokyo-based company, once the dominant player, has half the worldwide users of Wii, even though the PS3 has earned praise for its processing power, graphics and Blu-ray movie player. U.S. sales of the PS3 have declined for three straight months. “If they can’t meaningfully increase their install base, then you will likely see a capital reallocation,” Hickey said. In 2008, Activision Blizzard Inc., the world’s largest game company, generated 32 percent of its console revenue from Wii titles. That compared with 19 percent for PS3, according to Activision. Electronic Arts Inc. is releasing some titles solely for Wii as part of a push to stem two years of losses, and showcased games for the Nintendo player at a company event last week. “You can’t ignore the guy who has half the market,” said Peter Moore, head of sports games at Redwood City, California- based Electronic Arts, maker of the “Madden NFL” series. ‘A Ways to Go’ “Sony obviously still has a ways to go with their pricing,” Moore, a former executive in Microsoft’s Xbox division, said in an interview. Electronic Arts is committed to the PS3 and expects a cut eventually, he said. PS3 games increased to 27 percent of the company’s console sales last quarter, bolstered by a popular soccer title. Sony has no immediate plan to reduce prices, said Peter Dille, senior vice president of marketing for Sony Computer Entertainment America in Foster City, California. “Everybody in the development community would love for the PS3 to be free, so they could just sell razor blades,” Dille said in an interview. Sony is concerned with profitability, as well as the installed base, he said. Sony, the world’s second-largest consumer-electronics maker, is in the middle of a corporate overhaul, cutting 16,000 jobs and closing factories. Chief Executive Officer Howard Stringer took over the main electronics business last month and named Kazuo Hirai, who leads the game unit, to head a new division combining Vaio computers, the Walkman and the PlayStation. Exclusive Games Sony is benefiting from exclusive titles for PS3, including the recently released “Killzone 2,” and non-gaming deals like the one announced March 10 to deliver movies and television shows for NBC Universal over the PlayStation 3, Dille said. Earlier this month, PS3 weekly sales in Japan topped Wii and Xbox ahead of the release of Capcom Co.’s latest “Resident Evil” installment, the Web sites GameSpot and IGN Entertainment reported, citing researcher Media Create. Not everyone predicts a big shift in spending, because PS3 and Xbox 360 share many titles and costs. Game companies who fail to commit enough money to PS3 risk losing business, said Mark Rein, vice president of Epic Games Inc., the Cary, North Carolina-based maker of “Gears of War.” “You make very good money on PlayStation 3 if you develop a good game,” Rein said in an interview. “You can very easily take that game to Xbox 360 or PC.” Seventh Generation Sony climbed 1.1 percent to close at 1,913 yen on the Tokyo Stock Exchange. It has lost 54 percent in the past year. The seventh generation of game systems began hitting stores in November 2005 with Microsoft’s Xbox 360. Sony and Kyoto-based Nintendo followed a year later. At the end of December, Sony had sold 21 million PS3s worldwide, compared with Nintendo’s almost 45 million Wii players and Microsoft’s 28 million-plus Xbox 360s, according to the companies. PS3 sales in the next 12 months are likely to total 14 million, compared with 28 million Wiis and 9.7 million Xbox 360s, according to the Daiwa Institute of Research, a Tokyo-based researcher and consultant. Price cuts have an immediate impact. Sony reduced the PS3 price from $499.99 in October 2007 and sales more than doubled in the next month. In September, Redmond, Washington-based Microsoft released its lowest-priced Xbox 360, at $199.99. The company almost doubled Sony’s U.S. shipments from October to January after trailing PS3 in the prior three months, NPD data show. Two Directions “Anytime a console manufacturer reduces the price, software publishers benefit,” Yves Guillemot, chief executive officer of Ubisoft Entertainment SA, Europe’s largest video-game maker, said in an e-mail. Game makers now focus development in two directions: one for the top-selling Wii and the other for Xbox 360, PS3 and personal computers. Titles for Microsoft and Sony are typically more expensive to produce. Sony posts a loss on each console it makes at the current price, according to researcher iSuppli Corp. “The publishers need the PS3 install base to grow in order for most of these games to be profitable,” said Evan Wilson, an analyst at Pacific Crest Securities in Portland, Oregon. “It’s an easy equation for them, but it’s very different from the one that Sony has to take on.” Share this post Link to post Share on other sites
Posted March 16, 2009 Yay. More price cutting speculation.... What fun. Share this post Link to post Share on other sites
Posted March 16, 2009 Well as there was that article the other month, gradually the resources needed to produce the PS3 cost less, so they can reduce the retail price. Share this post Link to post Share on other sites
Posted March 16, 2009 I don't think here in the UK we will see any price cut because of the falling pound..I can't imagine their production costs have reduced enough to offset weak currencies compared to the yen. Share this post Link to post Share on other sites
Posted March 17, 2009 Yeah, definately not for a while at least. Perhaps towards end of the year if the financial situation improves. I would say they are possibly more tempted to up prices rather than lower them given the Yen! Software publishers just want the short term boost since they are hurting too but it owuld be at Sony's expense. Wii software funding has nothing to do with PS3 either as they are seperate markets software wise. In other news Ninja Gaiden 2 is coming to PS3 in the latest Famitsu. Share this post Link to post Share on other sites
Posted March 17, 2009 Managed to get them up here they are: So just finished reading the article... Being able to ride Cyclops' now ftw <3 Also (Although pretty obvious) this game finish's of the story from the previous ones. I want the game now Might fire up some GoW on the PS2 just to get my fix Share this post Link to post Share on other sites
Posted March 17, 2009 Well as there was that article the other month, gradually the resources needed to produce the PS3 cost less, so they can reduce the retail price. Matt Is the R2 save thing working? I read for Burnout it works in some cases. Should have my 4th platinum soon. Crazy Taxi on my rental list. Added Madworld as well. Share this post Link to post Share on other sites
Posted March 17, 2009 The save thing wasn't for Resistance, it was for Wipeout that I wanted the gold on. Resistance platinum should be relatively easy now but I don't care about it that much, it's the elite campaign legend trophy i want. If I got that I'd be happy if I didn't get any other trophies tbh. Share this post Link to post Share on other sites
Posted March 17, 2009 The save thing wasn't for Resistance, it was for Wipeout that I wanted the gold on. Resistance platinum should be relatively easy now but I don't care about it that much, it's the elite campaign legend trophy i want. If I got that I'd be happy if I didn't get any other trophies tbh. Good luck. R2 elite is hard. No idea about wipeout! Ask around the PS forums? Test it out on another profile where you had no save and then do something that requires an easy trophy to see if it works. Should have my Killzone 2 platinum tonight. Share this post Link to post Share on other sites
Posted March 17, 2009 Again, I meant the elite campaign legend for Wipeout, I really don't care about the Resistance platinum that much. To me, it's about the appeal of the trophy rather than the difficulty. Tbh the elite campaign trophy on Wipeout is deserved of a platinum it is so hard. With Resistance pretty much anyone can do it. Share this post Link to post Share on other sites
Posted March 17, 2009 Again, I meant the elite campaign legend for Wipeout, I really don't care about the Resistance platinum that much. To me, it's about the appeal of the trophy rather than the difficulty. Tbh the elite campaign trophy on Wipeout is deserved of a platinum it is so hard.With Resistance pretty much anyone can do it. Well i dont know about the R2 trophy difficulty but i know one trophy is 10,000 kills online. Which would take forever and ever. Wipeout is bloody hard trophy wise. I think the maount of platinum is very low. Like afew hundred. Look at the tables for some the tracks not many people are getting golds or doing zone 75... Share this post Link to post Share on other sites
Posted March 17, 2009 Imagine how awesome it would be if I got it though... Share this post Link to post Share on other sites
Posted March 17, 2009 Imagine how awesome it would be if I got it though... Well i tried but couldnt handle it. Share this post Link to post Share on other sites
Posted March 17, 2009 I'm not sure if you know how annoying it is though, ploughing through with elite golds up to the last section (with one gold in that section) and then having my data corrupt. I got nothing for doing that, and I can't load data from the Internet because it doesn't allow you, and even if I could load it I'm not sure the PS3 would 'remember' that I had completed it up to that point - if there was some way of achieving it other than completing it all again I would do it, but the fact is it would take to long and frustrate me a heck of a lot. Share this post Link to post Share on other sites
Posted March 17, 2009 (edited) I'm not sure if you know how annoying it is though, ploughing through with elite golds up to the last section (with one gold in that section) and then having my data corrupt. I got nothing for doing that, and I can't load data from the Internet because it doesn't allow you, and even if I could load it I'm not sure the PS3 would 'remember' that I had completed it up to that point - if there was some way of achieving it other than completing it all again I would do it, but the fact is it would take to long and frustrate me a heck of a lot. Give up. Only afew people will ever get the Wipeout platinum, not worth the effort. Go for the KZ2 one. or R2. They are practical. btw KZ2 new patch is ready soon: http://twitter.com/KillzoneDotCom?page=1 So far aim snap and connection issues are confirmed to be addresed. [/img] Edited March 17, 2009 by Choze Share this post Link to post Share on other sites
Posted March 17, 2009 I want a new PSN game for some reason. Don't know what game but just a cool title really. Considering Flower but I'm not intent on spending 7 quid on something that doesn't last long. I know you guys will try to convince me otherwise. But yeah, any suggestions? Already have Wipeout, Snakeball and Stardust, which may give you an indication of what I'm looking for. Share this post Link to post Share on other sites
Posted March 18, 2009 (edited) I want a new PSN game for some reason. Don't know what game but just a cool title really. Considering Flower but I'm not intent on spending 7 quid on something that doesn't last long. I know you guys will try to convince me otherwise.But yeah, any suggestions? Already have Wipeout, Snakeball and Stardust, which may give you an indication of what I'm looking for. £7? Lumines will last long. But let me get back to you. I am sleepy and cant think of the top of my head. I also got my 4th platinum! Killzone 2. Feels great. Edited March 18, 2009 by Choze Share this post Link to post Share on other sites
Posted March 18, 2009 I want a new PSN game for some reason. Don't know what game but just a cool title really. Considering Flower but I'm not intent on spending 7 quid on something that doesn't last long. I know you guys will try to convince me otherwise.But yeah, any suggestions? Already have Wipeout, Snakeball and Stardust, which may give you an indication of what I'm looking for. flower is utterly increadable. easy woth the £7. it may be short but you'l play it over and over. Share this post Link to post Share on other sites
Posted March 18, 2009 I want a new PSN game for some reason. Don't know what game but just a cool title really. Considering Flower but I'm not intent on spending 7 quid on something that doesn't last long. I know you guys will try to convince me otherwise.But yeah, any suggestions? Already have Wipeout, Snakeball and Stardust, which may give you an indication of what I'm looking for. Quest for Booty. Share this post Link to post Share on other sites
Posted March 18, 2009 (edited) Sev, ISA and Helghast costumes with 32 piece sticker pack. Out tommorow. Also are they teasing new backgrounds and themes? LBP Watchmen trailer: New screens and interview! http://ps3.ign.com/articles/950/950692p1.html More in the Uncharted thread. Nice nice! Its going to be hard to top Killzone 2 but this is a good start! Play the first game if you have not! It also has added trophies. Edited March 18, 2009 by Choze Share this post Link to post Share on other sites
Posted March 18, 2009 I don't think that looks as pretty as the jungles Share this post Link to post Share on other sites
Posted March 19, 2009 I don't think that looks as pretty as the jungles Yeah the mountains are much harsh. Drake looks cold too. Though Jungles will be back too. Share this post Link to post Share on other sites
Posted March 19, 2009 I want a new PSN game for some reason. Don't know what game but just a cool title really. Considering Flower but I'm not intent on spending 7 quid on something that doesn't last long. I know you guys will try to convince me otherwise.But yeah, any suggestions? Already have Wipeout, Snakeball and Stardust, which may give you an indication of what I'm looking for. Burnout Paradise - Best game on PSN. Share this post Link to post Share on other sites
Posted March 19, 2009 I also got my 4th platinum! Killzone 2. Feels great. I haven't got my first yet. Hopefully on Resi 5. Share this post Link to post Share on other sites
Posted March 19, 2009 Anyone notice the strange symbols around Home... There are a couple ideas going around. On including it being related to a third Ico game. There is a lot of strange stuff going on with this Xi thing. I love viral marketing. Share this post Link to post Share on other sites
