SONY rules out PS3 price cut!!

[FoolKiller]

I am so praying this is true. And what a difference a few weeks makes. When I initially put my article up, Sony's US CEO, Howard Stringer claimed that they were claiming they lose heaps of money on EVERY CONSOLE they made.

Then to see in G.T.Ace's article, not even 4 weeks later saying that they are days away from announcing a price cut, that manufacturing costs are down 70% and are therefore making $400 PER CONSOLE tells me one of two things:

1. Howard Stringer is a LIAR!! Yeah I said it, he's a LIAR!!! I lose money....BS!!
2. They could MORE than afford a HUGE price cut to make it more competitive to the X360/Wii.

Hopefully on the 18th, we can chalk up a victory for the cash-strapped PS3 lovers worldwide!!

COME ON SONY, DROP THE PRICE ALREADY!! Give the people what they want!! 👍

Because you seem to have forgotten this I will quote myself.

After reading through some other articles talking about Stringer's statements it seems like he actually said if they did a price drop now they would be losing money, not that they still are.

http://www.engadget.com/2009/07/08/sonys-stringer-dismisses-ps3-price-cutting-threats-by-noisy-act/

It is hard to tell by the way they do it what he said, but all other reports I have seen have added that (would) or [would] in there, which may mean that he later clarified his own statement.

The other thing you aren't taking into account is when did the manufacturing costs drop to this recently anounced level? If they recently were able to reduce prices on certain parts, like say having gotten the 45nm chips in the last month, then Stringer wouldn't have been lying.

Or it could be that Howard Stringer was lying, but that is because announcing a price cut months in advance can do more harm than good. You don't want to kill your sales in the near future because everyone is waiting for the price drop. If they did that they would need even more sales at the lower price to make up for the loss of business.

 

[mafia_boy]

I would say with about 98% certainty that Stringer was lying. Maybe as you said FK, it was done to stop sales being killed incase people were waiting for the price drop. But it still calls into question the integrity of a person, whether what he did was for business reasons or not. Let's just say for me personally, I won't believe anything that SCEA says anytime soon if their boss lies through his teeth like I believe he has.

And you're right, it could've been 2 days ago.....but we aren't that naive to think that would be the truth, that Sony would've only just had this incredible manufacturing cost cut. I'm curious though as to WHEN the manufacturing cost drops occurred. Was it this month?? Last Month?? 2007?? These details will paint the picture a lot more clearly as to who is/was BS'ing and to tell the business world how long had Sony been making these profits. Were they keeping quiet so they could recoup most of the initial losses from the PS3's early lifespan?? Only Oneda-san would know this.

 

[FoolKiller]

I would say with about 98% certainty that Stringer was lying. Maybe as you said FK, it was done to stop sales being killed incase people were waiting for the price drop. But it still calls into question the integrity of a person, whether what he did was for business reasons or not. Let's just say for me personally, I won't believe anything that SCEA says anytime soon if their boss lies through his teeth like I believe he has.

And you're right, it could've been 2 days ago.....but we aren't that naive to think that would be the truth, that Sony would've only just had this incredible manufacturing cost cut. I'm curious though as to WHEN the manufacturing cost drops occurred. Was it this month?? Last Month?? 2007?? These details will paint the picture a lot more clearly as to who is/was BS'ing and to tell the business world how long had Sony been making these profits. Were they keeping quiet so they could recoup most of the initial losses from the PS3's early lifespan?? Only Oneda-san would know this.

The problem is that in the business world these decisions are made behind the scenes and even the majority of their workforce don't have all the details. We will never know why anyone said what they did when, or which parts were truth, half truths, or blatantly false.

It could be as simple as Stringer didn't have the newest figures yet as the quarter was only about three quarters through at that point. Or it could be that since his comment wasn't directed at us, it was directed at Bobby Kotick, he was just throwing out a snide comment to fire back.


The other thing to keep in mind is that the news of reduced manufacturing coincided with quarterly reporting. Had Stringer mentioned it earlier their stocks would have gained a lot of value at a time when media wasn't watching it closely and then dropped after their quarterly report showed they were still losing money in general, while the media was watching it closely. Then of course, shareholders hate the idea of major business news being discussed outside of reporting periods. Shareholders want to (and should be) the first to find out. Stringer could have had a very unhappy board meeting had he said it in that forum.

So much can go into why business executives say things when they do that it is near impossible to guess what exactly was behind it.


Honestly, it is frustrating to feel you were lied to, but sometimes it is due to a smart overall business decision.

 

[Sureboss]

http://www.mcvuk.com/news/35396/New-PS3-stock-halted-in-Japan

It's on its way folks.

 

[FLASH48]

Just wondering how a slim PS3, would be cheaper to manufacture than the phat one! Other than leaving components out, that are in most phat models! If the slim has the same or better components, as my 60gig i will be buying a slim!!!👍

 

[Tomaz]

Slim won't have better components. Only more chances for overheating.

 

[FoolKiller]

Just wondering how a slim PS3, would be cheaper to manufacture than the phat one! Other than leaving components out, that are in most phat models! If the slim has the same or better components, as my 60gig i will be buying a slim!!!👍

Manufacturing costs on electronics drop rapidly. As posted earlier, one Sony exec says the manufacturing costs are down 70% from when the PS3 launched.

Add in that they will likely be using the new 45nm chip, which is smaller and cheaper to make, but has equal performance while requiring less energy on the consumer end and that is a savings as well.

Plus, a smaller design means less materials, such as plastic.

Judging by the pictures (assuming they are real for the sake of conversation) the slim appars to be missing the memory card readers that your 60GB should have.