SCEA CEO Says PS3 ""Difficult to Cost Reduce"

Ace Pace · Post by **Ace Pace** » 2007-01-23 11:25am

Along with the Neo Geo and 3DO, the PlayStation 3 is one of the most expensive consoles ever released. While price drops are inevitable during any console’s lifespan, those holding off until a cheaper PS3 rolls around may find themselves waiting longer than expected. As noted by Joystiq, Game Informer magazine interviewed SCEA’s President and CEO Jack Tretton and one of the topics discussed was PS3’s cost.

The magazine asked if the PS3 would see a price drop schedule similar to PS2, which saw a reduction of a third from $299 to $199 just over a year and a half after launch. Tretton replied to the question with a simple “No,” thus leaving the current price points where they are at for at least the rest of 2007.

Tretton reasoned that the enormous R&D costs of the PS3 make it “a lot more difficult to cost reduce” than the PS2. “There's a heck of a lot more under the hood and it costs us more money to make it,” said Tretton. He may be referring to the fact that Sony is selling every one of its new consoles at a loss, making it nearly impossible to move on the price until manufacturing costs are reduced. Analysts currently estimate that Sony is taking a $241 hit on 60GB versions, and a $307 loss on 20GB PS3s.

The Sony executive remained confident in the machine’s price point, saying that the PS3 still represents an excellent value. “I think the consumers that get their hands on a PlayStation 3 clearly see the value and not only want to buy one for $599, in some instances they're willing to pay ridiculous prices to buy one on eBay,” Tretton said.

While Tretton’s words apply specifically to the North American market, the pricing situation is a little different in other territories. The Japanese market received a price-reduced to ¥49,980 ($411) 20GB PS3 before the machine even launched in response to public outcry.

European gamers, who have had to wait for PS3 whether they mind it or not, will be seeing the new console in March at €599 ($777) for the 60GB, and €499 ($648) for the 20GB models – considerably higher than what North Americans and Japanese pay. The UK may get the worst of it all, as the 60GB PS3 will go for £425 ($842) for the 20GB PS3 it will be £350 ($694).

Although Europe may always lag behind the rest of the world for console releases, it may be the first territory to receive a drop in price. With the PS3 selling in Europe at prices much closer to the machine’s manufacturing costs; Sony could have a lot more room to work with. If the PS3 gets a lukewarm – or even cold – reception at launch, it may not be surprising to see adjustments to price or, more likely, the introduction of value-added software bundles.

Going back to Japan, demand for the machine appears to be so low in certain parts of the country that retailers have taken it upon themselves to lower the price. Kotaku reports that sales of the console are so stagnant in Japan that select retailers are taking 20 percent off the price of the 20GB console in hopes to attract buyers. At the sale price of ¥39,980 ($329), Japan has PlayStation 3 at prices that make the rest of the world jealous.

Mobius · Post by **Mobius** » 2007-01-23 12:32pm

Sony didn't shot himself in the foot. they seemed to have thrown themselves in a grinder...

Luke Starkiller · Post by **Luke Starkiller** » 2007-01-23 01:43pm

Ace Pace wrote:Kotaku reports that sales of the console are so stagnant in Japan that select retailers are taking 20 percent off the price of the 20GB console in hopes to attract buyers. At the sale price of ¥39,980 ($329), Japan has PlayStation 3 at prices that make the rest of the world jealous.

That is a massive difference to North American prices; I assume there is some kind of region coding built in to stop people from just buying one in Japan and shipping it home?

Grandtheftcow · Post by **Grandtheftcow** » 2007-01-23 01:49pm

It's a good opportunity for Microsoft. Hell they'll have pretty much all the same games as PS3 anyway.

Uraniun235 · Post by **Uraniun235** » 2007-01-23 02:05pm

Grandtheftcow wrote:It's a good opportunity for Microsoft. Hell they'll have pretty much all the same games as PS3 anyway.

Does that include the latest thrilling epic adventure in which a plucky band of adventurers must save the world by preventing the great evil darkness from destroying the soul of Princess Gothloli?

because i hear there's a pretty big market for that over in japan

Spanky The Dolphin · Post by **Spanky The Dolphin** » 2007-01-23 02:08pm

Luke Starkiller wrote:
Ace Pace wrote:Kotaku reports that sales of the console are so stagnant in Japan that select retailers are taking 20 percent off the price of the 20GB console in hopes to attract buyers. At the sale price of ¥39,980 ($329), Japan has PlayStation 3 at prices that make the rest of the world jealous.
That is a massive difference to North American prices; I assume there is some kind of region coding built in to stop people from just buying one in Japan and shipping it home?

I seem to recall that the PS3 is regionless (except for DVDs and backwards compatible games). Or was that the 360?

Mobius · Post by **Mobius** » 2007-01-23 02:56pm

I seem to recall that the PS3 is regionless (except for DVDs and backwards compatible games). Or was that the 360?

well it's up to the games editor to decide: so it's really a big clusterfuck on 360 (some NTSC/J games are regionless but their pal counterpart are).
But so far there is no region coding on PS3 game i think.

MKSheppard · Post by **MKSheppard** » 2007-01-23 04:45pm

Uraniun235 wrote:Does that include the latest thrilling epic adventure in which a plucky band of adventurers must save the world by preventing the great evil darkness from destroying the soul of Princess Gothloli?

because i hear there's a pretty big market for that over in japan

Surely thou Jest!

I never got the point of console RPGs really, why do they all have the same god damn story each one of them, and why do idiots keep buying them?

Tanasinn · Post by **Tanasinn** » 2007-01-23 04:53pm

Uraniun235 wrote:
Grandtheftcow wrote:It's a good opportunity for Microsoft. Hell they'll have pretty much all the same games as PS3 anyway.
Does that include the latest thrilling epic adventure in which a plucky band of adventurers must save the world by preventing the great evil darkness from destroying the soul of Princess Gothloli?

because i hear there's a pretty big market for that over in japan

Actually, 360's gotten at least one big RPG that Japan was excited to hear they were getting; I can't recall the name off the top of my head, since I'm more of a "Morrowind" guy when it comes to RPGs, rather than the "Dragon Warrior CXIV" type.

Praxis · Post by **Praxis** » 2007-01-23 05:34pm

I'm so happy I'm not a Sony stockholder at this point.

Huge amounts of R&D spending, plus money lost with each sold just increases the huge losses on the system; and even with that they still can't get people to buy them and they're sitting on the shelves!

Mobius · Post by **Mobius** » 2007-01-23 05:39pm

Tanasinn wrote:
Uraniun235 wrote:
Grandtheftcow wrote:It's a good opportunity for Microsoft. Hell they'll have pretty much all the same games as PS3 anyway.
Does that include the latest thrilling epic adventure in which a plucky band of adventurers must save the world by preventing the great evil darkness from destroying the soul of Princess Gothloli?

because i hear there's a pretty big market for that over in japan
Actually, 360's gotten at least one big RPG that Japan was excited to hear they were getting; I can't recall the name off the top of my head, since I'm more of a "Morrowind" guy when it comes to RPGs, rather than the "Dragon Warrior CXIV" type.

The name's Blue Dragon designed by the dude of Dragon Ball
but there is also Eternal Sonata and Lost Odyssey as J-RPG coming on 360.
But i think that one game that has great potential for the 360 in Japan is The Idolmaster with his disturbing amount of lolicon... (if that game make it outside i think they'll have to change some stuffs)
and surprinsingly Gears of Wars is selling enough to be out of stock in Japan...

Spanky The Dolphin · Post by **Spanky The Dolphin** » 2007-01-23 05:48pm

MKSheppard wrote:
Uraniun235 wrote:Does that include the latest thrilling epic adventure in which a plucky band of adventurers must save the world by preventing the great evil darkness from destroying the soul of Princess Gothloli?

because i hear there's a pretty big market for that over in japan

Surely thou Jest!

I never got the point of console RPGs really, why do they all have the same god damn story each one of them, and why do idiots keep buying them?

bait bait lol

Personally I'm enjoying Final Fantasy IV Advance tremendously, and am really looking forward to Final Fantasy VI Advance when it gets released in a couple weeks. Of course those games were before the post FFVII releases when the stories got stale.

Don't know about Dragon Quest, though.

Heh, Blue Dragon...

Praxis · Post by **Praxis** » 2007-01-23 06:22pm

To be honest I've felt the same way. Almost all console RPGs are the same.

Zelda I let get away with it because the titles are so rare and massively differentiated (compare OoT to Wind Waker, horseback riding vs sailing, time travel vs wind control, realistic vs cel-shaded, etc). Final Fantasy (all 13 of them, plus the spinoffs...almost as bad as MegaMan games) and similar RPGs I just haven't been able to get in to...all the plots seem like they're taken from the same pool of cliches with different names and backgrounds attached.

Xisiqomelir · Post by **Xisiqomelir** » 2007-01-23 06:32pm

People, have you not been looking at Media Create recently or something? Japan has no love for RPGs at the moment. It's all More Common Knowledge Training, Animal Crossing, Wii Sports and NSMB.

Praxis · Post by **Praxis** » 2007-01-23 06:41pm

And Dragon Quest and Pokemon, two RPGs.

Uraniun235 · Post by **Uraniun235** » 2007-01-23 07:33pm

Xisiqomelir wrote:People, have you not been looking at Media Create recently or something? Japan has no love for RPGs at the moment. It's all More Common Knowledge Training, Animal Crossing, Wii Sports and NSMB.

What is "More Common Knowledge Training" and "NSMB"?

And that honestly sounds like a rather narrow selection.

Mobius · Post by **Mobius** » 2007-01-23 07:39pm

Uraniun235 wrote:
Xisiqomelir wrote:People, have you not been looking at Media Create recently or something? Japan has no love for RPGs at the moment. It's all More Common Knowledge Training, Animal Crossing, Wii Sports and NSMB.
What is "More Common Knowledge Training" and "NSMB"?

And that honestly sounds like a rather narrow selection.

NSMB: New Super MArio Bros
More Common Knowledge training is what the title suggest: quizz game to train your knowledge.

last media create top:
1. Wii Sports
2. Dragon Quest Monsters J
3. Wii Play
4. Common Knowledge Training for Adults
5. New Super Mario Bros.
6. More DS Brain Training
7. Animal Crossing Wild World
8. Metal Gear Solid : Portable Ops
9. Pokémon Diamond DS
10. Mario Kart DS

Xisiqomelir · Post by **Xisiqomelir** » 2007-01-23 07:40pm

NSMB:

Can't find you cover art for Common Knowledge training, but it's a lot like the other DS "training" titles. It quizzes you on etiquette, manners and customs etc.

Xisiqomelir · Post by **Xisiqomelir** » 2007-01-23 07:42pm

Praxis wrote:And Dragon Quest and Pokemon, two RPGs.

True, but those are both monster raising RPGs, not traditional JRPGs. My point was that Japan is DSL game land at the moment, not Legend of Disgaea XenoFantasy land.

Neko_Oni · Post by **Neko_Oni** » 2007-01-23 08:36pm

But i think that one game that has great potential for the 360 in Japan is The Idolmaster with his disturbing amount of lolicon... (if that game make it outside i think they'll have to change some stuffs)

That youtube video reminded me of the intro to Perfect Blue. The 360 already has one good JRPG (in my opinion) in Enchant Arm. Yeah it's cliched but the combat's fun.

Sharp-kun · Post by **Sharp-kun** » 2007-01-23 08:37pm

Spanky The Dolphin wrote: I seem to recall that the PS3 is regionless (except for DVDs and backwards compatible games). Or was that the 360?

The PS3 has no region coding for PS3 games (it does for DVD's and older games).

Its one of the major reasons I'll likely be getting one.

Praxis · Post by **Praxis** » 2007-01-23 08:48pm

Uraniun235 wrote: What is "More Common Knowledge Training" and "NSMB"?

Maybe if you played the former, you'd know what the latter is.

DPDarkPrimus · Post by **DPDarkPrimus** » 2007-01-23 09:10pm

Sharp-kun wrote:
Spanky The Dolphin wrote: I seem to recall that the PS3 is regionless (except for DVDs and backwards compatible games). Or was that the 360?
The PS3 has no region coding for PS3 games (it does for DVD's and older games).

Its one of the major reasons I'll likely be getting one.

What's the point of playing games from other regions if there aren't any out in any region worth playing?

Sharp-kun · Post by **Sharp-kun** » 2007-01-23 09:16pm

DPDarkPrimus wrote: What's the point of playing games from other regions if there aren't any out in any region worth playing?

When SRW comes to the PS3 (almost inevitable, given that all Nintendo home consoles since the SNES have failed with it and Xbox is insignificant in Japan) I'll be getting one. Add G Generation into that as well as series like Another Century's Episode.

Aside from that I'm rather interested in domestic releases of:

GTA4
Resident Evil 5
Metal Gear Solid 4: Guns of the Patriots
Makai Wars
Guilty Gear BB
Sonic the Hedgehog
Final Fantasy XIII
Ninja Gaiden: Sigma

SAMAS · Post by **SAMAS** » 2007-01-23 10:05pm

Xisiqomelir wrote:
Praxis wrote:And Dragon Quest and Pokemon, two RPGs.
True, but those are both monster raising RPGs, not traditional JRPGs. My point was that Japan is DSL game land at the moment, not Legend of Disgaea XenoFantasy land.

Hey!

Don't go lumping Disgaea in with Final Fantasy!

StarDestroyer.Net BBS

SCEA CEO Says PS3 ""Difficult to Cost Reduce"

SCEA CEO Says PS3 ""Difficult to Cost Reduce"

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