Rhys Blakely
Enter our Snapshots of Summer photography competition
Sony has ruled out cutting the price of the PlayStation 3, despite the console struggling badly against Nintendo’s rival Wii.
Ryoji Chubachi, the Sony president, said that there were "no immediate plans" for such a move, despite the PS3’s relatively high price — about £400 in the UK — being cited as one of its key disadvantages against the Wii, which retails for less than half that.
The latest industry figures suggest that the Wi is outselling the PS3 by two to one in the UK.
In Japan the ratio has been put as high as five to one.
Margins on the Sony console, the development of which ran late and well over budget, are a big problem for the electronics giant, and the machine is expected to be loss-making well into next year.
Selling consoles at a loss to stoke demand for higher-margin games software is a common tactic.
But pressures to keep the price of its next-generation Blu-ray DVD players buoyant may also be playing on Sony’s mind.
The incorporation of the initially problematic Blu-ray technology in the PS3 was one cause of the machine’s delay and lofted price.
Blu-ray has won greater backing in Hollywood than Toshiba’s rival HD DVD format partly because the PS3 was supposed to provide a wide base of players to further support demand for the format.
However, one top Hollywood executive told Times Online that while Blu-ray looks to be beating HD DVD in terms of sales, Sony’s reluctance to cut the price of players was beginning to worry studio executives.
“This looks like a replay of VHS versus DVD, right?" he said. "Sony lost that and needs to get this one right. By keeping player prices high, I’m not convinced they are.”
Although analysts suggest that Blu-ray has the early upper hand in terms of sales, neither rival format has achieved widespread adoption.
The latest industry figures suggest about 350,000 Blu-ray movies have been sold in Europe this year, a fraction of the overall market, despite sales asoaring 1,000 per cent after the launch of the PS3 in March.
Blu-ray leads HD DVD in Hollywood support, having won the exclusive backing of five studios: Sony, Walt Disney, Twentieth Century Fox, Lions Gate and MGM.
By contrast, only Universal has opted to back HD DVD exclusively.
Paramount and Warner Bros are making films available on both formats.
Across its business, Sony said that it expected to achieve its target of a 5 per cent operating margin this financial year.
Separately, Microsoft said last night that it would take a charge of more than $1 billion (£497 million) after admitting to selling faulty Xbox 360 games consoles.
The group is to expand its global Xbox 360 warranty to cover for the problem — identified by an error message of three flashing lights — to three years.
The confession will come as a blow to the US group, which is locked in a three-way console war with Nintendo and Sony.
Bill Gates, the Microsoft co-founder and chairman, regards the Xbox 360, which was launched in 2005, as the centrepiece of the group’s home entertainment strategy.
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
$250 is what huge numbers of people are willing to spend
$500 is not
I would have thought that this fundamental limiting factor would have been forefront in the planning at Sony when PS3 was on the drawing board - apparently not and more fool them
Mike Glasspool, Hereford, UK
i live in VA and i want to know if i can find a 360 elite for under 400$???!!
tyler, Woodbridge, VA
How many ps3s will go when GTAIV is released in october? A very,very large amount in the U.K for sure.
james, cardiff, United Kingdom
Microsoft uses the HD DVD not the Blu-Ray. Sony is the one backing the latter.
Ian, Frederick, MD USA
What price cut? Are you referring to the Sale of the soon to be discontinued 60GB version with full backwards compatibility? All PS3's will still be $600 after the current 60GB stock is sold out. I do agree that MS will price cut the 360 to compete with Nintendo, but not until after Halo 3 makes them loads of cash and the 60nm Xenon graphics chip is in full production.
Ray, San Jose,
PS3 will be the leading plataform.....it is just a matter of time
Happy Feet, LA, California
Okay, the Playstation 3 is actually completely useless, in one of my gaming magazines, it says that Sony Entertainment's Chairman retired and stuff, furthermore at his final speech he delivered messages to the public about the Playstation 4, 5 and 6!!!
The Playstation is cheap for it's price because a Blue-Ray drive costs about 600 dollars already, according to a friend who purchased one for his lap top.
The Wii is cheap because of the material Nintendo used to make it, if you notice, your Wii is extremely light perhaps, and looks like it could break easily, correct? Yeah, that's why it is cheap, but it's a genious idea nonetheless.
Anyway, the point is, the PS3 WILL get cheaper, but realize it is cheap for it's price already, you are really only paying for a Blu-Ray drive.
Anyway that's my long two cents, thanks for reading =)
Anthony Ayala (Novi), Arlington, Washington (US)
Sony will make (probably) make price cuts around September. They will release 3 models of the PS3, one with less memory the standard 60gb and an enhanced memory option.
Karen, London, UK
Having gone through two PS1s and two PS2s, I'm not prepared to spend out £400 on a machine that might not last more than a couple of years! By contrast, my Commodore 64 still works absolutely fine and that has been played far more over the years. Same goes for my NES, Megadrive etc. If they can't make reliable CD drives and such like then perhaps they should consider selling them as a seperate plug in unit!
If the price does come down then I would definitely consider it, but not till then...
Sam Nicholson, Basingstoke,
I would like to buy the ps3 but not until sony drop the price near future.I know all new technology is pricey at first but if your on a low wage like myself I would have save for very long time.The xbox sounds more tempting at a cheaper price and the games are cheaper to.
Ian stephens, cwmbran, gwent southwales
Sony is the the most greedy corporation in the world. They have a long history of shoving propriatory technologies down the throats o the consumers. Remember the Beta format, memory sticks, MiniDisc, UMD and on... I bought a XBOX 360 not because I thought PS3 was a bad product or XBOX is a better console. I lost faith in Sony and plain sick and tire of their non existing customer service.
UK fin, ny/ny, USA
Yes Bluray has a slight lead due to studio collusion but that is about to be cracked wide open .
The EURO union will force under it's anti-competative practice studios to produce both Bluray and HD-DVD formats to continue to sell it's media to the EURO market...
This will be a banner day for HD-DVD :)
Ron White, Kanata, Canada , ON
Yes Bluray has a slight lead due to studio collusion but that is about to be cracked wide open .
The EURO union will force under it's anti-competative practice on the studios to produce both Bluray and HD-DVD formats to continue to sell it's media to the EURO market...
This will be a banner day for HD-DVD :)
Ron White, Kanata, Canada , ON
âThis looks like a replay of VHS versus DVD, right? Sony lost that and needs to get this one right."
Hollywood executives once again proving they know absolutely nothing about technology, and to some extent even the entertainment industry. Sue your customers, confuse DVD and Betamax - it's all on the cards for the fatcat's these days...
Matthew, Surrey,
What? Sony just cut the price of it's latest Blu-Ray player by $100. That's a joke. And Andrew have you seen Sony's upcoming games? They have more exclusives than Microsoft does coming out. Like the only good Microsoft games coming out later this year are: Blue Dragon, Bioshock (Which is also coming out on the PC), Mass Effect, and Halo 3.
Sony has: Lair, Heavenly Sword, Warhawk, Ratchet and Clank Future: Tools of Destruction, Uncharted: Drake's Fortune, Killzone 2, and Metal Gear Solid 4: Guns of the Patriots.
Plus Home is going to be better than Xbox Live.
Jeff, Trueville, Alabama
Yes Bluray has a slight lead due to studio collusion but that is about to be cracked wide open .
The EURO union will force under it's anti-competative practice on the studios to produce both Bluray and HD-DVD formats to continue to sell it's media to the EURO market...
This will be a banner day for HD-DVD :)
Ron White, Kanata, Canada , ON
âThis looks like a replay of VHS versus DVD, right?"
Err.. which hollywood excutive said that??? You guys need a new editor...
Frank Warren, London,
"Blu-ray has won greater backing in Hollywood than Toshibaâs rival HD DVD format partly because the PS3 was supposed to provide a wide base of players to further support demand for the format." Guess this is why the EU is so interested in Blu. ;)
Seriously PS3 has blu around its neck like a stone. A price drop is very necessary to compete. 6-to-1 wii sales in Japan. I like the PS3 but will not buy it before enough decent games make it worth buying. Although after hearing about the spyware installed I may pass anyway.
"PS3 is watching you - Sony signs data-sharing deal"
"Nielsen will have access to data from the PlayStation 3 systems as well as the PlayStation Network. This data will then be used to measure your "behaviour patterns."
They just want to know who's watching what, who's playing what, and who's seeing what."
Toby , Toronto ,
Yes Bluray has a slight lead due to studio collusion but that is about to be cracked wide open .
The EURO union will force ( under it's anti-competative laws ) on the studios to produce both Bluray and HD-DVD formats to continue to sell it's media to the EURO market...
This will be a banner day for HD-DVD :)
Ron White, Kanata, Canada , ON
who cares who wins the battle they will soon both be peanuts just hold tight
Garry Webster, Noewich ,
âThis looks like a replay of VHS versus DVD, right?"
Err.. which hollywood excutive said that??? You guys need a new editor...
Frank Warren, London,
I believe that the big problem Sony faces versus the Nintendo, is that consumers of video game platforms want precisely that: a machine that plays games. Any other media options available on a gaming console should be secondary to the primary function of such technology.
Sony seem to have assumed that the PS3 will sell soley based on a combination of supposed multi media ability and name recognition. Where-as Nintendo has taken the view that the Wii is a games machine, and all focus should therefore be on the games released. Unless Sony acknowledges that consumers want to have fun for their money and begins to release innovative, high quality games, it will, (I believe) lose out.
Andrew Kitchener, Norwich, United Kingdom
VHS versus DVD? Surely the âtop Hollywood executiveâ meant
VHS versus Beetbetamax. Beetbetamax was Sonys alternative to VHS which resulted in battle between the two formats in the early 80's, with Sony ultimately losing. This is very similar to the current Blu-Ray versus HD-DVD battle that is happening now.
bob jones, Ipswich, UK