Rhys Blakely
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Sony is to phase out the 60-gigabyte model of its struggling PlayStation 3 console, a move announced only days after it cut the price of the machine from $599 to $499 (£244) in the United States.
The decision to scrap the 60-gigabyte model led angry gamers to dismiss the price cut as a “clearance sale”, designed to clear unwanted inventory and not to improve value.
Sony said that it had a supply of “several months” in stock. It is estimated to be losing about $200 on each PS3 sold.
The move will mean that only the newly revealed 80-gigabyte, which retails for $599, will be on sale in the US, raising questions over Sony’s seemingly volatile pricing strategy.
Joystik.com, the gaming blog, said: "Anger, frustration, confusion, denial, shock ... these are all words that can be used to describe the emotional state felt by the gamer community after Sony went from officially announcing a price drop ... to essentially making it all a moot point."
The Japanese technology giant and its chief executive, Sir Howard Stringer, are under intense pressure to close the huge sales gap with Nintendo’s much cheaper Wii.
Sony has sold 1.4 million PS3’s in the US since its launch last November, compared with 2.8 million for the Wii.
Last week's price cut had placed the 60-gigabyte PS3 firmly in the same bracket as Microsoft’s Xbox 360 — the third player in the console sector — and led to expectations of a price war.
However, only days before its announcement, Ryoji Chubachi, the Sony president, had 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 Nintendo’s Wii, which retails for less than half that.
Meanwhile, Sony has since risked the ire of European gamers by saying that it has no plans to cut the 60-gigabyte PS3 in territories including the UK, despite the US discount.
Customers across Europe will instead be offered a "starter pack" that includes two free games and two controllers, which Sony says is worth £115.
Although selling hardware at a loss to stoke demand for higher-margin game software has been a common tactic in the gaming sector, there have been signs that the industry’s economics are changing.
Nintendo’s market leading Wii, which is outselling the PS3 by a margin of at least 2-1, is already profitable, the company told The Times last week.
Last week, on the eve of E3, the gaming industry’s largest convention, Sony said that it would launch the 80-gigabyte PS3, which will come with MotorStorm, a racing game, in August.
It will compete with Microsoft's Xbox Elite, which has a 120-gigabyte hard drive and went on sale in the US this year for $480.
Despite its larger hard drive, the Microsoft machine does not have the PS3's next-generation Blu-ray DVD player.
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HA Microsoft had first mover advantage all right by about 6-9 months. Little did it know that a third of these people would be coming back over time to get their xbox fixed. So what use is FMA when the machines are so shoddily built. PS3? unproven technology of no real value. They should have just made a mini pc and left it at that. I mean its gosting them twice as much to make these things as they sell for.. just go with an £800 pc subsidized to £400 and youd have a real winner on your hands
ronue boulanger, london , UK
Thanks to Nintendo, the Wii makes me feel younger. It is like a time machine which brings me back to the old school days. While I was hitting a backhand return shot with the motion sensor remote control, I, at one point, thought I was playing my Game & Watches but in a different way.
Thanks to Microsoft, the Xbox360 has kept many busy recently, but sadly, not so much with their killer games. Given the highest failure rate among all second-generation game consoles, gamers have been flocking in and out of repair centres to get their Xbox360s fixed.
Thanks to Sony, the PS3 makes me realize what rank first in this gaming world: both quality and reliability.
Harry, Japan,
The PS3 is a marketing blunder by Sony. They have loaded it with technology that I, and by the sounds of it many others, don't want.
The high price of the PS3 just maked me turn to the WII and the XBOX360. And finally, it all comes down to fun. I love the WII. Cheap, simple and great fun. The Xbox 360 has also delivered in the entertainment department. The PS3? I'll be sticking to my PS2 for a long time to come.
Mike, Epworth, UK
Ryan from LA, you talk rubbish. the PS3 is not capable of better graphics than an xbox 360 or a PC, the PC beats it by miles. Where is your proof of great graphics on the PS3, i havent seen anything on it better than games on the 360.
the graphics chip is a last generation nvidia on the PC and the cell is a very simple multi core processor, not a match for any of the newer intel chips. also, the 360 and PC are much easier to program for meaning time can be better spent on making good games. i wonder why there arent any on the PS3.
cant compare to the wii as it was designed to be cheap and cheerful which is what it is, and it makes money!
Paul, London,
There is one major thing that alot are forgettng in this:
Micosoft has been selling the 360 at a loss since launch and will probably cut the price around christmas, just to saturate the market.
I don't plan to get a 360 anytime soon but this is very pertinent when one looks at Sony's statement of stating they cut the price to what they could afford to sell them at. To be honest, they could have just as easily recalled all the US models, removed the emotion engine parts, and made PS2s out of them and then sent them back at a cut price.
Another major issue here is that they are no longer utilizing toshiba for the emotion engine parts, hence cutting alot of overhead on thier part, so the inclusion of only an 80G HDD, emulation in the place of an emotion engine, and then keeping it at the same price as launch, only phasing out the 60G models with this paltry $100 price cut, is actually an insult, not only to those that purchased and actually kept thier systems at launch (not the eBay con artist....) but also potential customers.
The best thing they could do is just provide a 20G HDD, sell the non-emotion engined emulation equipped model at maybe $400, and then those that wish to upgrade HDD can always order one from newegg, tiger direct, or even those sites that have even specialized in 120G to 160G HDDs with the PS3 OS already installed.
Of course that's just my opinion......
Harleigh Quinn, Alexandria, VA
PS3 lacks good games, but crucially it lacks good exclusives. And that's unlikely to change in a year's time or even in five years time as developers are more and more reluctant to tie their games down to one console. It used to be exclusives sold consoles to the majority of gamers out there who buy consoles to PLAY GAMES rather than count the number of pixels their machines can render per second. Now it is more likely to be a case of who can get their machines sold first, and microsoft beat sony off the starting block here. Why would you pay £100 extra just to play the same game on a different console where the visuals are only marginally improved?
ZL, London,
Is anyone here actually foolish enought not to think, that once the shelves are cleared of $499 60GB units, there won't be a $499 80GB unit (without any games) to replace it.
I can't believe a previously credible source like the Times, is even bothering to report this nonsense.
What Sony are doing, is buisness, pure and simple, and the same as most other companies do every day. However, some people seem to just have it in for everything that Sony does..
Mark, Weymouth, UK
With the Wii and the xbox both under £300 I'm not sure what Sony are thinking, but I won't be buying one until it drops below £300 despite being a huge fan of PS1 & PS2.
grymwynd, manchester, england
I personally have a Xbox 360, and not trying to be biased, but I love it. However, this story is centered around media giant SONY. When I first heard of the price cut, I said it to all my friends and family, and even though I have an extreme dislike of SONY's PS 3, I was actually thinking of buying one. I spent the rest of the day thinking of how to get the money ready for I needed a couple of months of work before I could buy it. Then comes the bad news that the 60gig will be stopped in production, and the 80gig model will take its place. ME MAD! ME VERY MAD :-(. So as always, I despise Sony, like Nintendo, LOVE Microsoft. Don't you just love my biased ways?
Sergiu, Abingdon, Maryland
Sony won't learn until they are making video games for the Nintendo Wii and the Microsoft Xbox 360
Stephen, Amesbury,
I don't think they are phasing out the price cut, they are phasing out the 60gb machine. I'm pretty sure the 80gb machine will drop to $499 once the 60gb's have all gone.
Peter, Jefferson,
if you really believe that your ignorant. Sony is flying by the seat of their collective pants. they are grasping at every branch on there fall to obscurity.
Wii shalla conquer all.
Jeff, Salt Lake City, USA/Utah
Hey Sony, drop the Blu-ray DVD player and the problem is solved. I want a gaming system, not an overrated DVD player.
Jake, Denver,
Blu-Ray is totally different than DVD. It can't be a "Blu-Ray DVD player"
Jason, Alexander,
who cares about blueray, we buy consoles to play games. Funny you mention that despite a larger drive the360 doesnt have blueray, i fail to see any correlation between hard drive size and inclusion of BR, maybe its a fanboy way of trying to dis the 360....
willie, toronto,
Though a lot have been criticizing the Sony PS3, i guess the PS3 will stand up to be the winner in this console war. They have the hardware advantage compare to xbox 360 especially with the xbox failure issue AKA "three red lights of death" which Microsoft admitted. Microsoft's xbox is just a step ahead with PS3 with the game titles since it was released a year earlier. On the long term basis as price of technology continously depreciates, Sony's PS3 will be affordable in month's to come. Blue ray, Wi-Fi, rumblaxis, bluetooth are some of the technology within the console and a cutting edge Cell processor powerful than your desktop!
Emerson Lunday, Navotas, Metro Manila, Philippines
Ohh sure this makes alot of sense instead of dropping the cost of the over priced game console which offers gamers very little content. Would like to drop the quality of the console in order to sell it. LMAO
doc, oceanside, ca
Joystiq.com, not Joystik.com
JS Beckerist, Ithaca, NY
Stop all the over-dramatic bellyaching. Buying the 60gigabyte version at $100 less is still a good deal, regardless of a later 80gig release at the original price. European customers shouldn't be whining either -- 2 free games and 2 controllers, c'mon people... the value is still there!
Keep i mind that the PS3 is also a Blu-ray player and capable of far better graphic performance than any of its competitors. The only thing holding back sales of the console is lack of games, which we'll see more of soon. So, in a year when all your friends have their cheap Wii games and you're wowing them with your 1080p near-life game experience, you'll be glad you didn't climb the Wii-tree.
Ryan, Los Angeles, CA, USA
Sony, I'm trying to kepp supporting you here... but your random, sometimes idiotic actions are killing me X_X
Cory P., Tucson, AZ