Another E3 Winding Down, Plus a Quick Clarification

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Well, we’re in the home stretch! A new format for E3 brought a new look and feel, a few challenges and most importantly a great opportunity to show off our wares for all PlayStation platforms. All the planning, preparations and hard work has paid off into what was a great E3 for SCEA. Congratulations to everyone involved in making that happen! And a thanks to all of you guys for your positive comments regarding the press conference and what we showed there. I know Jack was checking out all the comments on his post and really appreciated your feedback. I hope you’ve enjoyed seeing our games via the trailers on PlayStation Network. I just wanted to also let you know that yes, we hear you, and we are working to make those great games you saw into more interactive content and demos.

One quick thing before I head to the show for the last day. I just wanted to clarify something. I’ve seen a lot of posts this morning related to the 60GB SKU and the comments by SCEE President David Reeves. As we announced this week, SCEA’s product offering in North America consists of a 80GB PS3 available in August and a 60GB PS3 available now for $499. We will have ample supplies of both models to meet the needs of consumers for the foreseeable future.

Talk to you again soon, once we get back from Santa Monica.

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  • Someone really needs to either reign in or fire David Reeves. This is not the first time he’s put his foot in Sony’s mouth. None of this would be an issue if he hadn’t opened his pie hole.

    Also, I notice that the author of the blog post didn’t say that 60GB units were continuing production, just that there is ample supply. Kaz already said that they have ceased production.

  • Sony, any news on any firmware updates?

  • I’m just waiting mine to return from repaire center, I don’t hate it.. I’m no fanboy, I own all console, then decide..
    the only way to no being just another frustrated fanboy.
    In your consomation society, missing anything = frustration. For a gamer, missing any AAA game = frustration.
    A frustrated gamer = a hater.

    So, xbox fanboy become sony hater
    sony fanboy can become MS hater if he miss something from MS.

    I Like sony not for its name, neither its trademark.. I like sony for its PSX, PS2, PS3, but more precisely for it’s game and the time I got.

    And today, if I only had to onw ONE console, it would be a PS3.. that’s it.

    any way, my xbox360 was one of the deffective (if you already had some/many freeze.. you can count it as a deffective one. just wait HALO3 and some long play..), I appreciate MS to at end acknowledge its console was BADLY constructed hardware-side..

    What I dislike is fanboy crying there isn’t any problem with the xbox360 because THEIR is ok..

  • I just realized something funny… If PS3 is such a value and a long marathon runner why don’t we get even more pricecuts? I mean clearly if Sony can spew this to us consumers why can’t they use the same justifications to investors and cut prices now and make profit later?

    If anyone can do so, please explain why this isn’t viable because it looks pretty realistic to me.

  • I would much prefer if Sony had kept the 60GB SKU, or at least release the 80GB SKU with no pack-in for $499.

    I’m also expecting more demos, content, and PSOne classic games on the PS Store. The competition is doing a much better job with this stuff.

  • keep the 60gb and get rid of the 80gb. lose the emotion engine in the 60gb to cut costs. this way you have one model again which has been working for you since psone. throw motorstorm in free for the holidays(limit 100,000 ect ect) and still keep the 60gb at $499

    ps. get kaz to post on here that what he said about the 60gb being discontinued was false info. because everyone doesn’t know what the hell is going on!

  • @derrickgott007

    Well, that is true – the $500 system is selling, because the general public is not reading these articles. We have to realize that most of us on here are dedicated gamers, who read about the news, the systems, and the games. We read reviews, and research the games, and buy the Ico’s and the game with the Wolf in is whose name escapes me now. Then there is the general gamer, who buys Madden every year, not knowing that it hasn’t been the good since 2003 (not saying that those on here are dumb for buying it, but I needed an example). Most of us here are the ones that care to look into those types of things, and therefore some of us are worrying about it.

    Now that I think about it, likely this won’t have quite the impact I thought it would. The hardcore gamers are getting their (our?) panties all bunched up for what could end up being nothing.

  • Seems like somebody’s job is in trouble. David Reeves has to know that Sony is not please by saying what he said on GameSpot. For his and his family’s sake I hope that he just gets demoted. Sony just had a good E3 and now this. I know they are not happy with his misinforation. Thanks for the clairification Sony!

  • Man, sony must of thought that with this new post the complaining comments would stop. Guess that one backfired. Go to plan B! release the heavenly sword demo and the Lair demo Today.

  • There isn’t any problem with the 360?over a million were defective(Note not an exact number)

    Anyway,there reason people are pissed right is because one.

    EU and AU get no price drop N/A does.Then you have David reeves and Kaz hirai saying the 60gb are going to be discontinued.Thus there are so many sites saying thats not true.Then you have Dave Karraker.Who says nothing about it being discontinued he just says there are ample supply.

    In which really doesn’t answer the question of.Is the 60gb still in production or not.

  • @themaninthebox

    I’d say your evaluation is probably pretty fair but I’d also like to add that a screwup like this can be imprinted in the consumer mind which only tends to hear the negatives and the bad. Any person who reads the articles out now will get the sense that Sony is sadistic string pulling company not to say that other companies aren’t but it’s stuff like this that sticks.

  • This is a bad move all around. You should either phase out the 60GB model and replace it with the 80GB model for the same price or keep them both and have the 80GB model at $550 or something.

    YOU ARE CRAZY to think this is anything but horrible. We already have, AND LOVE, the ability to upgrade our HDDs to 160GB for a fraction of the cost…..so why are you trying to force us to spend more money?? Why!! I fight for you SO MUCH on forums and community talks all over the place but you make it so HARD!! Why are you doing this!!!

  • It’s not really your fault but your clarification came out sounding like a dodge.

    Please make some sort of statement to this effect: Playstation 3 will be available at $499 until such a time as it is available for less.

    People really are jumping all over the idea that when the 60gb model is no longer available, Playstation 3’s price will have effectively jumped back to $599. Please disabuse people of that notion. It will shut up a LOT of people who have been fed far too much anti-Sony ammunition and will help foster the idea that you’re not just playing around with us.

    Brand perception for Playstation 3 has been somewhat precarious. The price drop plus the strong showing at E3 really helped to solidify it. Don’t let the idea that there might be a rise in price at some future point erode that. Please, restore some confidence here and shut down the “Sony Hate Machine” that just continues to spew more and more bile about Playstation 3.

  • I just read about Sony may phase out the 60GB model in the future after it’s sold out and keep the 80GB model in the market (at 599). I have to say, this marketing strategy makes absolutely no sense whatsoever! It is good to hear SCEA’s clarification about this issue, but to be honest Sony, your clarification is just as good as a denial.

    Sony, you should just…either
    1. Stick to the original plan. Have two models in the market, the 60GB model (499) and the 80GB model (599). Don’t change anything!
    2. Scrap the 80GB model entirely. Just have the 60GB model. Maybe sell larger harddrives seperately, like what Microsoft is doing.
    3. or…stick to the original plan until the 60GB model sells out, and THEN drop the price of the 80GB model by $100 early next year.

    Point is, discontinuing the production of the 60GB model now and keep the 80GB at 599 is a VERY BAD idea! You’re gonna have alot of consumers dissapointed if that’s what you’re planning, and your price cut (which was announced 2 days ago) will be completely pointless!!!

    This is coming from a loyal Playstation fan. Sony, you don’t want me dissapointed.

  • I’m thinking here that Sony will respond to the sales trends. If the PS3 60G sells well at $500, they will make sure that a $500 model is available when their current supplies run out. How big will the hard drive be? Will it have an EE chip? Not sure. But if that price point works, they’ll keep it.

    ‘Sides, from where I stand the price point on the PS3 has never been the huge issue. I’m a firm believer in the maxim: “It’s all about the games.” Right now, there’s precious little on the PS3 to interest a gamer like me (I’ve had about as much of Oblivion as I can endure, and there’s not much else in my taste range).

    But if games like Heavenly Sword and Lair deliver like they should and the games keep coming after that, I think that’s the real deciding factor for the PS3. And after this E3, I’m much more optimistic about the games.

    (Plus, I’m psyched about LittleBigPlanet… and I don’t even LIKE platformers usually!)

  • Interesting attempt to spin corporate execs who can’t STFU for the good of the company.

    Last time I checked, Kaz was the president of SCEA, and he said the exact same thing Reeves said, except he didn’t put an “end of July” time frame on it.

    And I quote: “Well, again, just from a hardware perspective, the 499 dollar price adjustment that we did for the 60 GB version, for the american market, uh, we’re no longer in production for that product, so uh once that product is gone from the retailer shelves, then we’re back to the $599 SKU only, so it’s not like we have a two price strategy here in the US market.”

    I find it hilarious that SCEA is trying to dispute Reeves when the President of SCEA said the exact same thing and went further to even say that once the 499 product is gone, we’ll be “back to the 599 SKU only”.

    Heed my advice: Take all these execs. Tretton, who made himself look like a moron to LevelUp, Reeves, who opened this can of worms, Hirai, who perpetuated it, and Dille, who couldn’t resist being a crass jerk, lock them in a room and give them a 12 hour seminar about “STFU For the Company’s Benefit”.

    Every time Sony starts to make headway, one of these guys opens their mouths and has to send the entire company in to damage control mode.

  • LOL, way more funny than this David Reeves’s fiasco (I can’t imagine him not being fired), (please XBox addict, come later)

    from Sony marketing VP Peter Dille

    quote

    “With the Xbox 360 you’ve got an inconsistent design, some have a hard drive, some don’t, and none of them have Blu-ray, and the HD DVD will be out of business in a matter of months. Is this a 10 year product?”

    He continued, “And by the way it doesn’t even work. Do they want to be selling it for 10 years and refurbishing them all for 10 more years? I don’t think that’s a 10 year product. You could disagree with me, or they could disagree with me, but I’d put that up against the PS3 any day.”

  • Defective rate on the 360 is around 50% taking in mind the polls I have been looking.

    13% had to repaired it more than once.

    But this is no 360 blog so, I will cut it.

    ———

    On Topic: Is going to be really funny for the guy who will have to read all of this posts. I think 3 or so have nice comments.

    The rest is complain. Sony drop the 80 model and release some campaign or some contract with some Hard Drive manufacturer to sell the “special PS3 HD” for like 10% cut oof or something like that.

    The discount could be if you present the ticket of purchase of a PS3. And for one time only.That would be SO sweet. Because people won´t be rushed to buy the expensive model, and you still get the price drop.

    Any comments on this guys? (I mean, you, gamers)

  • Just saw the video interview. That [DELETED] is true, once they are done clearring out the inventory of the 60GB. They are only going to sell the 80GB PS3s for $600. This is coming from the horses mouth. “Kaz”
    Anyways, it’s not such a bad idea. This will drive up sales of the PS3 into consumers home. Which means a bigger install base by the years end. By then they’ll have the software to make everyone envy them.
    I still don’t think it’s a bad thing. $600 for what you’re getting is pretty good. (We’ve all seen their 07 and 08 line up. Its pretty damn impressive)
    No more games Sony, just stick with 1 SKU and grind this out.

  • you’re righ blizzard, my excuses.. (but I was answering one guy, at first) back to subject.

    Again sorry

  • Unless you’re going to lower the price of the 80GB model before the holidays, I don’t see how this is a good move. The 60gb will be MUCH more popular with the average consumer unless he/she REALLY wants motorstorm. The $499 price point for the 60gb is perfect and the fact that the 60gb has everything the 80gb does except for 20gb less (which is easily upgradeable if need be) and motorstorm more people will be willing to pay 500 for the 60gb than 600 for the 80gb. I think the only way this will increase sales is if the 80gb is lowered to $499 when the 60gb gets phased out. ESPECIALLY considering the emotion chip is being taken out of the 80gb.

    I already have a ps3, but my friends don’t and I’m trying to convince them to get one, with this price drop they seemed more inclined to purchase one at 500, but if you take away the $500 model, or don’t lower the 80gb price when the 60gb is phased out, then you’ll be no better off with sales then you were before. Not everyone wants to spend 100 extra bucks for 20gb extra (which they can easily upgrade themselves for very little money) and for motorstorm which a lot of consumers will not even care about (although I like it not everyone does).

    So please think that over and don’t make the cheapest option $600.

  • the question simply comes down to, what will happen when the 60GB model is eventually gone? may it be a month or a year.

    will the 80GB model take over as the vanilla SKU, or is the bundle all we are left with?

  • @EBE

    I was not talking to you. I was talking to myself.

    I did not even read your post.

    =)

  • What, Mr. Karraker, is your definition of the “foreseeable future”?

    I’ve seen the interview with Mr. Harai and I’m quite confused now. It seems the left hand has no idea what the right hand is doing.

    If what he says is true and all that is offered is the 80GB PS3 with Motorstorm for $599, the $100 price drop is nothing but an underhanded fire-sale to clear that SKU so you can bump the price back up to $599 and throw an extra 20GB in it and pack it with a game that maybe not everybody wants to justify the $599 cost.

    I feel that if Sony wants to justify the cost (to the consumer) they’ll have to add another controller or game or quite possibly both, much like the European bundle. Plus, all the games being touted for fall and winter had better live up to their promise(i.e. get great reviews).

    For the record, I love my PS3 and the games I have, including Motorstorm. I just feel that others who haven’t bought a PS3 yet will once again either wait for a price drop(or really great games) or buy the competitors console.

    One step forward($100 price drop), two steps back(unjustifiable $100 price increase).

  • It is unacceptable to have the price reduced and then increased

  • Where is the full Sony E3 conference video?? I thought it would be on the PSN Store for download by now.

  • The gain from the 80GB model is that its actually cheaper to produce than the 60GB model.

    Taking out the EE Chip cuts down on prices, and buying the 80GB Hd’s in a bulk is actually cheaper to buy than the 60GB Hd’s.

    The 80Gb is only available in a bundle for now, because they still need to clear out all the 60GB in the inventory or else they’ll lose even more money.

    Once the 60Gb’s are pretty much cleared out, I assume they will introduce the 80Gb as a standalone model tagged at the $499.99 price.

    It’s more logical to introduce the 80Gb model and stop production of the 60Gb model in order to cut down on prices.

    To make both models appealing they cut the price of the 60GB to $499.99 and bundle the 80GB at the $599.99 price.

    The 60GB is still a great buy, because it stills packs in the EE Chip for better backwards compatibility, but over time Sony will get better at emulation for the models that don’t have it.

  • Yeah, you better just drop the price of the bundle no matter what you were planning, this isn’t going too well.

  • once the 60 gb are done, sony will replace the 60 gb with an 80 gb ps3 for the same price, and than offer an upgraded sku with games and controllers

    the 2 different ps3 prices are here to stay

  • why is this blog keeps on thinking that I’m doing a double post. it wont let me post my new comment. >_

  • @GreyFox

    It could be but I think that the 20 GB increase is useless. And they can not put a bigger hard drive because the people would buy the new model.

    Is a lose-lose situation like someone said.

  • All of the talk of the 80GB price cut after the 60GB are gone is pure speculation, nothing more.

  • the Hd’s are upgradeable.you get 80gb you can easily upgrade it to more then that.

  • Stick with 1 SKU!!!

  • ??? Why so much commontion over this post???

  • i bet next year there will be a new sku, to replace the 80 gb

    120 gb hard drive
    2 usb ports
    no memory slots

    that would save even more money

  • Sony surprise us with Ninja Theory’s Heavnly Sword demo this evening :P

    I’m going crazy for this was once launch title!!!!

  • I think I speak for us all when I say we demand an explanation for Kaz Hirai’s comments as well as Reeves.

  • Mr.Kaz hirai?Mr. David Reeves? We hope that you all are reading our comments.We would like for you both to clear this mess up.Please(This may be pointless to ask)But give us the truth as to whats going on here?

    If you find it within your selves to come on to your blog and explain to us what your trying to do.We would very much be appreciate it.

    The world in a frenzy right now.They arn’t trusting spokesmen for the company right now since it was You two that both said this.

    So please come on here and tell us what you guys are going to do?Give us the truth,we don’t want contradicting statements either.Only the truth.

    (The truth shall set you free)Right now it feels like the walls are crumbling down on you guys.If you want to be freed from the rubble then the truth must be known.

  • @Majimojo1985

    That sounded cool..like a curse or something like that

    xD

  • Hirai: 60GB PS3 “no longer in production”
    SCEI CEO tells Norwegian television that Sony won’t have a two-price strategy in the US market, SCEA says $499 model will be available “for months.”
    By Tor Thorsen, GameSpot
    Posted Jul 13, 2007 9:14 pm GMT
    SANTA MONICA, Calif.–Today, the E3 Media & Business Summit wound down in Santa Monica, with at least one exhibitor having already packed up and left the show floor at Barker Hangar. However, this morning saw the biggest controversy of the show heat up, with a maelstrom of confusion surrounding the $499 price drop of the 60GB PS3, which was just announced Monday.

    Last night, Sony Computer Entertainment Europe CEO David Reeves told GameSpot that the discounting was merely a mark-down of a model which had been discontinued. Just hours later, his statements appeared to be contradicted by a senior Sony Computer Entertainment America spokesperson, who said that quotes from Reeves in the press were “not accurate.”

    “As announced this week, SCEA’s product offering in North America consists of an 80GB PS3 available in August at $599 and a 60GB PS3 available now for $499,” SCEA senior director of corporate communications Dave Karraker told GameSpot. “We have will have ample supplies of both models to meet the needs of our consumers for the foreseeable future.”

    At almost the same time, a television interview with the global head of Sony Computer Entertainment settled the matter once and for all. Speaking to Norwegian game-news outlet VGTV, SCEI president and group CEO Kaz Hirai said in no uncertain terms that the 60GB PS3’s days are numbered.

    “From a hardware perspective, the $499 price adjustment we did for the 60GB version for the American market, we’re no longer in production for that product,” he said in an undedited on-camera interview. “Once that product is gone from the retailer shelves, then we’re back to a $599 SKU only, so it’s not like we have a two-price strategy in the US market. We found out very early on how consumers react to having just one SKU as opposed to two.”

    SCEA has subsequently confirmed the phase out, but emphasized that it would be gradual. “The 60GB PS3 will be available in North America for $499 until supplies of that unit are depleted,” Karraker told GameSpot in a follow-up interview. “We have ample inventory to meet the immediate needs of consumers in this territory for several months to come.”

    Karraker also responded to criticism that loudly promoting the new $499 price point while quietly discontinuing its production amounted to a bait and switch. “This is absolutely not a bait and switch,” he said. “We are offering a full featured PS3 for $100 lower than the original price and will do so for months to come, allowing consumers the opportunity to acquire this model at this adjusted price.”

  • According to Karraker, “The 60GB PS3 will be available in North America for $499 until supplies of that unit are depleted.

    Basically, IT HAS ALREADY BEEN DISCONTINUED. With the XBOX 360 price drop, PS3 will be KILLED this holiday season. Goodbye exclusives and future buyers. Also, Sony refuses to comment further which is basically a slap in the face.

  • really, why most of you really care??
    you want the cheaper ps3?? go and get it now before its gone, plus you will get full ps2 compatibility with it

    when they are gone, sony will see that the more expensive model will not sell nearly as good, and will have to lower the price in order to compete, they have no choice

  • Unless when the 60gb is gone.the 80gb becomes the 499 main priced console.Sony is this what your plans are?Even though the 60gb drive can be upgraded to 80gb?

  • i think sony was onto good thing lowering the price then the get knock it out. i dont no if sony will ever beat XB or nintendo. Sonys products are to much money they need to bring the price down so people can afford it you are losing Exclusives left and right im a little upset on the future of playstation since no one in this company seems to know why people are not buying the system. I think ps3 has more games then Wii but wii is killing PS3 and its not cause of the games it is the price.

  • This is just a PR mistake. A mistake I thought you guys were done after the turn around point at GDC.
    I wished you guys have never claimed that there was a price drop. Why announce a price drop and then tell us its no longer in production? The market needs is a lower price point, not a bundled in game and a 20gig increase for $100 more dollars.
    You guys had a great showing for E3, Killzone 2 was great, Heavenly Sword looks stunning, and Warhawk is just pure fun. This goes back and shoots you guys in the foot ONCE MORE.
    You make owners of the playstation 3 (myself included) the dumbest people ever. I am very disappointed.

    Please continue with $499.

  • @242: We care cause it’s deceptive to call it a price cut when they’re, more or less, clearancing out the systems instead and getting a positive PR spin on it. Would consumers have snatched up the PS3 that quickly if they know that the system they’re buying will get “phased” out for a newer one in mere months? To me, it’s a shady move.

  • Sony, if you want to survive in this market you absolutely need to keep a version of the PS3 at the $499 price point. Myself, I became a new PS3 owner this last Monday when the price dropped. I would not have bought one otherwise. I have several friends and relatives that are also considering a purchase, but will not do so if the price is once again $599 even if it includes a slightly larger hard drive and a game included.

    Now I obviously do not know your plans, but if you are going to discontinue the 60GB model I sincerely hope that you then replace it at the $499 price point with the 80 GB model. With your improvements to production costs and removal of the EE chip, you should be able to do this with a minimal (if at all) increase in losses. Doing so will put a lot more pressure on your competition and increase your market share significantly.

  • I love my PS3, I love the games that are coming out for it.

    I just cannot believe how badly Sony is screwing it all up.

    From Kaz Hirai himself: “The $499 price adjustment that we did for the 60 GB version for the American market, we’re no longer in production for that product. So once that product is gone from the retailers shelves, then we’re back to the $599 SKU only, so it’s not like we have a two price strategy here in the U.S. market, which we found early on consumers react most to just having one SKU as opposed to two.”

    I just cannot effing believe it. Why would you do this, Sony? How could you screw it up this badly? I guess what the Xbox fanboys have been saying is true: Only Sony could screw up a price cut.

    The 60gb units run out and suddenly we’re right back to the $600 SKU only. And Sony thinks that because the holiday season is coming up, they don’t need to worry about the price affecting sales.

    It’s like Sony *WANTS* to lose. What the hell? You’ll never get through your ten year cycle at this point. You’ll be lucky if you make three before the games divison consists either closes up shop entirely or has to move onto a new and much cheaper hardware iteration.

    Do you hear this, Sony? Are you reading this? That sound, these words? THIS IS A SONY FAN LOSING FAITH IN SONY. All that good will generated by the price cut and E3 has been ERASED. All of the good will generated by opening up this blog and telling people that you’re listening to the consumer and that you’ve learned your lesson from the launch… GONE. In fact, it’s now worse than ever.

    SPEAK TO US, SONY. Tell me I’m wrong. Tell me that the $500 price point will remain even after the 60gb units are gone. GO ON RECORD RIGHT EFFING NOW AND TELL US THAT PLAYSTATION 3 WILL BE AVAILABLE AT $500 UNTIL SUCH A TIME AS IT IS AVAILABLE FOR LESS. TELL US THAT YOU WILL NOT RAISE THE PRICE OF ENTRY RIGHT BACK UP TO $600.

  • I agree. It’s a very shady move and it embarrasses all PS3 buyers in the face of others. It makes us look like incompetent idiots who paid $500/$600 for an experience that will be found on the 360 which has taken all exclusives and will soon be priced at “mass market pricing.”

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