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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  • Since I bought mine two months after launch I see it this way:

    Well anyone who buys now gets the Wifi and the Memory Stick Slots that I personally didn’t get for when I bought mine (20GB model at this price), that’s more hardware for less compared to when I bought it (which is really a price drop if you were going to buy the 20GB since it was cheaper but didn’t since it was missing a key feature like Wifi). And there’s going to be even less hardware differences if they do this again since the only difference between the 60GB and the 80GB model is the tiny 20GB more on the HD, not even the Wifi like with the 20/60 difference.

    Who knows… if the $499 60GB PS3 is phased out then there will extremely likely be a $499 80GB PS3 in it’s place even if they can’t tell us about it to make sure the 60GB’s sell (this cycle will likely continue until they can afford to get the system down to $400, would be nice this Christmas if you can Sony! :)), since the 80GB hard drive will probably cost less than an older outdated 60GB hard drive to mass produce.

    But if $499 is worth it for you it’s not worth waiting since the only difference nowadays is HD space which you can upgrade yourself for less money 6 months from now (if you want to) with a bigger upgrade than just 20 more gigs, especially from online electronics deals.

  • I am going to make a prediction…..

    “CHRISTMAS TIME PS3’s TO BE 80GB $499.”

    Flame me all you want, but thats what I am predicting. The 60GB will sell out before then, and SONY will drop the 80GB to $499.

  • IntelSilver:

    “- If they actually ended it already, then it would be wise to drop the 80gb model to 499 as soon as there are no more 60gb left.”

    I think this is obviously what they are going to do, they just (with some common sense thought on the part of consumers) can’t tell anyone about it since most uninformed people who don’t realize you can just upgrade your own HD down the road would just wait thinking a measily 20GB more is worth waiting a few months for a $100 price cut on the 80GB model when the 60GB is already that price, even though by the time it drops you’ll be able to buy atleast say a 100GB drive (or bigger) for that much. It’s almost impossible to make people realize that the price of these HD’s at retail drop pretty quick (especially on retailer sales events) so you’ll be able to upgrade your own FASTER than Sony can do it for you, if you just shop online for a HD from Seagate, WD, etc or watch for Best Buy sales ads. (Costco has had 500GB USB drives on sale for ridiculously cheap prices for example, and they’ve done the same for Internal HDs in the past as well, other stores do the same)

    I wonder if that makes sense.

  • Last post for now since I read a very nice earlier post that got buried fast:

    ————————————————————————
    “haldalish | July 13th, 2007 at 4:30 pm
    answer these question for me, just simple one word answers will do?

    was the ps3 60 gig $599 a week ago?
    is the ps3 60 gig 499 now?
    can you find the 60 gig in stores?”
    ————————————————————————-

    Yes, yes, and yes. Well said, that by definition IS a PRICE-CUT (you get MORE for LESS) no matter what anyone says. People need to use their heads more and stop listening to “marketing speak”.

    (I’m sure some of the posts are genuine but I’m starting to guess a lot of the people posting right now are Xbox fanboys and MS’s well notorized Board Poster’s who are paid to spread filth who heard Moore’s response to the price drop, since they are spitting it back out WORD FOR WORD plagerizing him).

  • Dave – first, I completely appreciate you even taking the effort to come here and use the blog to clarify something that has a lot of us miffed. We completely understand that we shouldn’t be reading into it any further and that when the supply has depleted that you will make the necessary changes in strategy to insure that there’s a console available at a more accessible price point.

    But here’s what we’re feeling….

    …just the fact that something like this needed to be said doesn’t really give me the warm fuzzy (and I’m sure some of the software partners would have to agree.) Given the response to the price drop, this “fine print” just damages our comfort level a bit. I’m not here slamming anyone or yelling, but just telling you how information like this is received when you hear it. Nobody’s going to have any less faith in the technical abilities of the platform based on a marketing discussion, but it just feels like you guys aren’t really being straight with us and our trust level is a bit withered.

    Being honest. Thought you’d appreciate the feedback. (Now, flame on, fanboys. But keep in mind that I have a launch PS3, had a PS2 and unlike many others, bought the PS1 and B.A. Toshinden on 9/9/95 before you decide to label me.)

  • @DangerMouse

    For one side I think you are correct..bit this said by David Reeves confuse me..

    “They’re going to introduce an 80GB model at $599 with MotorStorm on August 1, and they’ve got stock in trade of the old model. They’re just selling it off, they’re not dropping the price. The price from August 1 is going to be $599 because all the 60GB models will have gone. They’ve got to find a way to get rid of the old stock, and that’s what they’re doing.”

    That’s why I see it a some offer and not like a price drop.

    And don’t tell me not to take this words textually because if I can not trust some Sony spokesman I don’t know who should I listen to.

  • I hope Sony you do the right thing and keep the 499$ price drop.Remember the press wants to kill all of Sony and the Playstation brand so whoever is in charge keep it or you will regret it.The fans will remember and you want them to remember how you all said you were hearing us so here is your chance don’t screw this up I love Sony and Playstation brand.

  • So the 60 GB is getting dropped or what? Thats what everyone seems to think (rightfully so since Kaz said it in an interview) I swear, every time I think Sony is back on track they pull something like this and draw a bunch of more bad press. So they tease consumers with a price drop, only to eventually raise the price back up, and none of the executives seem to know what the others are talking about. You guys need to get your stuff together, because its looking archaic. I am a huge Playstation fan (I owned a PS1, PS2, and currently a PS3) but you guys are looking bad in the eyes of the consumer and the eyes of developers. Why would they build games for a system that goes through pricing limbo every year? A system that confuses the consumer? (I can already hear customers going into the game store to get a PS3 and asks “wait, wasnt that $500?”

    Please, PLEASE keep the price cut and leave the 60GB alone!

  • Why not just make the 80GB model temporary. Phase out the current 60GB and replace it with a 60GB without the emotion chip and reprice it at either $399-$450.

    If the plan is for the 80GB to replace the 60GB with a $599, prepare for alot of people to be upset. Maybe even 3rd party devs?

  • I want to buy one, and 499.99 takes less time to save then 599.99 does. Just make sure you keep one SKU at 499.99.

  • Look people it’s ****ing simple. I’m 100% right so read hard.

    I’ve got a 60 gig model and I’ve got an 80 gig model. The 80 gig model is actually what I want to be selling, because it’s cheaper to make but the 60 gig model is what’s already stocked in store shelves.

    I can introduce the 80 gig at the same price as the 60 gig and sell them against each other, in which case nobody buys the 60 gigs ever.

    I can hold off on the 80 gigs and sell 60 gigs until the stores are all out of stock, at this point potential customers buy other systems as they can’t find mine in store.

    I can stock the shelves with the 80 gig at $100 dollars more, throw in Motorstorm. Then people who were going to buy Motorstorm anyway buy the 80 gig, people not interested buy the 60 gig and stock gets cleared out. Once the 60 gig is almost gone, lower it to $450, it’ll be gone in days. Make the 80 gig the new $500 at the very same time, and bam, we’ve transitioned from the 60 gig to the 80 gig without running out of stock or flooded the channel with 60 gigs nobody will buy.

    Or I can be like Microsoft and announce we’re making a version of 360 that doesn’t explode while the stores are all stocked with the version that does explode. That’s ****ing brilliant.

  • self.confessed.cynic

    @ Dave Karraker

    Thanks for reposting that bit of info. The statement of “months” is a nice first step when it comes to repairing this utterly idiotic misstep DIRECTLY after the perfectly constructed hailstorm of awesome PR which was E3. (reminds me of the DMC4 announcement after GDC2007)

    Good job on that – but more importantly, there is (and I assure you) one simple way of fixing this entire situation.

    All you need to do is post one thing – a promise;

    “A fully featured PS3 in SOME form, with a minimum of 60GB HDD will indeed be available in the NA market after the current 60GB stock is depleted, at a price point of $499.”

    It doesn’t matter if you currently plan to have a 20GB PS3 come out as an option later on and no 60GB, whatever right now. The damage to PR has been too far reaching for no reassuring response of a definite nature to be made.

    Done.

    I hope I’m heard on this one, because, quite frankly, this is going to effect every discussion of Sony’s otherwise excellent E3 from here ’till TGS.

  • @413

    I completely agree!

    I don’t understand why everybody can’t see this. It would be a marketing DISASTER to raise the price back up after people are so used to (after several months of stock) a non-bundled ps3 for $499.

    Sony can’t officially state that the price of the 80gb is going to drop when the 60gb runs out, so they’ve done the next best thing by stating that they will review the situation at the time.

    The big PR mistake that sony has made this in this case is not getting different people in the company saying the same line. That is what has caused all this confusion and uproar in the first place.
    Hopefully Sony learn from this and take steps to prevent it from happening in the future.

  • @413 & 415

    I totally agree with both of you. But Sony COME ON!!! this kinda of stuff cannot happen. This is a PR Nightmare. And this is not going to go away anytime soon. It’s all over the internet. You should of never announced the 80 Gig Version on such a grand scale. It just confused people. Just announce the price drop of the 60, wait until there is like 10% left in NA and then start shipping the 80 gig at the $499. price point. Not everyone has access to your closed door meetings, to know exactly what is going on. Most people feel like they are being set up to buy something inferior now. I understand what you plan is and I have faith in you, but come on. M$ knows what you are up to now aswell. So be prepared for them to strike back. Best of luck… PS3 Camper of 2006 *44 hours in line* please don’t make it all worthless.

  • Dave, thanks for posting. I’m glad to hear the 60GB model will be around for at least a while longer. However, could you or someone else from Sony shed some light on your strategy with this whole thing? Because a lot of us here already own a PS3, myself included, and are more worried about the future of the system with decisions like these, and how it will effect the investments we’ve already made. Not whether there are ample 60GB models available or not.

    I think most of us were upset with this news initially, but you could probably set a lot of minds at ease by sharing your hopes and plans for this strategy. I’m sure this news was meant to come gradually, and Reeves screwed up by speaking too soon, but what’s done is done now, and I think you guys owe us further explanation. Not just saying, “Ok, here’s what is going to happen”, without telling us why.

  • I don’t know, I could be wrong, but I don’t think Sony is that stupid to lower the price of a console just to raise it back up. It may just be me, however I remember them making modification to the PS3 in Europe’s grand opening. They made a model that was cheaper to mass produce. Maybe, just maybe, Sony is trying to bring that model to the US so they can sell the PS3 at a cheaper price. Maybe even cheaper than the current price cut so that they can make enough money to make price cuts in Europe and Japan. There is got to be a reason they are making price cuts in our country only. Maybe that’s because more PS3 were sold here. I don’t know. But I do know that Sony knows a whole lot more about marketing than we do. I think they have more of a firm idea on how stupid that would be to announce a price cut and then bring the price back to its original point. Don’t forget the PS3 is going to age in those months of phasing out the current PS3 model Dave was talking about. I think they are trying to make that system cheaper to mass produce so that’s why they are phasing out the current gen of PS3 ($499). Thank you. Hope to hear someone’s response to me.

  • i really hope you guys are lowering the 80gb when 60gb is gone.

  • Hmmm, y’know, the more I sit here and think about this (which I probably should have done earlier), the more I think I see what they’re doing. I’m sure someone here has already mentioned this or something similar (I haven’t read all the comments), but I think Sony is just basically trying to speed up their installed base as quickly as possible. Epecially considering major 3rd partys such as Konami putting pressure on them about it (Metal Gear Solid 4). Thus the reason for something this drastic & odd.

    With everyone quickly finding out the price will be going back up when these run out, it makes a lot of people who are thinking about getting a PS3 go ahead and rush out to get it at a discount. Many people were buying them as soon as the “price drop” was announced, but now with this news I’m sure it’s sealing the deal for a lot of people who were still on the fence. Not to mention people who know the Emotion Engine won’t be in future models. Combine both of those things with the 5 free Blu-Ray movies deal and you’ve got yourself one hell of a reason to buy a Playstation 3 RIGHT NOW. It’s also funny that this “slipped” out AFTER an impressive E3 conference from Sony which showcased many good games coming soon to the system.

    Anyhow, in my own personal opinion, this isn’t exactly the most noble of business tactics, and maybe that’s why Sony isn’t rushing to shed any light on their strategy for this move. But hey, I’d like to see the installed base grow since I invested in the system. So if it works I have no problem with it. I think a lot of us should calm down. It’ll probably end up a good thing for the future of the PS3 when all is said and done. That said, the only people who should complain are the ones who can’t get a 60GB model for $499.00.

    I’ll be the first to admit I definitely jumped the gun earlier.

  • #418

    At this point saying anything else or nothing at all would just dig a deeper hole. They are screwed either way.

    If they confirm that an 80GB version without games would retail for $499 once the 60GB models sold out. Then who would buy the 60 if the 80’s going to $499 anyway.

    If they say nothing. It’s like saying the 80GB model will remain $599 after the 60GB is out of stock.

  • Just to go off subject here for a second. I guess E3 is over and we didn’t see any demo’s of games feature at the E3 event. My question to anyone who posts comments here is do you remember when it was said in a blog that the Heavenly Sword demo was “coming very, very soon” ? Can anyone do some backtracking at this site and see if they can find it. For some strange reason those comments have magicaly dissapeared.

  • Another thing to think about is this. By the time the 60GB is cleared out, some of the heavyweight titles they have on the way will be out, and a few more dropping right around then. Plus the installed base will have grown considerably from the huge sales increase, which means there will be more announcemnts & support of games from 3rd party developers. Which will make the $599 purchase more justifiable. Not to mention I’m sure they will have at least some sort of holiday console bundle / deal going on anyway. Another thing to consider is that the majority of consumers don’t read and keep up with news like this. Therefore, I think it’s safe to say that most people won’t even realize it’s gone until it’s gone. People like us who are in the know, are in the minority. Overall this is a clever & cunning strategy to increase installed base in my opinion. We shouldn’t be complaining. If it’s good for Sony it’s good for Sony gamers as well.

  • Opps, my comments in #423 is wrong. Guess the comments of the demo for HS wasn’t metioned here. My bad.
    Anyhow, continue on telling Sony how to run their business. I remember paying $450 for my PS2 when it was first released, now I get one for $99 bucks. Guess by the way people are acting on here, I should be insainly pissed off about spending all that money, lol.

  • I think why everybody including myself is so upset is because of all the excitement of the price drop and all the great news out of e3 from sony only to find that they aren’t really dropping the price. Just clearing inventory. Sony made it seem as if the price were a permanent drop offering 2 skus. Than tell us the’re quiting the lesser expensive one. Its a real downer. Cancels all the sony e3 excitement out and it makes me real upset. Unless they do something else like cut out motorstorm and lower the 80 gig sku to 499$ after the initial allotment of 60 gigs run out, sony’s up the creek. I love sony, but they dropped the ball by handling this in an untactful manner. They should have at least said right from the start that they were ‘discounting’ the 60 gig sku in favor of the 80 gig.. I just don’t get it.

  • Plain and simple…you could have god make games for the PS3 but the system will never move out of third place at $600

    you think the E3 show moved those consoles the last few days??..it helped…the “supposed” $499.99 price is what moved more consoles this week then any KZ2 demo/trailer/in-game etc…

    Every game forum is back to bashing PS..we went from kings to jesters in the last 24 hours…

    I went to bed last night proud…now Im back to defending Sony.

    In no way can any PS console at $600 bucks destroy 360…

    Its all about making the people still playing PS2/old-Xbox/GC jump to next gen…and they wont with a $600 price..sorry.

    And BTW this word game, circle of “wtf is going on” isnt helping.

  • I hear ya PKM.

  • PLS MAKE THE NEXT BLOG ENTRY DEAL WITH THIS PROBLEM AT HAND.

    I WATCHED E3, I SAW THE TRAILERS, I READ ALL THE REVIEWS..I COUDL CARE LESS ABOUT 2 GAP MEMEBRS.

  • PSX I totally agree with you. I love sony and am a big fan of PS and 360. I was really excited about all the hot new games coming too. Then this news, I really dont know how to feel. Im really just hoping that this is some crazy marketing stunt and that they will drop the price of the 80 gig once the 60gb is gone. Please Sony don’t let ur fans down!

  • ” 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.”

    Im SO glad to see those words lol. Also there is no problem at hand… PKM did you just make an account to complain? Anyway its NOT a war. No system is out to destroy any other system. Quit acting like E3 or the gaming market is some big battlefield because its not.

    Also kudos on the beautiful Heavenly Sword, Ratchet and Clank, Killzone 2 (WOW), Uncharted, and Warhawk. Also Echochrome looks really intresting. Hope to hear some news about some RPGs heading to the system as well. And of course a demo of Lair before August and a few other games wouldnt hurt.

  • I second that PXM

  • If this wasnt a war..we would be Wii fans…it is a war…its 360 PS3 war, like it or not.
    You wanna keep losing exclusives? You wanna get crappy ports?
    Then dont support the War.

    Ive been a loyal supporter of PS for sometime and have chimed in on all blog post positively..but today was bad, real bad.

    Seriously you think that since this blog post is nearing 500+ post by tommorow morning this isnt important?

  • should have added this to my post above..

    Competitions (WAR) is great, but that doesn’t mean it’s great to have even races. It’s better to have losers and winners it pushes the industry forward at a more rapid pace that way.
    __________________

  • Karraker, no offense, but you talk a lot of PR crap. How about addressing the REAL issues? Like if you guys actually give a RATS ass about what we say.

    Listening and Hearing are TWO different things.

    What do you mean by “Working on getting demos”? Is that the same as “Working on getting in game XMB access”? or “Working on Update 2.0″?

    JAPAN ALREADY HAS WALLPAPERS…WHERE ARE NA’S? AND ALSO WHY THE HELL IS THERE STILL NO IN-GAME XMB. I’m glad you people get burned in the media, you deserve it with your sh!t service. Amen.

  • ^^Its just been a bad day for Sony LOL

    no matter what I say ..I love you Sony..no crap box will ever grace my HDMI ports..but this blog has never ever since its launch took a turn for the worse liek today.

  • Thanks for the clarification, we’ll be fine, let’s move on =).

  • well considering the large amount of comments to this effect, Sony might wizen up about this mess of a price structure (which might even be more ridiculous than Vista’s) and forget the other models. Make one model, focus on it and focus on the features & games, not the hardware. Prove to us that you are listening and give a damn

  • They don’t give a damn. At least Microsoft is paying $1 billion out of their own pockets to help its loyal users. Sony repeatedly spits in our faces with the lack of content, lack of PSN features such as custom soundtracks and wallpapers, and fake price cuts.

  • MODS, PLEASE PASS ALONG TO ANYONE AT SONY WHO STILL CARES:

    YOU’VE LET EVERYONE DOWN WITH YOUR DOUBLE-TALK, BAIT ‘N SWITCH BS. PLEASE STOP. MAKE IT RIGHT. CUT THE 80GIG TO $500 AND QUIT TRYING TO DUPE PEOPLE. YOU ARE TAKING A BEATING EVERYWHERE ON THE WEB, AND YOU CANNOT AFFORD ADDITIONAL BAD PRESS. I’VE SUPPORTED THE PS BRAND FROM DAY ONE, BUT YOU ARE LETTING US DOWN HERE. MAKE IT STOP.

    SINCERLEY,
    LOSING FAITH

  • Jeez, you people are spoiled. I’m going to laugh at all of you nay-sayers when you find out that in-fact, the 80GB will be $499 after the 60GB is sold out. Sony isn’t going to reveal all their pricing plans 5 months early… it makes no sense business-wise.

    Also, the whole complaining about content thing… please stop. They’re WORKING ON IT. They’ve continuously been updating with more and more content on a regular basis, especially with the firmware updates. Some of you people need to relax and realize that they can’t dump everything on us at once. Be happy that we’re getting a Heavenly Sword demo this month.

  • Yes i agree with Cagalli, the price drop happened so if you dont have a ps3 THEN BUY ONE QUICKLY!! before there’s no more stock. But sony will most likely drop the price of the new 80gb model by suptember or Christmas anyway! And there defently is alot more content on the way that justifies the price anyway, so stop moning like little five year olds about everything!

  • Also, if you look around at retail stores and websites, you don’t see anything mentioning “temporary pricedrop” whatsoever. The $499 price point is here to stay people.

  • LOL, Sony is playing you all for fools. They’re going to sell like wildfire because of this, and they’re going to sell the 80gb SKU for $499 this Christmas. They’re brilliant, yet no one even sees it (except me of course).

  • To the poster above me, it’s not that big of a deal to those buying a 60GB model right now… because, you know, you can swap out your own 2.5″ drive whenever you want. I believe the largest size available now is 200GB. It’s nothing to make fun of people over.

  • The 80gb will not be $500 and even if it is the 360 elite will only be $380

  • Why wouldn’t it be $500? It’s cheaper to produce than the current 60gb $500 model

  • you whats MOST ridiculous about this whole thing…

    The PS3’s problem ISN’T storage…. it’s price… no one really needs a bigger HDD yet, what everyone does need is a lower price… and even when we do need a bigger drive, it’s a straight swap.

    Why confuse people with things no one need.

    What the PS3 needs is a competitive price… not another SKU and more storage.

  • Quote Dave Karraker: ”Hey Guys. Let me jump back in here to answer some questions. Kaz has confirmed that we have stopped production on the 60GB in Asia. However, we have a very ample supply of systems still here in the North American market and will be able to meet demand for months to come at the new $499. We will keep monitoring the market and take the necessary steps to meet consumer needs once the 60GB model is depleted from retail. ”

    Thanks for clearing things up Mr. Karraker! Congrats with the awesome E3!

  • Well at least that leaves us with some hope. Perhaps there will still be a low price after all…

  • Look, I’m no marketing expert, but I think the people suggesting that after the 60Gb units clear, the 80Gb will be dropped to $499 are right. Sony has set the price of a PS3 unit at $499 – they can’t then raise that up again, regardless of percieved added value. It’d be market suicide. Regardless of hard disk size, they really need to sell a non-bundled SKU, and it now can’t sell for more then US$499. If it does, no one will buy it, and I’m sure they know that.

    However, they’re sure as heck not going to tell us that the price will drop. Because if it becomes common knowlege, why would people buy the 60Gb? They’ll hold out for the +20Gb at the same price. While 20Gb doesn’t seem like a whole lot, when the only cost is waiting a few months, people will wait for the “better” unit at the same price.

    I concur with everyone who has said the same: 80Gb will drop to US$499 when the 60’s are gone. Now if we can just get a fricking real price drop in Australia…

  • Thinking about it some more, the sony strategy makes sense. Without any doubt, they are going to lower the price of the 80gb model once the 60gb model is gone. But they can’t do that now because they want the 60gb gone first, hence the lower price compared to the 80gb version.

    And ofcourse, they can’t tell this to us potential customers now because none would buy the 60gb version anymore. That is ofcourse where they messed up. The situation was handled really badly.

    In the end, if i were in the US and had the ability to buy a ps3 for $499 now, i would. After all, it IS a $100 price reduction and $499 is a price i would want to play for a good blu-ray/dvd player with a promising console as an added bonus.

    But i’m in europe. We didn’t get any price reduction. That really sucks but none is talking about that.

    So if you are in the us, consider yourselves lucky. I know i would.

    (ps. i am absolutely no ps3/xbox/whatever fanboy).

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