Sega exec calls PS3 prices a concern

By Derek Sooman on July 4, 2006, 12:32 PM
Scott Steinberg, America executive of SEGA has claimed that the high price of the PlayStation 3 is a matter of concern. The prices of the PS3 - US$499 for the 20GB model, and US$599 for the 60GB version - are what Steinberg claims as too expensive for a lot of families to afford.

Nevertheless, Steinberg does contend that the prices are within expectations - the PS3 is, after all, a very powerful and impressive device indeed. He believes that the consoles will sell out despite their hefty price tag. But he also believes that Nintendo's policy of producing its cheaper Wii console is likely to meet with greater success.

"Definitely, the [price] is a concern, but globally the brand is so strong that when you think about the marketplace in Japan, North America and Europe, Sony has been the clear winner. So there's a lot of marketing momentum and sales momentum that they're going to absolutely carry into the PS3."
Ubisoft president Yves Guillemot claims to be optimistic about the prospects for the consoles, but believes that the devices will have to drop in price by 2007. Speaking to business news agency Bloomberg, Guillemot claimed that the price point could be a major stumbling block.




User Comments: 9

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DragonMaster said:
There are some poeple that can buy the PS3.Look at how easily high-end limited-edition Dell XPS systems sell, how many expensive LCD and plasma TVs are sold and why a lot of stores carrying HD-DVD at it's release date were out of stock after less than a week.Edit:Hey, there are video cards that are more expensive than the 60GB PS3 on the market!
Phantasm66 said:
The PS3 is not THAT expensive.
Tedster said:
A video game system that expensive will be out of the price range for most families. I think most who see the price will decide on getting a computer rather than that. I know I'd never buy a game machine that expensive.
atk spade said:
[b]Originally posted by Phantasm66:[/b][quote]The PS3 is not THAT expensive. [/quote]Well to a big timer "gamer" (I use that term loosely) like meyself, no. But when a 12 year old boy asks his parents for a 600 dollar holiday gift, that is a different story.Isnt sony loosing money on each PS3 they sell?!? That "cell" CPU must of cost alot for R&D
canadian said:
Its not that bad a price for the technology. Deal with it!
furatail said:
[b]Originally posted by canadian:[/b][quote]Its not that bad a price for the technology. Deal with it![/quote]No, for the uber "elite" gamer nerd the price is probably expected. But the "elite" does not make up the majority of the gaming population. Kids asking mommy for a christmas ps3 is where they money is at. Why else do they release gaming consoles before the holidays?Sony has lost me with this ps3. I used to be a loyal playstation fanboy, but this new console is not just a gaming machine, it's a freakin' computer. I have $3000-3500 worth of pcs and other technology, I don't need another pc or another video player. I want a gaming console that excells the rest. I don't want to pay extra for crap I don't need or won't use. Now, for the technology it is a rather decent price for what you get but $500 is too much for just a gaming machine, strip it of the extra crap and just give us a gaming machine. Maybe I should get a Wii.
smtkr said:
The techspot price apologists are laughable. Go ahead and buy a PS3 for 600 USD and pay 60-70 USD for a game. You get an evolutionary console, a blu-ray player, and 1 game for more than 650 USD.I will buy a Wii, 10 back catalogue games, and 3 Wii games. I get a revolutionary console, my choice of a slew of the greatest games ever made, and 3 Wii games for ~450 USD.I'm trying to figure out why people think LESS FUN is worth 200 USD extra. Oh, right: Teh GraphX are Teh RoXorZ!
9Nails said:
[b]Originally posted by furatail:[/b][quote]No, for the uber "elite" gamer nerd the price is probably expected. But the "elite" does not make up the majority of the gaming population. Kids asking mommy for a christmas ps3 is where they money is at. Why else do they release gaming consoles before the holidays?Sony has lost me with this ps3. I used to be a loyal playstation fanboy, but this new console is not just a gaming machine, it's a freakin' computer. I have $3000-3500 worth of pcs and other technology, I don't need another pc or another video player. I want a gaming console that excells the rest. I don't want to pay extra for crap I don't need or won't use. Now, for the technology it is a rather decent price for what you get but $500 is too much for just a gaming machine, strip it of the extra crap and just give us a gaming machine. Maybe I should get a Wii.[/quote]I suppose the real question is how many of Sony's current customers fall into the Uber Elite "HD-TV w/ HDMI inputs" owners and ready-to-upgrade side and how many customers fall into the casual side. I suspect that Sony might make Wii converts out of it's casual PS2 owners!I would fall into the casual corner, and a nice BR-DVD drive sounds good. But not when I don't own an HD TV, nor do I plan to repurchase my DVD library at $40 a pop and my games at $60 each. I find it hard to see the value in that when Wii is so much more affordable, and as someone else said - you have the back catalog incentive which is really tugging on my interest. I recall PS2 fanboi's arguing that good games are not about Xbox's graphic powers. Now the shoe seems to be on the other foot.
Malibu Stacey said:
[b]Originally posted by furatail:[/b][quote]No, for the uber "elite" gamer nerd the price is probably expected. But the "elite" does not make up the majority of the gaming population. Kids asking mommy for a christmas ps3 is where they money is at. Why else do they release gaming consoles before the holidays?[/quote]Because most stores make 90% of their yearly profit during the Christmas period.Free Market Economics? Supply & Demand? Ring any bells yet?[quote]Maybe I should get a Wii.[/quote]Buy the console which has the games you want to play not the other way around.I don't get what Sega's problem is here. They're saying they think the PS3 is expensive but then they're also saying they think it'll sell very well. If it's that big a deal why don't they not make any games for it but I guess that'd be too much like having the courage of your convictions.
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