September 20, 2007


Sony's Plan to Cut PS3 Costs: By letting Toshiba make the game console's chip, Sony can focus on core operations—and boosting PlayStation sales (Kenji Hall, 9/19/07, Business Week)

In the video-game industry, it's the oldest trick in the book. To keep a console from collecting dust on store shelves, game console makers will periodically cut prices and watch as buyers flock. Since the PlayStation 3's global launch last November, Sony (SNE) has already dropped the price of its two models, originally $599 and $499, by $100 apiece. But with PS3 sales growing at a slower-than-expected pace and trailing Microsoft's (MSFT) Xbox 360 and Nintendo's Wii, Sony could be mulling over another price reduction in the coming weeks. Some observers think an announcement might come as soon as this week's Tokyo Game Show.

Posted by Orrin Judd at September 20, 2007 10:59 AM

And, as far as I can tell, such price drops are only getting the thing down to what the price should have been in the first place. It's not the chips that are keeping people like me from buying. The Cell is considered by many to be the most advanced. It's Sony's insistance on pushing their newest protocol/standard/product, this time in the form of BlueRay.

I look at a PS3 and see it has a BlueRay drive. I look at a home entertainment BlueRay player and I see that it cost $1000 at initial release, and still costs a couple hundred. I have to wonder, if they just stuck in a DVD drive, how much less expensive would the game console be? Because that's what I'm looking to buy, a game console. Not some multimedia centerpiece that costs lots more while only providing a very small amount of new functionality.

Posted by: Jay at September 20, 2007 11:26 AM

My brother bought one and it's mostly been collecting dust since there's so few decent games out.

I might get a 360 myself if the breakdowns stop occurring. Wii is looking attractive but it's so underpowered.

Posted by: Ali Choudhury at September 20, 2007 12:15 PM

Speaking of "Nothing costs more than it used to," the exception that proves the rule is, of course, anything the government runs or allows a monopoly, starting with public education and Major League Baseball.

Posted by: Brad at September 20, 2007 1:03 PM

In which market is major league baseball a monopoly?

Posted by: Ibid at September 20, 2007 1:16 PM

MLB is the only major league sport to have an anti-trust exemption. ESPN discusses it here.

Posted by: Brad at September 20, 2007 2:29 PM

Yes, I know. And it's completely irrelevant to the question of monopoly.

So, I ask you again: in which market is major league baseball a monopoly?

Posted by: Ibid at September 20, 2007 4:59 PM

"nothing costs more..."

The American League East Championship

Posted by: h-man at September 20, 2007 5:06 PM