Sony chief warns PS3 will be "expensive"

[Tsunamii]

By Jack Schofield / Gaming 03:00pm

Sony has taken a big risk by choosing to use advanced technologies in the PlayStation 3 that are either unproven or not ready for mass market mass production. Sony Computer Entertainment boss Ken Kuturagi has now admitted that the PS3 will be expensive -- and he still hasn't announced a ship date. According to a GameSpot.com report on CNet, Kuturagi said:

"We're looking at a life cycle of 10 years with the PlayStation 3. We're currently shifting from standard TVs to HD TVs," said Kutaragi. "But in the next couple of years, most flat-panel TVs will be full HD. We're releasing the PS3 with full HD features from the start so that consumers won't have to buy another version of the console in the future. For the same reason, we're using Blu-ray as the PS3's disc format."

"I'm aware that with all these technologies, the PS3 can't be offered at a price that's targeted towards households. I think everyone can still buy it if they wanted to," said Kutaragi to a mostly Japanese crowd. "But we're aiming for consumers throughout the world. So we're going to have to do our best (in containing the price)."

Then Kutaragi issued a somewhat ominous warning. "I'm not going to reveal its price today. I'm going to only say that it'll be expensive," he stated.

Comment: The idea that the PS3 is going to last 10 years as a front-line machine is wishful thinking: it's never going to happen. However, you can see the problem of trying to develop a PS4 when it's not clear if the Cell chip in the PS3 has a future, or whether it will go the way of the Inmos Transputer....
Comments

Link
http://blogs.guardian.co.uk/online/archives/2005/07/25/sony_chief_warns_ps3_will_be_expensive.html

[Takeereasy]

Neat post Tsunami. Ah leave it to sony to charge ahead wth a format that they aren't sure will be adopted, untested and unproven components, technology that far oupaces most households, and an outrageous price that consumers can't afford. Seems like a can't miss product.

[Tsunamii]

IMHO they will be dead in the water if they go with this Business plan.

[Spiffyfast]

I can't wait for the Xbox 360 to come out before the PS3, hopefully for this christmas is what I've heard, and be cheaper, its going to destroy sony. I know the Xbox wont be "cheap" but when Sony says this, "I'm aware that with all these technologies, the PS3 can't be offered at a price that's targeted towards households. I think everyone can still buy it if they wanted to", this thing must be outrageous. What did the PS2 start out at $400 or $500 and that was a few years ago, and they never said it would be out of the reach of households. And it is going to be released with blu-ray a format that hasn't even been adopted yet, this is rediculous. I have a feeling sony is going to be hurting in about a year.

[racquetman]

Considering that a stand-alone Blu-ray player is probably going to start at $1000 minimum, this announcement shouldn't be that shocking to anyone. How would you justify the price of a Blu-ray player if you were selling a PS3 with the same technology and more for half the price?

For all of those posters out there that thought Blu-ray was going to crush HD-DVD, what do you think now? I'm sure the HD-DVD camp saw this coming, and wasn't willing to take the same kind of risk with the Xbox 360.

[Takeereasy]

I'm also curious about this. If Sony is not targeting this product to households, who are they targeting it to? Really, for once I'm not being facetious, I'm generally curious. Would it be hotel chains, or arcades or what. I'm a little confused. I thought the purpose of a gaming system was to sell a billion of them to people in homes and make as much as possible that way. Maybe Sony has a new market, or is there some segment of the market I'm not seeing? There are not enough rich people to make this fly. If the Xbox 360 hits the streets with a much cheeper pricetag it will kill the Sony IMO.

[WmAx]

"I'm aware that with all these technologies, the PS3 can't be offered at a price that's targeted towards households.

I did not research this to see if the report was accurate, but just let me say that I can not be suprised since Sony has a long-standing [1][2][3][4] tradition of making [what seems to be by sideline observers] retarded decisions. That Sony would choose to release a product intended for[and dependant upon] widespread household use that is stated to be too expensive for general households, is absurd, at least in my opinion.

-Chris

Note: examples given below based on casual observation.

[1] Mini-Disc format: ignored the potential to use MD for cheap/efficient data storage on computers -- could have dominated considering the price/data density at the time several years ago. Also, inclusion of SMCS DRM even makes the system worthless for reverse data transfer/storage of it's own proprietary music files[Atrac].

[2] Refusal to introduce competitive MP3 player products for the first few years of it's booming introduction, thus shrinking their own portable audio market share in an act that seems like pure stupidity.

[3] Introduction of SACD, a system that is believed by many experts to be technically inferior[and SACD is not proven to have any useful advantages by Sony] to the conventional PCM technologies, and requires expensive retrofitting of studios to natively use the SACD[DSD] system for production. Also, SACD is introduced as new and better, but is in many ways a downgrade to the existing format: it lacks critical advantages of CD[widely usable data that is rippable and exportable to external standard DACs].

[4] Claiming that PSP is the "IPOD for movies", and that they intend to target this in the market. However, PSP lacks any rewritable drive or media to transfer files in this manner. A very expensive large size Sony Memory Stick Duo would be required, or a special and seperate UMD[the proprietary media used by Sony in the PSP] writer would be required. IMO, Sony could have simply used mini DVD format instead of a pointless additional proprietary format[UMD], and used a DVD writer/reader in the PSP, since this[DVD-R] is a wide spread, low cost and already existing technology. In addition to making the "IPOD for movies" thing more likely, the PSP would have been much more useful as a MP3 or other media device right out of the box.

-Chris

[JimSt]

I honestly don't mind them making the machine expensive. What bugs me is that they're making a high end machine that will all but replace my HTPC, and stuffing it in an ugly little plastic box.

The people who are going to buy the PS3 are going to be the people with a quality HDTV or projector and most likely a decent audio system to support it. Actually, the kind of people who read this site! Who's going to want an ugly little hunk of cheap Japanese polymer in their rack?

Give me a 2 ru metal case with a milled aluminum faceplate and I'll pay $1200. At $500, I might consider replacing the PS2 that's currently hiding inside of a drawer. Any more than that, and it won't find it's way into my house.

[Duffinator]

For all of those posters out there that thought Blu-ray was going to crush HD-DVD, what do you think now? I'm sure the HD-DVD camp saw this coming, and wasn't willing to take the same kind of risk with the Xbox 360.Like I've said before just because one technology is better than another doesn't mean it's going to be the winning technology. I hope BD DVD wins but I'm not betting on it. :eek: Either way I'm ready for a format of HD DVD so bring it on.

[Takeereasy]

The people who are going to buy the PS3 are going to be the people with a quality HDTV or projector and most likely a decent audio system to support it.

I agree with your statement here, and that is the biggest problem I see for Sony. Simply by going this route Sony Eliminates at least 90% of the population. I'd say it's closr to 95% at least but 90% seems really safe. How many people do you know that own a half decent Ht or music setup. I only know 3 or 4 guys besides me. Only 2 of them play video games at all. So out of the 30 or so people that I know reasonably well only one in 15 has a setup to take advantage of the sony, and I think that only one of those two would be willing to risk what will no doubt be at least $2k Cad (if the article is accurate) on a piece of untested equipment. Out of that same number at least 15 of the guys have xboxes or ps2. So my demographic is exaactly what they want, and only one in 30 of me will drop the coin. Seems retarded to me.

[Tsunamii]

The 10 year life span blows me away. If Micro$oft came out with new equipment in 5 years it would no doubt blow the doors off of any next gen. Its a great pitch to say it might be a little more but it will last. The problem is it wont. Both PS2 and Xbox players notice that the hardware is failing on allot of boxes, from optics to power supplies. Again 10 years??? I just don't see it happening. Hey I want to own them both but ill pass if Sony's product is though the roof.

[furrycute]

The minidisc format is a smaller version of optical disc, which is a quite popular data storage/writable format in Japan. But it never got anywhere here in the States. I still have an optical writer and a couple of catridges. Worked with my old Mac. But haven't used it in years.


The DVD-RAM is an extension of the optical disc format. But that got nowhere as well.

[racquetman]

Like I've said before just because one technology is better than another doesn't mean it's going to be the winning technology. I hope BD DVD wins but I'm not betting on it. :eek: Either way I'm ready for a format of HD DVD so bring it on.

I'm not sure what your point is Duffinator? I didn't say anything about one technology being better than the other. In fact, I've said the exact same thing you said in many posts.

In recent posts many have said that Blu-ray will kill HD-DVD due to the fact that the PS3 will put a Blu-ray player in millions of homes. I was just wondering if anyone has changed their mind on this opinion in light of this announcement?

I also don't care who wins. Just give me some HD movies!!!

[Duffinator]

I'm not sure what your point is Duffinator? I didn't say anything about one technology being better than the other. In fact, I've said the exact same thing you said in many posts.

In recent posts many have said that Blu-ray will kill HD-DVD due to the fact that the PS3 will put a Blu-ray player in millions of homes. I was just wondering if anyone has changed their mind on this opinion in light of this announcement?

I also don't care who wins. Just give me some HD movies!!!I was agreeing with you. :)

[Privateer]

If this is true the Xbox360 will out sell the PS3 100 to 1, they were saying that the Xbox360 is going to be $299US on the release.

[Rob Babcock]

That Xbox pricing is, as far as I know, just idle speculation. MS hasn't said a word about the price, on the record, that I've heard. I'll certainly be buying a PS3, and I fully expect the machine will be a big hit. I've learned not to put too much stock internet rumors and innuendo.

[Clint DeBoer]

Something everyone forgets is that Microsoft is willing to lose money or at least just break even on sales in order to grab marketshare - especially if they can put someone out of business in the process.

If I didn't know any better I'd say that initial report was authored by Microsoft; it is so ridiculous and short-sighted.

I think Sony may be in a state of confusion and they are scrambling to try and prep their stockholders from panicking when they are summarily "leapfrogged" by the Xbox 360 upon its release (in theory) this Christmas.

[Takeereasy]

Does anyone think that the Xbox will launch on time? Look at how long it took them to launch Halo2. How many times was that game pushed back? Also I'm sure MS wants to avoid any more hardware problems. Flaming powercord anyone?

[Tsunamii]

Does anyone think that the Xbox will launch on time? Look at how long it took them to launch Halo2. How many times was that game pushed back? Also I'm sure MS wants to avoid any more hardware problems. Flaming powercord anyone?

Micro$oft missed one holliday season and took it in the shorts. They will not make that mistake again. It may not come out for Thanksgiving but before Xmas is a sure bet.

[BMXTRIX]

It sounds like a crap statement to me...

http://www.gamespot.com/news/2005/07/01/news_6128501.html

Everything I have heard puts the PS3 under 500 - and possibly closer to 400 as Sony takes about a $100+ loss on each game console sold. The full article from Merill Lynch I can't find right now, but it was something like a billion dollar loss for Sony the first year.

But - this isn't about just video games for them. Including Blu-Ray in the PS3 console gives them a huge leapfrog advantage in a format war. If the PS3 is out at around $400.00 I have no doubt that within one month... or maybe even one day, Blu-Ray will suddenly be in 1 million homes. This doesn't just give the PS3 great future sales of games, but it bolsters the push by Sony for Blu-Ray to be the dominating HD standard.

The number of homes with HD televisions is not huge yet, but those with HD displays are the same homes that will be buying the PS3 on day one. I think the better question is, how many non-HD televisions are available in Best Buy/CC these days? Not a lot. It is a risk that Sony is taking for sure... But, do not underestimate what a parent will do to shut up a whiny kid.

And don't underestimate how hard a kid will work to save money to buy something that he really wants.

I will take bets on a complete sell out of the PS3 on opening day in stores. If it is 2 million units... that's a record for a new technology breaking into homes for sure.

[Tsunamii]

I think the problem with the gamespot rational as why it will not be expensive does not hold water. The article you are sighting was published before Ken's statement.

""I'm aware that with all these technologies, the PS3 can't be offered at a price that's targeted towards households."... How will blueray be in all of these homes if it is not even targeting a mass audience?
That being said Ken's statement just does not make since, why would they not market to the household average joe user? Though he did say it.
After forking over $500 for the x360 (with a few games etc), most parents are going to be very wary of putting up allot more for another game system 6-9 months later.
Hey I want both of them, so I hope the price is not through the roof. Why Sony would try and scare people off I just can figure out. They are going to have to come out with firm pricing before the launch of the X360 to stay in the game and not have people spooked off. IMHO

[Spiffyfast]

Something everyone forgets is that Microsoft is willing to lose money or at least just break even on sales in order to grab marketshare - especially if they can put someone out of business in the process.

If I didn't know any better I'd say that initial report was authored by Microsoft; it is so ridiculous and short-sighted.

I think Sony may be in a state of confusion and they are scrambling to try and prep their stockholders from panicking when they are summarily "leapfrogged" by the Xbox 360 upon its release (in theory) this Christmas.

Clint's exactly right, even on the original Xbox I read somewhere that Microsoft loses something like $80 on every one sold. They do this to gain marketshare and get the Microsoft name into more and more homes and dont really care about the profit on the console, they get a portion of all the money for each game sold and thats where the real money is, how many ppl have one xbox, but 20 games for it?

[no man]

Sony's made some really retarded decisions, most of you agree with this, and the 10 year thing....no, not going to happen. They're using new untested technology thats probably going to skrew it up worse than xbox when it first came out (crashing and freezing all the time). so they're not going to target the average household...by far their most stupid decision..ever.

who's gonna buy it? a few people who scrapped enough money up and then what..the xbox 360 is gonna trample all over the ps3. some of the features of the ps3 are really pointless, like how it can support 2 1018p tv's..on average how many people own two 1018p tv's and have them in the same room...not many. the controllers really push me away from it...they're god damn boomerangs..

but what about the Nintendo Revolution?? will it be a silent killer and destroy both of the systems? no one talks about it (mostly due to the lack of information) but so far all i know is that its going to run on normal sized disks and its going to have a triple core processor...if anyone can give me more deets on it..please do

[gene]

I heard the new Nintendo system will allow you to download games off the internet for all Nintendo systems for as little as $10 a pop. If thats true, I think I will be getting one myself. My only problem is when will I find time to actually play them :rolleyes:

[no man]

I heard the new Nintendo system will allow you to download games off the internet for all Nintendo systems for as little as $10 a pop. If thats true, I think I will be getting one myself. My only problem is when will I find time to actually play them :rolleyes:

yea you can but they're only letting you download snes and some n64 games, some for free
ps3'll let you download some ps1 games but for a price and the selection is small

[no man]

honestly, how many of you truely feel that the ps3 will be more popular than the xbox 360, and that it will out sell it?

[Jedi2016]

honestly, how many of you truely feel that the ps3 will be more popular than the xbox 360, and that it will out sell it?

*raises hand* I do. Playstation has dominated for ten years straight. There's no reason whatsoever to believe that they won't continue to do the same.

It's quite obvious that you maintain some sort of bitter hatred of Sony or Playstation or both, but the simple fact is that PS1 and PS2 dominated not because of the technology, but because of the games. And contrary to what some people think, PS3 will still have the games. Only this time, it'll have the games and the technology. Seems a sure way to victory as far as I can see.

So, why do you think that Sony won't continue with tradition? The Xbox already failed to capture the market, what makes you so sure they'll be able to do it this time? Last time, at least they had the more powerful hardware.. this time, even that advantage is gone. The only advantage they have at the moment is that they're launching first. Which is meaningless, really. PS1 and PS2 weren't first to market, either. Sega tried going up against Sony two generations in a row, and look where they are now. Do you really think Microsoft will be happy being second-best, losing money hand over fist generation after generation? I predict that, if Xbox360 doesn't dominate this generation, if they again come in second, and if they again show nothing but red on the quarterly reports, that Microsoft will bow out of the hardware market altogether.

[Rob Babcock]

I heard the new Nintendo system will allow you to download games off the internet for all Nintendo systems for as little as $10 a pop. If thats true, I think I will be getting one myself. My only problem is when will I find time to actually play them :rolleyes:

As little as $10 a pop?! :eek: I think that price is ludicrous for ancient games that raked in their billions a decade ago. I think even charging for them is almost too much- I'd rather see a subscription, or even a good sized database of games served gratis. I don't begrudge a company making a buck, but does anyone remember back when consoles actually came with a game or two? Since those games are essentially "bought and paid for" many times over, why not make them available as an added value for what looks to be a technically very inferior console, vs the Sony & MS machines, instead of another feeble grab for the cash? That would get me to buy a Revolution.

[Duffinator]

*raises hand* I do. Playstation has dominated for ten years straight. There's no reason whatsoever to believe that they won't continue to do the same.

It's quite obvious that you maintain some sort of bitter hatred of Sony or Playstation or both, but the simple fact is that PS1 and PS2 dominated not because of the technology, but because of the games. And contrary to what some people think, PS3 will still have the games. Only this time, it'll have the games and the technology. Seems a sure way to victory as far as I can see.

So, why do you think that Sony won't continue with tradition? The Xbox already failed to capture the market, what makes you so sure they'll be able to do it this time? Last time, at least they had the more powerful hardware.. this time, even that advantage is gone. The only advantage they have at the moment is that they're launching first. Which is meaningless, really. PS1 and PS2 weren't first to market, either. Sega tried going up against Sony two generations in a row, and look where they are now. Do you really think Microsoft will be happy being second-best, losing money hand over fist generation after generation? I predict that, if Xbox360 doesn't dominate this generation, if they again come in second, and if they again show nothing but red on the quarterly reports, that Microsoft will bow out of the hardware market altogether.Your first comment can easily be applied to Sony's dominance in the TV market, something they no longer dominate, along with a host of other products. I don't think it's a sure bet by any stretch. So their tradition has been dominate a market and let it slip by making poor marketing decisions and not staying up with technology. Will that apply to the PS3? Only time will tell but the X Box did take market share from someone and certainly many who purchased the X Box would have purchased a PS2 had the X Box not been around.

[Rob Babcock]

The figures show that most of the market gains made by the Xbox were at the expense of Nintendo, not Sony. MS has gained some ground lately, and the Cube is pretty much on the ropes.

[no man]

i don't have a bitter hatred for sony, i just favor xbox 360 over ps3, i dont mind ps2, although i prefer xbox over it because of their game selection and controllers.

[no man]

The figures show that most of the market gains made by the Xbox were at the expense of Nintendo, not Sony. MS has gained some ground lately, and the Cube is pretty much on the ropes.

gamecube has failed out right and from the start. they made too many promises, the system is capable but nintendo failed to act. gamecube has an online capability, but there are only four or five games that can be played online, and you have to buy the online things seperatly from the system.

[no man]

i think sony and ms gained at the loss of nintendo, agh and i can only sell my cube for $5..how unfair..