Sony chief warns PS3 will be "expensive"

Tsunamii

Tsunamii

Full Audioholic
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

Takeereasy

Audioholic General
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

Tsunamii

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

Spiffyfast

Audioholic General
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

racquetman

Audioholic Chief
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

Takeereasy

Audioholic General
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

WmAx

Audioholic Samurai
Tsunamii said:
"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
 
J

JimSt

Audiophyte
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

Duffinator

Audioholic Field Marshall
alandamp said:
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

Takeereasy

Audioholic General
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

Tsunamii

Full Audioholic
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

furrycute

Banned
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

racquetman

Audioholic Chief
Duffinator said:
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

Duffinator

Audioholic Field Marshall
alandamp said:
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. :)
 
P

Privateer

Full Audioholic
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

Rob Babcock

Moderator
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.
 
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

Takeereasy

Audioholic General
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

Tsunamii

Full Audioholic
Takeereasy said:
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

BMXTRIX

Audioholic Warlord
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.
 
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