Published on September 21st, 2012 | by Cameron Woolsey
Sony: No Price Drop for Older Model PS3s
The PlayStation 3 is getting a smaller-er, spacier, slimmer-er version, Sony announced Tuesday.
However, non-PS3 owners shouldn’t get excited over the idea of a price drop for the older models, because Sony Vice President John Koller says that is just not going to happen.
Speaking with tech site Engadget, Koller explained Sony’s position on the company’s “no price drop for you” initiative:
“When you look at some of the earlier chassis, and the really early adopters — the 20GB, and the 60GB — that consumer had a choice. They could either go out and buy another hard drive — and it’s an easy install, so we make it easy for the consumer if they want to take a hard drive off the shelf and plug it in, they can do that. They had a choice of doing that, or purchasing another PlayStation 3. And what’s been happening is we’re seeing a lot of adoption of second consoles in-house,” Koller says.
Basically, Koller is saying that most consumers who want more storage on their console will opt for a new unit with a bigger hard drive instead of buying and installing a new drive.
This is a poor strategy in my opinion. Not only will Sony keep late adopters hanging, but this could be a critical misstep on the company’s part. Let me explain: the Wii U is set to launch on Nov. 18. Sony can easily shave off some Wii U sales by offering a cheaper PS3 unit and bolster the deal with some extra content or other promotional materials (and at the same time clearing shelf space for the new unit). Which leads us to Koller’s next quote:
“There’s no price drop formally, but the thing that’s been happening in the market over the last year or so is that there’s been so many retail price promotions, and so many different gift card offers and all those things, being done by all of us (Microsoft, Nintendo and Sony), that we’ve heard from our consumer, ‘Enough with all these weird price moves. What we really want is content and games and value,'” Koller says.
Now, being a consumer myself, I don’t believe I’d turn down a price drop for a console. In this economy, turning down any price cut, especially for expensive electronics, is just nonsense. In the end, Koller just offers a long, complex way of telling us, “No.” Which he actually does do near the end of the interview, saying, “kind of a long way of saying ‘no, no formal price drop.'”
Perhaps I just can’t see it from his angle. Maybe there’s an economics wiz who can turn me around, but I just don’t see this working out.
What do you think about Sony’s “no price drop” gamble?