Japanese Retailers cutting ps3 system prices

[7th lutz]

http://www.411mania.com/games/news/49988/[PS3]-Japanese-Retailers-Cutting-PS3-Price.htm

Reports out of Japan have it that several stores are reducing the price of the PS3 by as much as 20% in hopes of drumming up some interest in the product. Word is that last week was the worst week of sales yet for the PS3 in Japan. Meanwhile, the Wii remains in heavy demand.

Don't expect any official price cut from Sony though. Speaking to Game Informer, SCEA boss Jack Tretton said, "No... There's a heck of a lot more under the hood and it costs us more money to make it."

I found it interesting to the fact the fact the basic cost $420 and the Premium costs $510 in united States dollars and that is cheaper then in the United States and that is before the retailers cutting the prices down along with the fact people claim graphics sells systems with the ps 3 having the best graphics.

If this isn't going to be a short term problem, then this could turn into what sega faced with the sega genesis in Japan.

[XYXZYZ]

If this isn't going to be a short term problem, then this could turn into what sega faced with the sega genesis in Japan.

Don't mean to take it off topic, but what happened to the Megadrive in Japan?

[jajaja]

I think its important to mention that every system (except GBA) in Japan last week sold less than usual, not just PS3.

http://www.joystiq.com/2007/01/19/ja...ay-blues-edit/

Its understandable that they cut the prices. One of the best games for PS3 so far is Resistance which is a FPS. FPS arent popular in Japan so what games are left and popular? Motorstom maybe, but thats pretty much it.

[Lemmi_Is_God]

maybe its just the christmas bills are hitting people now, so no money for fun things?

[Fighter17]

Don't mean to take it off topic, but what happened to the Megadrive in Japan?

The PC Engine (TG-16 in the states) being really popular and the hype of the Super Famicom made the Megadrive not popular. Also I guess poor marketing hurt the Megadrive in Japan as well.

How bad the sales of the Megadrive in Japan? Well Sega of America were making more money on the system than the Japanese.

[DeputyMoniker]

The PC Engine (TG-16 in the states) being really popular and the hype of the Super Famicom made the Megadrive not popular. Also I guess poor marketing hurt the Megadrive in Japan as well.

How bad the sales of the Megadrive in Japan? Well Sega of America were making more money on the system than the Japanese.

Are you saying the Genesis was more popular in the USA than the MegaDrive was in Japan? I'm missing the point. The Genesis was a very successful system. Your statement makes it sound like the Genesis was doing poorly but still better than the MegaDrive...if I'm reading your statement correctly.

EDIT: Sorry for helping derail your thread.

[TurboGenesis]

Are you saying the Genesis was more popular in the USA than the MegaDrive was in Japan? I'm missing the point. The Genesis was a very successful system. Your statement makes it sound like the Genesis was doing poorly but still better than the MegaDrive...if I'm reading your statement correctly.

EDIT: Sorry for helping derail your thread.

Yes, I believe he is saying the the Genesis was in fact more popular in the USA than the Mega Drive in Japan. The Mega Drive was a 3rd place system trailing the PC Engine and the Super Famicom.

In the USA the standings were different with the Genesis and the SNES battling for the top spot while the Turbo Grafx/Duo was fighting just to stay in the show.

My question is how does the PS3 price retailer price reduction reflect what happened to the Mega Drive? Did the Mega Drive go through a similar cycle early in its life?

[Canadian Psycho]

My question is how does the PS3 price retailer price reduction reflect what happened to the Mega Drive? Did the Mega Drive go through a similar cycle early in its life?

I don't know about the MD, but I seem to recall reading in some old EGMs (circa 1997) that the Nintendo 64 went through a similar phase early in its Japanese lifespan, but I might be wrong.

[Fighter17]

Are you saying the Genesis was more popular in the USA than the MegaDrive was in Japan? I'm missing the point. The Genesis was a very successful system. Your statement makes it sound like the Genesis was doing poorly but still better than the MegaDrive...if I'm reading your statement correctly.

EDIT: Sorry for helping derail your thread.

Yeah, the Genesis was more popular in the US than Japan.

[XYXZYZ]

SO... Retailers are cutting PS3 prices in Japan, eh? Do you think it will actually drum up interest in the PS3 as planned? (I started derailing this thread, so I'll get it back on track)

[jcalder8]

SO... Retailers are cutting PS3 prices in Japan, eh? Do you think it will actually drum up interest in the PS3 as planned? (I started derailing this thread, so I'll get it back on track)

Nope not a chance, I read earlier today that Gears of War is selling out in Japan, when a shooter is selling out and they can't sell the PS3, on sale none the less, you know Sony is in trouble!

[jajaja]

Speaking of price cuts, there are no plans (from Sony that is) to cut the price before 2008.

http://www.engadget.com/2007/01/23/n...-ps3-sez-sony/

Makes sense tho, if they went out and said they would cut the price in 6 months, more people would wait. Also it is much more expencive to produce the PS3, like $800 just for the parts and then the developmentcosts and manufacturing costs arent calculated in.

This doesnt mean that there wont be price cuts at all. As this topic is actually about, japanese retailers have already dropped the price with 20% and arent there some PS2 trade-in deals as well?

[veronica_marsfan]

Japan have it that several stores are reducing the price of the PS3 by as much as 20%

Wouldn't surprise me to walk into Target or Walmart & see "20% off" during the month of February. Stores are not going to just let these PS3 Boxes clutter-up their inventory.

[jajaja]

Well.. Virtua Fighter 5 is out in about 2 weeks. Lets see if that changes anything

[c0ldb33r]

Well.. Virtua Fighter 5 is out in about 2 weeks. Lets see if that changes anything

Except that its for 360 too

[Slate]

Wouldn't surprise me to walk into Target or Walmart & see "20% off" during the month of February. Stores are not going to just let these PS3 Boxes clutter-up their inventory.

They'd send them back to sony before doing that.

[agbulls]

They'd send them back to sony before doing that.

That is just not going to happen. You really think major retailers are going to send back Playstations? They'll start moving---the price is extremely prohibitive but it WILL happen. Slow and steady wins the race...

[jajaja]

Except that its for 360 too

Well.. maybe, but its still ½ year to go for 360. 360 is already selling fairly good tho.

[Bronty-2]

Nope not a chance, I read earlier today that Gears of War is selling out in Japan, when a shooter is selling out and they can't sell the PS3, on sale none the less, you know Sony is in trouble!

And how many copies of gears of war do you think were even on Japanese retail shelves? Ten? It's not hard to sell out when you don't order much. And why would you order much when no one in the country owns a 360?

[Bronty-2]

That is just not going to happen. You really think major retailers are going to send back Playstations? They'll start moving---the price is extremely prohibitive but it WILL happen. Slow and steady wins the race...

agreed that I doubt they will send them back but they could reduce future orders, anyway.

As for 20% off sales to clear up inventory, not a freaking chance. The retailers don't to my knowledge even make 20% on the hardware so they'd be taking a loss to do that. Not going to happen. Most products have higher margins so they can cut into the selling price if need be to reduce inventory, but with the low margins on hardware, I'm sure they would indeed rather send them back than take a loss.

Why lose money when you can just get a refund instead? (assuming they can return to manufacturer).