Posted on 03/25/2007 7:47:23 PM PDT by JohnSheppard
In an interview with Martin Matt, from the popular GameIndustry.biz site, Sony UK managing director Ray Maguire calls America "a land of cheap people", while the UK is “a little island where rent and rates are at an absolute premium”.
When asked about the high price of the PS3 in PAL areas, especially in the UK (where Sony’s console is currently being sold for GBP 425- US $840- more expensive than anywhere in Europe) this is what Ray Maguire had to say:
“If you take what's considered to be the most expensive and the least expensive – consider the US with its massive land and cheap people. Then you look at the UK – a little island where rent and rates are at an absolute premium, and the cost of people is a lot more. The cost of retail is vastly more in the UK than it is in the US and that's before you even stop to consider the US doesn't have VAT at RRP, they put a small amount on afterwards. Whereas, we get stung by 17.5 per cent. And pity the poor Irish and places like Sweden.
(Excerpt) Read more at playfuls.com ...
Sony probably doesn't like that a Wii plus a 360 costs around the same as a PS3. Makes the second-place decision easy.
In terms of firepower, Sony has the bigger guns here long term, with a huge back catalogue of compatibility
It's not even that good. The latest hardware revision to the PS3 replaced the PS2 chip in it with software emulation. As a result, a bunch of PS2 titles won't play on the new PS3s.
I took this as a compliment.
Even if 25% won't play, you still have a huge back catalogue... Sony has to drop its price, its trying to play justification not to left right and center, but it knows it has too, and it will.... its just a matter of how long they will wait before they do it.
If they wait too long they will be screwed, they can't surive losing 3rd party support. Unlike Nintendo, Sony cannot rely on in house characters and game development to cary them through a poor console installed base. They are already losing exclusive titles.... They cannot afford to lose 3rd party support entirely.
With the costs to develop games on this Gen, particularly the 360 and PS3 with their insane graphics and such, developers will pass over a system who's installed base is too small to justify sales... or if they do, they will be lousy ports.
I think in the long run Sony will be fine, IF they stop being arrogant and deal with the obvious issue in front of them... which there are many, but the single biggest is simply COST.
When I can find your New system on the shelves in stock at Target 2 days before Christmas, and it was just released about a month ago... you have trouble... (true story by the way).
"Must Have" games will drive sales, to a point, but $600-$700 a pop is a pretty big hit for most of your target audience Sony. And why you would decide to stick with the most uncofortable controller ever designed for a 3rd generation is beyond me. Cube hands down had the most ergonomic controller bar none of last generation.
Sony needs to get their system down to the 300-400 range quickly, or they will risk serious long term viability of the console. The emulation of PS2 support is probably just one of many cost cuts you will see Sony make on its console... It can put on the arrogant face in front of the press, but its pretty obvious they are in trouble in the short term with this beast, and need to do something or they will wind up in long term trouble as well.
I was at the Post Exchange at Fort Bliss. They have a battalion of German soldiers there. I was behind a German while he was buying two toddler girl bikes. As I have twins and have to buy two of everything, I asked if he had twins. He said, "No, I am buying them for a friend children back in Germany."
The price difference must be huge to buy the bikes here and then mail back to Germany and it still cost less.
The sad thing is that Sony will not be cutting the price of the system with that cost saver. It'll just cut their per-unit loss by a bit.
I'm pretty much done with the arrogance of Sony. I'll keep being entertained with my Wii. I've bought an extra set of controllers, some Wii points and four games, and I'm still not up to the price of a bare PS3 yet.
Oh I'm not arguing for buying a PS3, I'm just saying I think at end of day they will likely wind up #2 installed.
I don't even own a PS2.... Hell didn't own a game console at all since an old NES as a kid, until buying a PS1 in 02. Got a surprise GC as a Christmas gift in 05.. and frankly I've enjoyed it, most games I buy are used, for a few bucks, and they are fun, not generally centered around you killing things in first person, and I don't have to worry too much about what my kid brings home to play on it.
When the PS2 gets to $99 new, I may finally break down and buy one, and then go buy the "BEST GAMES" for it, used like I did with the CUBE.
In fact, the Wii is the first time I've been remotely inclined to buy a console anywhere near its release date, and honestly, its been a great purchase. Play all our cube stuff, and there are still pleanty of greate Cube games I haven't picked up yet.. Just got Pikmin and Pikmin2 for a few bucks each last week, and enjoyed them.
Zelda and Wario are the only Wii specific games I've bought, and probably won't buy any more for a while, probably Elebits and Ultimate Alliance and Excite truck when the price comes down or I can pick them up used... Mario and Metroid are the only ones I'll probably pick up (like Zelda) when they are released. I'll almost certainly get Wiiplay, to add another controller to our set, and pick up another nunchuck and finally pick up one more to have a full 4 person set of controllers, just 2 right now.
In fact today I finally broke down and bought a Wavebird, so I can play my cube games wirelessly.
I have pleanty of VC games yet to play, Mario 64 I will eventually DL and play as well as OCARA in Time... which I have never played... etc etc etc.
I don't play games that much, a few hours a week... so I don't need tons of games to stay happy. A new game may take me weeks or months to finally finish. I am definately in the "casual" gamer crowd. And my son frankly is perfectly happy to make Mii's and play Wii Sports for hours when he's allowed to play... though he has become thoroughly engaged in Pikmin since I bought them... definately worth the $$ to pick em up used if you can find em.
Hell if I was Nintendo, I'd seriously think of retrofitting some of the great cube games to work with the Wii controller. Development costs would be minimal, and could release them at $20 or $30 a pop and guarantee you'd sell em.
"The price difference must be huge..."
It is, if Europeans are traveling to America to go shopping. I'm proud to be an American.
That is what I mean. The wider audience thinks that it is overpriced.
Personally, I think the PS3 is too far ahead of its time.
Agree with this and the rest of what you wrote.
They should have taken notice of what other manufacturers were doing. 360 brought the on-line play, Wii brought a whole new way to play besides button mashing. Both of these are not new new concepts but they are presented in a new and exciting way. The PS3 just looks good. Technologically it is a nice piece of equipment but for what it brings is not playing well in Peoria. Great graphics are nice, but not $500.00 smackers nice.
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