Why A PS3 Price Drop is Not Coming
May 29, 2007The launch of the Playstation 3 (PS3) in November of 2006 was a lackluster effort for Sony Computer Entertainment (SCE) While the initial units sold out entirely, it wasn’t long before the console was readily available on store shelves, and not being sold. As of this writing, the Playstation 3 has sold approximately 3.2 million units since the November launch. While 3.2 million units sold seems to be a lot, the rivaling Nintendo Wii system has sold a staggering 7.3 million units in the same time-frame, and Microsoft’s X-Box 360 has sold nearly eleven million consoles in 18 months. The sales results for Sony are, without a doubt, appalling. The install base for Sony’s Playstation hardware is quite limited, despite launching during the holiday season. The problem with it was that the amount of physical games that people would buy the system for was insufficient. Resistance: Fall of Man lead the software launch as the must-have-game for the Playstation 3, already a disheartening $600.00. Obviously, one game can’t push consoles to the point of breaking records or meeting a satisfactory sales quota, so Sony relied heavily on its promises of phenomenal features and titillating titles to come.
Killzone 2, the sequel to the underwhelming Playstation 2 First-Person-Shooter (FPS), was showcased at the 2005 Electronic Entertainment Expo (E3) and stunned the press and gamers alike with the demonstration video that was played to coincide with the titanic announcement. The visuals left watchers in awe as the environments and characters shown were stupendously realistic - however, skeptics began to pick apart the demonstration, claiming it was a pre-rendered video, and not in fact gameplay which Sony had claimed. While it’s yet to be confirmed, many media sources have hinted heavily that the video was indeed, a fake. This has left many Playstation owners and skeptics wondering what Guerilla (Killzone’s developer) can accomplish and present at this years down-sized E3 media summit. Killzone 2, should it meet the high expectations of anxious Playstation owners, could be Sony’s stepping stone of the year to get it above the competition.
Killzone 2 (Above)
Now what about that ghastly price tag?
Hypothetically, let’s say that Killzone 2 is a horrid flop - the game sells horrifically, slandering Sony and Guerilla’s names across the industry spectrum. Sony could theoretically drop the gargantuan cost of the system (A gaming console and Blu Ray Disc player) to induce sales to outside consumers who might not have even looked in Sony’s direction. However, SCE’s amount of Triple-A software titles coming in the next 12 months is so bewilderingly breathtaking that consumers will think twice about purchasing the behemoth machine.
Uncharted: Drake’s Fortune follows an adventuring couple in search of a mystical treasure. Taking elements from huge name titles like Tomb Raider, Prince of Persia, and Gears of War, Uncharted is a very promising looking game. Visually astounding in its models and character animation, this title looks to easily impress and sell a boatload of units. It’s a Sony exclusive game, so it could easily push consoles along with its massive sales. Slated for a Fall ‘07 release, PS3 gamers have at least one must-have title this year.
Uncharted: Drake’s Fortune (Above)
Along with Uncharted, Sony presents another exclusive game for 2007, Heavenly Sword. The game seems to be a bizarre derivative of God of War with a female character in an adventure/arena style battling system. The developers are working with WETA, the company most would find to be affiliated with the CG imagery found in King Kong, and Lord of the Rings, so the animation and general graphics are gorgeous and are some of the best to be seen on any console, ever. The game is more of a mystery, so it’s all that more appealing to an anticipator.
Further off are the Aces-In-The-Hole. Sony’s surefire sellers: Final Fantasy XIII and Metal Gear Solid 4: Guns of the Patriots. While FFXIII is the further off of the two titles, Kojima Productions, the company behind MGS4 has stated that the game will come out in 2007 - rumors speculate that the long running, predominantly Sony smash hit franchise, will launch in the ‘fiscal year’ and to expect it closer to March of 2008. No matter when Metal Gear Solid launches, it works out to Sony’s advantage. With the amount of AAA titles coming out before Christmas, such as Heavenly Sword, Uncharted, Ratchet and Clank Future: Tools of Destruction (Exclusive to the PS3) Assassins Creed, Grand Theft Auto IV, and Ninja Gaiden (Cross Platform) Sony has no reason to lower the price of its console. The amount of sales these games can generate around the holiday season leave Sony with no justifiable reason to drop the price.
Metal Gear Solid 4: Guns of the Patriots (Above)
Consumers who want these games will buy the PS3 despite its price. Gamers are a very passionate crowd and invest a large amount of money in the video game industry, so Sony can expect that the fall and winter seasons will be good to them regarding console and software sales. If MGS4 does launch in ‘07, Sony can count on an asinine amount of console sales to coincide with the launch of said game. If not, and MGS4 launches in March of 2008, then Sony can afford to wait until the sales begin to drop after the public release of the game. If the game sells well until holiday ‘08, why would they shrink the console price if it’s still selling well? The attachment rate of MGS games to PS3 consoles will be a significant number, guaranteed to be well over the fifty percent margin. It’s a huge game that will help Sony sell consoles. If it doesn’t come out, however, there is no game big enough to fight Microsoft’s juggernaut, Halo 3.
Halo 3 (Above)
No Playstation game has the amplitude that Halo has like Metal Gear , or Final Fantasy does. Can Sony afford to lose out to Microsoft this holiday season because of Microsoft’s exclusive FPS titan? Halo will sell 360’s this September, and further in to 2008, so if Sony doesn’t have Metal Gear to combat against a release of such size and importance, they could really be losing out on a lot of numbers. This will be the second holiday season that Sony will lose out to Microsoft, and whether or not FFXIII and Metal Gear Solid 4 come out in 08, or 07, will really be a beneficial or detrimental factor to the amount of hardware Sony will sell. Nintendo has promised enough big name titles for holidays, and has sold enough units in the last six months that they aren’t even on the other two big companies radar.
It’s really a competition between Sony and Microsoft, and while the PS3 has a shining future, Microsoft can put it in the shade with one title if Sony can’t compete against it. Uncharted and Ratchet and Clank are a couple of Sony’s few big titles this year, as mentioned. While these games are big, they won’t sell hardware in the capacity that Halo 3 will sell 360 hardware. They’ll simply satisfy current owners, and have part in a smaller boost in sales.
These consumers will slowly begin to sing praises about the games, and word of mouth is a powerful and easily accessible thing these days, and that alone could boost unit sales for SCE.
Anyone waiting on a Playstation 3 price drop will be waiting a long time. While sales thus far have been less than stellar, Sony’s blinding bright future holds a lot in store for consumers. Games that may or may not come out this year can really help Sony get ahead. Killzone must deliver on its promises, and if it does, sales will rise.
When sales rise, why diminish your own price tag? If Sony can keep these huge name titles coming out over the next 18 months like it looks like they will, price will stay high, but the console looks to satisfy. Only when sales drop because the colossal titles have been out for so long, and the majority of the install base has had them for however long, will the price begin to sink.
Don’t count on it being within the next 12-18 months - If Sony can prolong the release of a lot of its must-have titles, people will wait to buy units, and the units will be sold in excess when the games that people have been aching for are finally released.
Don’t wait for a price drop, consumers. Join up, and get on the band-wagon. There’s plenty coming, and the games are more important than how much the system will cost you in a year and a half’s time.
Play Beyond.






Posted by Mitchell Dyer






