The Video Game Critic

http://www.gamespot.com/news/6168876.html?action=convert&om_clk=latestnews&tag=latestnews;title;2

Appearently the 500$ PS3 is being phased out.  I can't find it anywhere.   This is just flat out stupid.  When they are losing sales for the console being more expensive, they are getting rid of their least expensive console.   The 500 dollar system  was enough of a console for most people considering it had a harddrive, HDMI port, Blu ray player, and ethernet (but not wireless)  I don't know why they are doing this.  Hopefully they are doing this so they can bring the 600 dollar model down to 500 dollars.  I doubt it though because I don't think they can afford it.  Anyone want to discuss what is happening?  If they don't bring down in price the other model, this is the stupidest decision ever. 

[QUOTE=ActRaiser]

They're phasing it out because the loss per console for the $500 model is greater than the loss for the $600 model.  Let's be honest, throwing in a larger harddrive, wireless chip, and memory card slots is pretty cheap.  Hence, the $100 difference makes a huge difference accounting wise.

[/QUOTE]

Wow, if what you are saying is true, it looks like Sony isn't even gonna try to compete with Microsoft.   The 20 GB model of the PS3 wasn't that bad of a deal if you wanted a Blu Ray player.  I guess the cost of manufactoring the Blu Ray drive was just too much.   Is it worth an extra 200 bucks for a gaming system with a Blu Ray Drive, appearently the consumers are saying no, and Sony needs to get their act together.  Do you know how much of a hit they take on the 500 dollar model?

[QUOTE=Edward M]Wow, if what you are saying is true, it looks like Sony isn't even gonna try to compete with Microsoft.   The 20 GB model of the PS3 wasn't that bad of a deal if you wanted a Blu Ray player.  I guess the cost of manufactoring the Blu Ray drive was just too much.   Is it worth an extra 200 bucks for a gaming system with a Blu Ray Drive, appearently the consumers are saying no, and Sony needs to get their act together.  Do you know how much of a hit they take on the 500 dollar model?[/QUOTE]

What I don't quite get is why Sony didn't have the first year or so of games on the new system released on DVD instead of Bluray.  Their Bluray drives can read DVDs just fine.  If Bluray had succeeded, then they could start using it when they actually came to a point where they needed the storage capacity.

The problem with releasing games on Bluray right out the door is that if the Bluray format failed, Sony could have discontinued it and stuck with DVD for this generation, simply putting out models of the PS3 with a high-end DVD drive.  As it is, if Bluray fails, Sony can't ever do that for risk of a new model being incompatible with already-released games.  Additionally, they would have the expense of supporting an internal-only format just to keep their game releases going, as well as putting the extra expense on game publishers and developers of supporting that internal format.

[QUOTE=Edward M]Do you know how much of a hit they take on the 500 dollar model?
[/QUOTE]

http://www.isuppli.com/news/default.asp?id=6919

                                                  20GB        60 GB 
Preliminary Total Console Estimate    $805.85     $840.35
Suggested Retail Pricing                 $499.00     $599.00
Difference Between Cost and Retail  $306.85     $241.35

The link shows a much prettier chart then the numbers above plus they break it down by individual componenents.  The dropping of the Emotion Engine in the European PS3 did save them $27 so it looks like they're making cuts where they can.  The most expensive estimated piece is the Other Components and Manufactoring costs of $148.  You figure they can cut that down over time as well though they'll need to sell a ton of games to make up for nearly a $300 loss for every console sold.

The reason why they cut the PS3 model is because NO ONE BUYS IT!  Big Box stores like BestBuy and Walmart ceased to carry it because they just sat there.  Since those stores refused to carry it, Sony probably decided to pull the plug all together.

Even the 360 core system is a complete joke.  Nobody buys the thing.  You see piles of em at stores. 

[QUOTE=JustLikeHeaven]The reason why they cut the PS3 model is because NO ONE BUYS IT!  Big Box stores like BestBuy and Walmart ceased to carry it because they just sat there.  Since those stores refused to carry it, Sony probably decided to pull the plug all together.

Even the 360 core system is a complete joke.  Nobody buys the thing.  You see piles of em at stores. 
[/QUOTE]

Yeah, but the core 360 isn't exactly functional.  It has no harddrive, and the harddrive alone costs 100 bucks, so thats why everyone got the premium one.   The 500$ playstation 3 on the other hand has everything you need, HDMI output, 20 GB harddrive, ethernet card, and Blu Ray player.   If I were to buy a PS3, I'd probably get the 500 dollar one, as if I wanted  a bigger harddrive I could buy one later.  Now, it might even be longer before I buy one.  I would assume the reason the 500 dollar one hasn't been selling as well is because the E bay sellers were probably picking up the 600 dollar ones, and fixed the numbers.

Wow it costs them over 800  bucks to make the PS3?   Wow!!! so basically they are doomed and can't lower their price.  Looks like that Blu Ray Player turned out to be a Trojan Horse for Sony.

It's official: 20GB PS3 is dead!

[quote]"At launch, we offered two separate models of PLAYSTATION 3 to meet the diverse needs and interests of our PlayStation fan base. Initial retail demand in North America was upwards of ninety percent in favor of the 60GB SKU, so we manufactured and shipped-in accordingly. Due to the overwhelming demand for the 60GB model from both retailers and consumers, we have ceased offering the 20GB model here in North America. In addition to the larger internal hard drive, the 60GB PlayStation 3 features added storage media slots and built-in Wi-Fi not found in the 20GB system. Based on retailer and consumer feedback, we have decided to focus our current efforts on the more popular 60GB model."[/quote]

Source: [url]http://gamepro.com/news.cfm?article_id=108611[/url]

I'm wondering, how long before the PS3 is dead, period....

We have Wii's, X360's, DS and PSP systems in my town, but not one single PS3. Only PS2s! I asked at one store, they said they ordered FOUR and could not sell them for two months, so they sent 'em back.

A company is in trouble when more people are buying their LASTGEN system (Ps2) then their new one.

I think the company got too self-assured. Since PSone and two sold like hotcakes, they assumed they could put their name on ANYTHING (even blu-ray) at ANY PRICE and it would sell. Guess they didn't learn from Atari!

I think it is confusing to the general public to have 2 versions of a console. They probably figure if they buy the lesser one, they'll get hosed down the road.

Here's how it goes down on the playground : "Oh, you got the cheap PS3...."

Not cool.

The biggest attraction to console gaming is it simplicity. You have a standard set of specs with software specifically tailored to it. I'm not saying their is so much of a difference between the 360 and PS3 models that this would be a major issue, its more in the nongaming features, but still, there is that perception.

Not to knock on PC gaming, but unless you a fairly hardcore into it, it can be a pain in the butt at times. I hate installing software, downloading patches, the games are generally buggier, boot-up times, etc. With the recent multimedia kick in gaming lately, it seems like they are going down that road. So now are you looking at a PS3 or a PC? I just don't see Sony winning that battle, everyone already has a computer, and to sell it Sony's trapped into delivering on a ton of varied and splintered features to justify the cost of their console.

 And some people just want to play games on their game console. Imagine that.