Sony CEO: PS3's high price is not a problem

[T2k]

http://www.dailytech.com/Article.aspx?newsid=3025

High Price of Entry Won't Phase PS3 Sales Says Sony Exec

Sony banks on "future-proof" tech to win next-generation console war

Back in May, Sony Computer Entertainment Inc. (SCEI) president Ken Kutaragi was quoted as saying that the $499 and $599 price points for its PlayStation 3 were "probably too cheap." Today, Sony CEO Howard stringer again defended the steep price of entry and justified its pricing structure to the best of his ability.

"The price of the PS3 is high... But you're paying for potential. Obviously, it's a higher-risk strategy as all new inventions are. But if the PS3 lives up to its total potential, then I don't think anyone will be worried about Nintendo or Xbox's cheaper price," said Stringer. Considering that consumers consider a console purchase to be a long-term investment, Stringer feels that the PlayStation 3 is more future-proof which will allow potential customers to justify the price tag.

Stringer also notes that Hollywood studios may be the ones who determine whether HD DVD or Blu-ray wins this battle. Gamesindustry.biz reports:

Stringer went on to concede that Hollywood movie studios, currently divided over whether to support Blu-Ray or Toshiba's rival HD-DVD format, could ultimately determine who wins the next-gen war. However, the Sony CEO believes that film execs are "beginning to sense, in Blu-Ray, that the pendulum is swinging, and swinging for a clear reason" - namely that Blu-Ray discs can store more data.

 

[Purogamer]

I completely agree with the big paragraph about it being an investment.

His blu-ray stuff is lame. How about saying it will win because it's better, not because it can theoretically in the future hold more data. That's appealing to fanboys by using that. Anyone who's not a fanboy isn't going to buy into that. Sounds just like Kutaragi...

 

[ebonovic]

Stringer also notes that Hollywood studios may be the ones who determine whether HD DVD or Blu-ray wins this battle

Well that just shows what he knows...

DVD vs DiVX (Circuit City Version)
The studios LOVED the DiVX models, but the consumers hated it and pretty much killed it....

Same will happen with HD-DVD and BlueRay... via the sales of the hardware and the movies... It is the consumers that dictate what will "win", the question is which studioes are listening correctly...

There is no such thing a "future" proofing

Honestly... as a "tech geek", I could care less that Blue-Ray can hold more data... as honestly... it doesn't hold enough..

Databases and "data directories" are in the mid-terribyte ranges and higher...

So if I have to use to HD-DVD's to hold 50gb, vs one disk... oh well.
Dual Layer DVD are still to expensive for DATA storage, considering the price of two DVD's...

 

[minorthr]

Maybe I can convince my work to pay me on future potential

 

[xccell]

I don't really care how much PS3 is, I will never buy one unless Sony ever gets their hands on Halo franchise.