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Is the US Price Cut Temporary? |

David Reeves, president of SCEE, had some surprising things to say about the price cuts in America:

All they’re doing is taking their stock in trade that they’ve got at the moment of the 60GB model, marking the price down and it will all be gone by the end of July.

To summarize (full interview link at the bottom):

  • SCEA is clearing out stock of the 60GB SKU at a lower price.
  • There will only be an 80GB model after the 60GB model sells out.
  • The 80GB SKU does indeed have reduced backward compatibility: 88% vs. the current 100% according to Reeves. As stated before, this provides Sony with substantial manufacturing savings.
  • The cost difference between the 60GB drive and 80GB drive is very small: merely cents in Europe. That is being used to balance out the loss in backward compatibility from the user’s perspective.

Way to put a stop to that positive buzz that Sony has going in America, Mr. Reeves.

It’s worth noting that this guy is president of the European division, SCEE. These statements also conflict heavily with those from the president of the American division, SCEA, Jack Tretton. Mr. Tretton’s statements were much more positive and mundane.

The obvious questions:

  • Since the manufacturing savings of the software backward compatibility are likely much larger than the “cents” cost of going from 60GB to 80GB, why does the 80GB model cost more money? Right now, it seems like the 80GB model costs more and offers less.
  • Will they drop the 80GB price once the 60GB model sells out?
  • What the heck is Mr. Reeves doing? Why didn’t he just keep quiet?

I can believe that they will phase out the 60GB model and only sell the 80GB.

However, I simply don’t believe that they will only sell the 80GB unit at $599. I’m sure they will provide more attractive, consumer friendly options and this is just a PR gaffe.

Interview with David Reeves

  • Yeah, when I first read this I thought “What, are they CRAZY?”

    Surely this must be a misunderstanding somewhere. If not, I can see the 80GB dropped to $499 once the 60GB model runs out of stock.

  • Sporty

    I think they need to have a conference call internally and tell every SCE guy to stop talking globally, Jack Tretton should be the only one able to talk NA since he’s the guy in charge.

    I wouldn’t be surprised if they dropped the price of the 80 at the end of the summer, especially if sales slow down again. Considering his other comment

    “now we’ll add value and we’ll think about what we’ll do closer to Christmas.”

    But still this announcement is kinda a double edge sword. Fence sitters might think I need to get a 60GB now before they are gone. And if they do another drop this year they will piss off the people that bought during the summer.

    But We’ll see, all the different presidents of SCE seem to contradict each other. He might have been spinning the EU market on the lack of a drop their. If they clear the inventory and shift more then a million units this month, they probably want to keep momentum so something else might happen. At least Reeves was here to be a wet blanket 😀

  • What I dont know is, that why a Euro rep talks about US stuff. I like that he said, a 120GB version is more likely, since 20GB is a retarded upgrade.

    But then again, I already have my 599€ PS3^^

  • Kaz confirms it at about 1:50 into this interview “Once the current stock of the 60 GB is gone the price will return to $599”

  • ugh. what a mistake 🙁

  • Yes this seems truly dumb. I agree with Sporty Sony should send out the STFU memo to everyone. The thing i don’t care about is the hard drive upgrade. Hey Sony buy the cheapest 20 gig hard drives you can find and slot them into the PS3. You’ve given the hardcore gamers the abllity to upgrade the HD themselves. Let them. Get your product out at a cheaper price.
    Nobody would have said boo if Sony discontinued the 60 gig PS3 and lowered the price of the 80. Which seems to be the plan. Take away the game and it’s 499. But your PR has a long way to go.

  • The other thing I’m reminded of is the fact that Sony thinks its going to sell 11 million units this year. Nt a $599. So that pretty much means that they will have a price cut and possibly two this year. First one is the 80 going from 599 to 499. The nice start. Then at TGS I fully expect them to reduce the price again. Oh I don’t know a price cut and a MGS demo might push things along.
    The Sony Bravia/PS3 bundles this Christmas should be everywhere. I think Microsoft will be doing the same thing.

  • You put on a good show at E3 Sony, now you completely ruined it with this garbage idea.

  • I think this just happens to be sony’s clumsy way of transitioning into a 80GB 499 sku.

  • derrickgott007


    Dave Karraker | July 13th, 2007 at 3:27 pm

    Hey Guys. Let me jump back in here to answer some questions. Kaz has confirmed that we have stopped production on the 60GB in Asia. However, we have a very ample supply of systems still here in the North American market and will be able to meet demand for months to come at the new $499. We will keep monitoring the market and take the necessary steps to meet consumer needs once the 60GB model is depleted from retail. THE LAST LINE BACKS UP THE 80GB CORE PACK THEORY AT $499, AND MY GUESS IS AROUND CHRISTMAS.

  • Sporty

    That’s what I’ve been thinking also. The costs of 60 to 80 HDDs is pennies, thrown in a game to add value, if they did both packs at 499 60s wouldn’t sell as well since everyone would go for the 80.

    I would bet that once 60s are gone the 80s will drop the game and fill in the 499 slot.

    Either way I don’t care since I already own mine. Kinda sucks talking about people getting better deals then I got 😀