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.