PlayStation 3 To Have a $500 Price Tag?
Every year Wedbrush Morgan Securities performs a deep analysis of the game industry followed by an up to date report. This years focus on the industry proves to be daunting for those looking forward to PS3's debut. WMS believes the PlayStation 3 could end up with a hefty price tag of $500 taking in account the various media functions it’s expected to perform. In turn this would leave the average consumer out of purchasing the console. The Definition of Insanity: Why The Next Console Cycle Will Start Off With A Whimper, a 144-page report conceived by both Michael Pachter and Edward Woo gave the gritty details. Although most of the document was a fairly pleasant and insightful peer into the industry’s future, suggesting continued expansion in many different sectors, it is obvious by the title some things just cant be overlooked. One of those things is the likelihood of PS3 being well overpriced.
The possibility of countless functionality, much more than that of recent consoles could be PS3's downfall in price range as believed by the two man who wrote the report. Sony of course is said to be pushing it’s next console closer to being more of an entertainment center for the living room than a basic console. It might be similar to the PSX which comes bundled with an array of options such as a digital video recorder, DVD burner and a few other media capabilities.
With 2006 being widely excepted as the release date for the PS3, many of the functions it’ll be required to perform will still cost around $250 to implement. Include the $300-$350 release price of a common console and that drives the PS3 to $500 easily.
"At this level, we believe that many consumers will be alienated," the report informs; as briefly stated before, $500 is just to much to ask for a console, considering this would knock out a huge chunk of Sony’s user base. Many of the features that are likely to be on the PS3 will go undesired by several, because either they wont be needed, or wont fit in with the persons lifestyle.
There is a catch though, and this is where WMS might of spoken to soon. Sony has made it apparent that two versions of the PS3 should be available to the public to fit certain needs and criterias. The typical PS3 would be what you call a “bare bones” version with out all the added functionality and media capabilities. So those who just want to play games and nothing more at and affordable price could get their wish. As for the techies a version resembling that of the PSX is also likely to be available, with a higher price of course.
It is also thought that the higher priced version might act as a “home server” for an entire household. Meaning some families may be interested in purchasing both for the sake of connectivity and networking between each. The “home server” version would be more suitable in a place like the living room among other entertainment gadgets, the basic being in more laid back areas such as bedrooms or lounges. Then over a simple wireless LAN connection each will be capable of interacting with one another.
With this marketing strategy in mind it is possible that Sony will reach an even higher fan-base with the release of two different consoles at two very separate prices.
If Sony does indeed have the time and resources to develop two consoles to compliment each other than it’s only natural to believe the “bare bones” version will go for around $250 to $300, while the one to resemble the PSX will be anywhere from $500 to even $700. This way no one gets left out.
Source:
http://www.ps3land.com/news.php
