PS3 60GB doesn't represent a price drop, it's a clearance sale

by Alexander Sliwinski on Jul 14th 2007 9:35PM

Anger, frustration, confusion, denial, shock ... these are all words that can be used to describe the emotional state felt by the gamer community after Sony went from officially announcing a price drop on Monday, to essentially making it all a moot point by Friday because the 60GB is being discontinued. The mainstream media still hasn't picked up on the story and we haven't seen anything from the Associated Press or Reuters* yet. You know, this may be considered a price drop, but the real phrase is "clearance sale."

That's what it is. We'll be right back to the $599 price we started at in a few months once the 60GB units sell, only with some "added value" thrown in (with a little something taken away). Is going back to the old price worth it to consumers for an extra 20GB and Motorstorm? Is that what Sony executives really think is going to move units at the magical $599 price? Of course, there is also the possibility that once the 60GB units sell out, the 80GB model will drop down to that price after Sony squeezes a little bit more cash out of having a premium model. If the 80GB takes the place of the 60GB the moment stock runs out, there will still be a PS3 model at the new $499 price.

As the story played out on Friday, there were many people at E3 scrambling to get what the real story was and comparing notes on the madness we had heard the night before. Most conversations regarding the subject started with, "There's no way it could be true." But here we are -- if the 80GB model doesn't receive a similar price drop, we'll be stuck with a new package for the PS3 at the old price of $599.

*Update: Reuters caught on and impresses with proper attribution.

Source

Tags: e3, e307, playstation, ps3, sony

Reader Comments (228)

If your getting sick of it, then write stories about how microsoft has continued to sell a defefctive product for almost 2 years before admitting it. Esp at 11.6 million crap 360s.

I'm pretty sure they already have.

I love how the SDF will look for any excuse to get people thinking about something else, since they obviously can't come up with an excuse for this.

And while we are at it, lets still grill Sony for purposely manufacturing the PS1 and PS2 to fail so they could inflate sales!

Oh wait, people were still too far up Sony's ass to really critisize them for that back then.

No doubt, I have yet to see a red ring on my 360, but I had to replace my PS2's laser FOUR TIMES. At least microshit will repair your 360 for free if it's under warranty. Sony told me the DVD laser diode unit was not covered under the warranty.

And I'm sure I'm not alone here on this one.

Ok heres the thing with sony. They actually think people are gonna buy a PS3 for over 500 dollars! ok a price cut is when u lower the cost of ALL models...not take a model away and lower the price of a higher one. The people who arent buying it are still not gonna buy it due to its STILL insane price and lack of games.I would buy one if the price went to maybe 450 US. as for the 360. I have had mine for a year and not a problem with it so maybe some people should take care of thier systems better.

The 360 problems are truly unfortunate, but you can't say that Microsoft hasn't addressed the problem. A billion dollar warranty boost is a pretty huge feat. For $600 I want not only a 3 year warranty, but some good games too.

To all fanboys who are so sure Sony will drop the 80GB to $499 once the 60's are gone. Have a look at SCEE in Europe. They have no price drop and are only offering a better bundle now. NO PRICE CHANGE. Expect the same here... PS3 goes back to $599 but is bundled with a game and a non-rumble controller (hey, gotta clear those out too!). You chose wrong, suckers!

SONY IS HIGH.

THEY HAVE BEEN EVER SINCE THE PSP LAUNCHED. It's a shame. Looks like I'll have to snag a 60gb before it goes away. Or I could wait for a year or two for the 80gb to drop in price. Of course, it will go on clearance as well to make room for the 100gb PS3 packaged with MGS4...

By the way, it's nice to see that Sony is getting some defense. I don't mean to bash them, it's just I really don't need 80 gigs.

this again?? how many more times should we expect for this to be posted??

we know you hate the ps3 joystiq, but posting the same news twice, don't you think it's a little tacky..? is not like you haven't posted it already...

oh well.. bottom line.. the ps3 is 499 right now.. and i strongly believe that the 80gb will be the same price.. but obviously they're not gonna announce that a better sku will be the same price in one month other wise they'll never get rid of the 60gb..

to me it's obvious.. to haters.. it's just more flaming fuel..

we'll see who's right in a couple of months thou..

This anti-Sony rhetoric by Joystiq has gotten to the point of rediculous and revolting. Either be fair or send your writers to XBox 360 Fanboy where they belong. Bottom line is consumers can now get a full featured PS3 for $100 less. You have no idea what will happen when the 60GB runs out - Sony could ramp production and continue offering the 60GB or they could de-bundle the 80GB unit and sell it at $499-$549.

Sony knows a hell of a lot more about price-points, moving products, and what they need to do financially to run their company than the dip-#$%& writers at Joystiq. Leave your expert analysis to the games.

Disclaimer: I own a PS3 and a 360

Its not anti-sony. Its anti- stupidity. I don’t care who you are. Microsoft, Nintendo, Sega, Neo Geo. If you pulled this kinda shit you deserve to get blasted by the media. Only the fanbois are the one screeching about this coverage being unfair. Sorry to say it but you can’t turn a stinking turd into delicious Filet Mignon.
This news is a turd no matter how you look at it, sans the beer goggles the fanbois are wearing of course.
Its easy to ID said fanbois too. They are the ones who want this story to evaporate into the ether ASAP because deep down even they know this is BAD news for Sony.
That being said I expect a price war to break out between MS and Sony this fall just before Black Friday. I expect Sony to blink first and drop to $500 with MS fallowing with a drop to $250 for their Core system with a 20GB HD. The standard or former “premium” will go away and the Elite will take its place at $399. All this is dependant on how well Halo 3 moves systems. The entire equation changes if sales take off with H3. But again my money is on Sony blinking first. They are stupid but they aren’t THAT stupid.

its not anti sony if its truth.is it anti MS when they report on 360 having HORRIBLE fail rates?!
stop being quick to assume something is anti-console because it doesnt paint the console as a god.stop the fanboy mentality thats for third graders in school yards.thats were it matters!

this is a bad move and it needs to be pointed out.i still need a ps3 and i refuse to pay $600 and im very hesitant on the $500 price point.but theres no other way to play mgs4 and little big planet.i really wish sony would bring out the 20gb again for $400,id be there in a second! i dont need card slots or wifi and i can buy a MUCH bigger hd for less than $200.

Wait a minute. The coverage lately has been fairly pro-Sony overall. Joystiq did their best to make Moore look like ass during an interview, drooled over Killzone while dissing halo, posted 10 RRoD stories, and failed to link or give articles to all of the new Xbox 360 console exclusives hitting this fall. There were good trailers for Lost Odyssey (which actually looks really good), Mass Effect, Too Human (Game engine movie), and others.

If anything, Sony has been getting good press lately because they are close to finally having some games worth playing out.

frankly, this is what I liked Joystiq about.. Editors add on their thinkings to the news.. it sparks flamewars yes, but that's what makes Joystiq different from big gaming sites..

When I'm reading the news a thought came to my mind, like Sony clearance sales, it feels good to see editors publicly admit having the same thought.. it's really what makes Joystiq a fun gaming blog. Irrelevant news + personal comments that makes it why it's called a blog

Sony gets the bashing because:

- they announce price cut for the PS3. They also introduce the 80GB bundle at the old price.
- 2 days later they let slip that they don't make the 60GB anymore and once it's gone they go back to one SKU at $599

This is the final word from it from Kaz Hirai himself!
Now, might they drop the 80GB to $499 when the 60GB is gone? You would friggin hope so! But so far the above is all that is confirmed. So that's why they earn the shit they get.

I don't see what the big deal is; if you want a 60GB PS3, then now is the time to go out and get one for $499. If you are going to purchase Motorstorm and the 20GB means something to you, then get the $599 model. Until the 60GB model is out of stock, then we're complaining about something that may not even be a issue in a few months. Focus on the current situation: 60GB is at $499 and you can go to any store to purchase one.

Whatever, any1 with at least some IQ above 30 knows that the price will not stay at $599 after the 60 gig sells out. The reason they don't say it now cuz so they dont want people to wait until then.

I guess the only people bitching are the MS fanboys, cuz right now you can get a 60 gig PS3 for $500 with the emotion engine and that's a great deal, even when the 80 gig drops down to $500 you'll still getting a great deal cuz you get it sooner.

It's just too bad that no one wants to pay $500 for a video game console.

emotion engine has blast processing!

It's pretty obvious that Sony loves their $600 price point, and no matter what they add to the PS3, as long as it costs $600 at once, it will fail.

Holy shit, I said fail. A bit too overboard there, I apologize. More like 'not sell on the level of the 360 or the Wii'.

Yeah... Sony loves the $600 price point because they're still losing $100-200 on each PS3 sold. You really don't expect them to to swallow another $100 for a price drop.

Well, the PS3 w/Emotion Engine days were number when the Euro version was introduced. It was a matter of when other regions would see it. They're doing all they can to cut costs down right now. When will Japan see an EE-less PS3?

Basically, Sony is throwing out an 80GB HD to hide the fact they're getting a reduced cost (to Sony) machine to slow the bleeding. Because it's a number normal people only see specs on the box. "Wow! 80GB is greater than 60GB so it must be good."

You should focus on PS3 with EE and without. I don't think Sony even makes the HDs that come with the PS3, probably made by Seagate. And mainstream laptop HD platter size has moved from 60GB to 80GB, so the cost difference is negilable.

So bascially comes down to PS3 with EE is dead. And with the cost savings of not using the EE, will they be able to to shift to more intergration, 65nm die shrink, to further reduce costs to pass on the savings to the consumers?

Yet, it costs them just under $600 to produce each PS3 unit in America at the moment, now less since they're removing the emotion chip, the blue diode used in the bluray drive came down in price rapidly hence why Sony is now actually making profit off each EU PS3 they sell.
So, their $599 price tag is actually getting them a bit of profit at the moment, hence why a price drop was inevitable, it's why one happened with the 60GB unit and it's now why Sony has 'introduced' a new 'bigger and better' version to try and trick people into thinking they're not making profit off the console. When in reality, they're probably actually making money off the console.

Think you rekcuskcoc the BUNDLED 80GB will be $599
Hmmmm? What price will an unbundled 80GB PS3 be with the cancelation of 60GB? Take a guess ssaemal.

What kind of post is this? It's as bad as the comments in the other thread.

What's shady about this? This is a completely sensible business move. You need to transition to a better, cheaper model, but you can't sell it at the same time at the same price as the old one. So you tie it in with the price drop, and smooth out the transition. When the old model is sold out, you bring the new model in as the definitive version at the new, lower price point.

And that's what will happen, beyond any doubt. If you really think they're going back to the $599 price point after this is over, you're even more clueless than you think Sony is.

And did you really need a slip-up from the SCEE head to figure this out? Anyone with half a brain knew the 60 gig was discontinued as soon as the 80 gig was announced.

Sony has not been smart lately when it comes to business, and I doubt they'd price the new SKU at $600 and then lower the price less than a few months later.

No, what they'll do is drop Motorstorm from the package and -then- drop the price. Frankly, I don't think it'll be a bad deal for anyone.

It's not a better model, its a weaker one with limited emulation. If I want a bigger hard drive I'll head over to newegg and pop a new one in for less than 100 bucks.
Motorstorm may be a good game, but it's no system seller.

I was going to buy a ps3 when they announced the drop, but now that it turned out to be a farce, I'm not going to get one. They'll never get 3rd party developers for this thing now, I'll pick it up in a bargain bin one day instead.

Sony stupidity has helped the Wii and 360 far more than anything Nintendo and MS have done

$500 does not equal a great deal unless you are a rich stuck up fanboy....get over yourselves!

Because $400 is just that much better of a deal, with no HDMI, Blu-Ray (HD-DVD, etc), or built-in wireless!

Sigh, I wish we could just talk about games without the Fanboys, and M$bots. Seriously its not like Microsoft has been the shining star of all that is good and pure in computing, gaming, and just business in general.

I assume when they were making the 80 gig ps3 sku without the emotion engine they were planning to lower the price since not including the the EE would make it cheaper to make and they also needed to sell some units. But there are also a bunch of unsold 60 gig ps3's so they can't release a $500 80 gig ps3 because no one is going to buy the 60 sku at the same price. So they released an 80 gig sku bundled with motorstorm at $600 and lowered the 60 gig sku to $500. Obviously more people are going to buy the 60 gig sku and when it runs out of stock they would lower the 80 gig sku to $500 probably without the motorstorm bundle.

I think its not that bad of a strategy but it just got out into the media the wrong way.

Anyway this is my assumption which to me makes some sense. Lets hope they dont make the stupid mistake of keeping the 80 gig ps3 at $600.

first of all, no matter what your baseless Sony hatred gets you to think, the 60GB model DID get a price drop: it was $599 before and now its $499. thats a price drop, not a clearance sale, Copernicus.

second of all, are you actually trying to spin the speculation of the 80GB model getting down to $499 once the 60GB model is phased out as disappointing news? if so, you're a moron.

third of all, you're pathetic. you have no problem displaying your baseless hatred against Sony, yet Microsoft remain angels even though they got a %35 failure rate which, by the way, is 4 million of the 11.6 million units sold.

Oh please shutup. Is that you're only defense against these kinds of story, call everyone else a fanboy or bias just to make your self feel better? That's pathetic.

Because like it or not, Joystiq editors are allowed to express their opinion on any company's decision. If you don't like that then I recommend going to another site.

4th of all dude you need to relax.
Do you have fanboy carved in your face? Alexander is expressing what can best be described as shock that Sony is ultimately sticking with the same price point that has been slow (by comparison) to sell, the very price that dropped jaws at E3 last year, the very SAME PRICE everyone has been complaining about and demanding it be lowered. True there is now a $499 PS3, but it’d basically now a clearance sale, thus stock is limited.

And Joystiq has reported on the 360 failure rate, way back before it was news, back when it was just hearsay and not acknowledged by Microsoft officially. Back when the very posting of it would bring a backlash of fanboys replying “It’s a great machine and mine has been running for weeks just fine, god you’re so bias.” BACK WHEN IT LAUNCHED!

I would suggest you check YOUR "baseless" Microsoft/Joystiq "hatred".

Ska Oreo needs a medal.

if this happens...sony FUCK YOU!!!! i was gonna get a job and save up but now i may not even have 600 by sept sony ur assholes if you pull this one

Oh man, where's sheppy? We were having a pissing match about this before. I knew this would be the conclusion, ultimately the same $600 price that hasn't been moving near as many units as its competition.

I'll say it again. WRONG STRATEGY Sony. I swear I don't think they understand that $600 doesn't move a whole lot of product no matter how much value one argues it is worth.

This is the "Oh God no one wants this thing" strategy. I think they're just angling for getting the R&D money back on this thing.

plus i wanted to add I just turned 16

I do hope that Sony does keep a $499 price point in the future. I, unfortunately, cannot allocate half a grand at this particular point in time to a new system. However, during the holiday system I will. If at that time I can get a full featured PS3 for $499, then that's where my money will go. If only $599 PS3's are available, then i'm going to get a new chipset 360 Elite. It's that simple.

Why does everyone keep bringing up the Emotion Engine, the more recent updates have disabled it in the older consoles anyway, backwards compatibility is still intact though. So please quit acting like it's a big deal.

Do you have documentation that the Emotion Engine chip has been disabled and that software emulation has accommodated all the same titles? Still Sony hasn't announced we don't even need the hardware chip anymore and most gamers don't know about it.

The problem is that this situation is panic that 60 gig with hardware emulation will get sold out and then the slightly better 80 gig bundle without the hardware emulation, who people think worse as well, will replace the old price. That they are clearing out the 60 gig to bring in the cheaper to make 80 gig at the old $599 price.

Ska Oreo,

you really need to work on your english, both writing and comprehension.

his writing looked fine to me!

Says the guy with the inability to start his sentence with a capital letter. Right.

Besides, as long as it's readable, it's fine. Stop being bitter that you're an idiot. You idiot.

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PS3 60GB doesn't represent a price drop, it's a clearance sale

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