Japanese Retailers Predict Price of PS3 and Revolution

Speculation about the price points of Sony™s PS3 and Nintendo™s Revolution continue to grow. A survey conducted by Japanese game publication, Famitsu, added to the conjectures. According to a recent survey conducted by Famitsu, gamers, publishers and retailers, were asked what their best guesses were as to the launch price of the two next-gen consoles. The poll indicated that publishers and retailers thought that the PS3 would most likely cost about 40,000 yen ($336). Gamers had a higher estimate of 50,000 yen ($421). All three groups agreed that the Revolution would probably cost around 25,000 yen ($210). While these guestimates have no hard data regarding the real prices of the new units, it does give Nintendo and Sony an idea of just how much money the consumer is willing to part with. If the estimates of a price range of $336-$421 are correct for the PS3, one could make an educated guess that Sony might go for the average price of $378. This would be higher than the entry level Xbox 360 ($299), but below the premium package ($399) of the 360. Nintendo, of course, will be the low-ball entry with a $210 price tag. What does this all mean? Sony is struggling to determine how much money they can charge for their machine without causing a revolt among their loyal user base and new buyers. If the price tag is significantly higher than the 360, people may sit on the sidelines and wait for the PS3 price to drop. If that happens, Sony loses big time. But there is one other X factor that may cause Sony to drop their prices even more, and that reason is the 360. When the PS3 is launched, the 360 would have had a lead of a year or more, to establish a user base. And that is the key; the more people who have the machines, the more money that can be made from software sales. If Sony wants to increase their market share and catch up with Microsoft, they may very well have to bite the bullet and lower their PS3 prices in order to get more of their machines into the hands of consumers. Toyota understood this. When they released their hybrid car, Prius, the manufacturer reportedly lost $10,000 to $15,000 on each sale. While this sounds insane, they are now laughing all the way to the bank. By undercutting their price (and taking on an initial large loss) they were able to make the hybrid technology (gas/electric engine) available and affordable for the consumer. They also established a huge user base. The gamble paid off. Toyota now sells more hybrid cars than any other car maker. They are making very nice profits. Sony, we hope you™re listening.