Hot on the heels of rumors that the PS3 may be heavily discounted throughout Japan, Sony Computer Electronics of America boss Jack Tretton has chimed in and said that the possibility of such a price reduction coming from Sony was out of the question. "No… There’s a heck of a lot more under the hood and it costs us more money to make it." When compared with the PS2’s price reduction, he said that the PS3 would be "a lot more difficult to cost reduce."
Tretton then fell back on the tried and true company line that the PS3 is a game machine that is truly worth its relatively high price. "I think the consumers that get their hands on a PlayStation 3 clearly see the value and not only want to buy one for $599, in some instances they’re willing to pay ridiculous prices to buy one on eBay."
While Tretton’s remarks about eBay were true during the first few weeks after launch, the prices of PS3 machines on eBay have fallen dramatically as the machine is no longer in short supply–and apparently, demand–allowing the system to be readily available online and at retail. Recent scans at eBay have shown an inordinate amount of PS3s remaining unsold, with profit margins being cut to a mere $50, while others are even being sold at a loss.
Sony’s sentiment that the PS3 is a machine worth the price of admission goes against those of consumers, which seem to state that the PS3 is simply too expensive. So far, the consumer seems to be winning the battle of trying to get Sony to rethink and compromise its PS3 marketing strategy.
