"Sony is under major pressure to cut the price of the Vita"

Discussion in 'User Submitted News' started by prowler, Aug 5, 2011.

  1. prowler
    OP

    Member prowler Sony

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    “PS Vita’s quite expensive,” said Takeda, 36, an event planner in Tokyo, who owns both a PlayStation Portable and Nintendo Co. DS handheld machine. “I don’t think I’ll be one of those people rushing to buy it on the release date.”

    Takeda helps illustrate why pressure is building on Sony to cut prices of its newest game machine after Nintendo slashed the cost of its new 3-D portable player to as low as $169 and as more gamers flock to Apple Inc. (AAPL)’s iPhone and iPad to play titles such as Rovio Mobile Oy’s “Angry Birds.”

    Kazuo Hirai, Sony Chairman Howard Stringer’s top lieutenant, signaled yesterday the company won’t engage in a price war with Nintendo.

    “Gamers are increasingly anticipating Sony to lower prices, especially after the 3DS cut,” said Hideki Yasuda, a Tokyo-based analyst at Ace Securities Co. “Sony is under major pressure to cut the price of the Vita or risk a major failure.”


    U.S. consumers will be able to lay their hands on PlayStation Vita, the successor for the model that went on sale in 2004, after Christmas, starting at $249 to $299 for a 3G version. Japanese consumers will be able to buy the Vita, which feature an organic light-emitting diode display and touchpads at the back, by the end of this year from 24,980 yen ($313) to 29,980 yen.

    “We have a very good product at a very affordable price,” Hirai, president of Sony’s Consumer & Products Services group, said. “There’s no need to lower the price just because somebody else that happens to be in the video game industry decided they were going to.”

    Sony, which lost 34 percent of its market value this year, rose 0.1 percent to close at 1,925 yen in Tokyo yesterday. Nintendo climbed 1.1 percent to 11,950 yen in Osaka, narrowing its loss this year to 50 percent.

    Reviving demand at the games division is key for Hirai, the frontrunner to succeed Stringer as the head of Sony, as the company faces an eighth consecutive year of losses at the main television business and the online service recovers from its worst hacker attack ever.
    Cutting Forecasts

    Last week, the maker of Bravia televisions and Walkman music players cut its full-year profit forecast 25 percent, citing sluggish demand for TVs. Nintendo lowered its annual profit forecast 82 percent.

    Sony, Nintendo and Microsoft Corp. (MSFT), maker of the Xbox 360 and Kinect gaming devices, are confronting new competitors in the gaming industry who are beginning to reshape the field.

    Among them is Cupertino, California-based Apple, which estimates it’s sold more than 200 million mobile devices capable of downloading and playing games. Apple’s App Store offers a choice of more than 100,000 game and entertainment applications to users of the iPad, iPhone and iPod Touch.

    “The market opportunity for specialist devices is shrinking rather than growing” because of the convergence of activities into a single device, said Piers Harding-Rolls, a senior analyst at a research firm IHS.

    “Angry Birds,” a popular mobile-phone game where players slingshot birds at pigs hiding behind barricaded wood and stone shelters, is aiming for 100 million downloads in China alone. Customers are also flocking to online games such as ‘Farmville’ and ‘Cityville’ on Facebook Inc.’s social-networking site.

    “The environment for portable game players has become more difficult because of smartphones,” said Koki Shiraishi, an analyst at Daiwa Securities Group Inc., who estimates shipments of the PS Vita will be about half of the PlayStation Portable sold during the product’s first two years.

    Hirai isn’t alone in expecting Sony to resist price cuts.

    “The customers Sony is targeting with its Vita are those willing to spend a lot of money,” said Shiro Mikoshiba, an analyst at Nomura Holdings Inc. in Tokyo. “That’s a valid strategy even if the volume’s low as long as it can sustain the higher price.”

    Sony is unlikely to cut prices until next year, said Harding-Rolls, a London-based analyst at IHS. The company may sell 36 million PlayStation Vitas by 2015, short of the 46 million PSPs sold at the same stage of its lifecycle, he wrote in an e-mail.


    “If strong titles aren’t there for Vita, there is a risk I might have to cut my targets,” said Kazuharu Miura, an analyst at SMBC Nikko Securities Inc. in Tokyo, who expects Vita sales will reach 2.5 million units by March.[/p][​IMG] Via
    [​IMG] Source

    Please read the thread fully before posting, I know most of you will read the title and post anyway.
    Sony doesn't have to lower the price like said in the article, it's at a great price now considering what you're getting with it.
    All that's needed is some solid 3rd party titles, maybe see a few new IPs (Gravity Daze is looking to be one great game)

    Also Square Enixs comment on Final Fantasy/Dragon Quest 20 being on smartphones is becoming more true by the day.
     


  2. machomuu

    Member machomuu Drops by occasionally

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    I honestly don't think it to be that much, I wouldn't mind if they did listen to these guys though and lowered it.
     
  3. BORTZ

    Global Moderator BORTZ wtf, nintendo

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    'Im certainly not saying "not to lower the price" but i dont think they are in all that much of a difficult place.
     
  4. SparkFenix

    Member SparkFenix GBAtemp Fan

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    Considering what if offers the price is fair, I really doubt it'll fail just because of that.

    And he also mentions how people are going for angry birds and other mobile games.
     
  5. Scott-105

    Member Scott-105 Bow to me. Please?

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    I don't think they need to lower it. It'll be the same price as the 3DS at launch, and it's more worth the money than the 3DS IMO.
     
  6. Maedhros

    Member Maedhros GBAtemp Advanced Fan

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    Bullshit article.

    Just a nice thing I've read in another forum:

    Nintendo announces a glasses-free 3D handheld while the DS is riding high.
    Nintendo shows a system that blows people away at E3, with everyone citing the amazing 3D, great graphics, and huge lineup.
    Sony announces a PSP2 called the Vita with dual touch panels and 3G and PS3-like power, everyone is blown away.
    The 3DS comes out for $250, and suddenly people think the 3D's terrible, the graphics suck, and the lineup is shit and it underperforms.
    Vita is announced to be $250, everyone flips their minds at the low, low price for that hardware and what a bargain it'll be.
    Nintendo cuts the 3DS price by $80 in the first six months, personally apologizes to its early adopters, and gives them free games.
    Investors and commentators claim that the Vita is now fucked at $250 because it's priced too high.
     
  7. Guild McCommunist

    Member Guild McCommunist (not on boat)

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    The price gap is still plenty competitive for the Vita. If people were willing to spend $250 on the 3DS with a gimped launch line-up, they're more than willing to spend $250 on a Vita with a solid launch line-up.
     
  8. FrozenIndignatio

    Member FrozenIndignatio Tyrant R. of ye olde Prinny Squad

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    So the reason they should cut the price is because of the oh-so-scary-and-dominating-game: angry birds?
    *sigh*

    Different audience draws between the two... Granted, however, smart phones are certainly draining the attention from consoles in Japan, but not everywhere... Of course, sony has its japan fan base covered as soon as they can get capcom to release a new monster hunter for it.
     
  9. _Chaz_

    Member _Chaz_ GBAtemp's Official Mook™

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    Wow, Sony sounds extremely arrogant.
    $300 for a version without the basic limitation, and they think that's not too much? That's more than the PS3 is being sold for now, which I'm inclined to believe is much more powerful and has much more software.

    Jesus, Sony. You're starting to sound like Apple, and I don't like it.
     
  10. Ryupower

    Member Ryupower Brood

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    it worth more the $250($299, 3g version)

    for what it can do, it at a great price
     
  11. koimayeul

    Member koimayeul GBAtemp Maniac

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    ugh i was thinking the same while taking a dump today, it will be tough for Vita to compete price wise with the 3ds cheaper than a Dsi XL
     
  12. Coto

    Member Coto GBAtemp Addict

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    I'd pay those $250 just because the hardware Vita has, as for 3DS don't even think about it...
     
  13. machomuu

    Member machomuu Drops by occasionally

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    I do agree, this article sucks. The mere logic of it oozes of ignorance and cheapness.
     
  14. AlanJohn

    Member AlanJohn くたばれ

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    i know
    very reasonable price it
    developers like it
     
  15. Guild McCommunist

    Member Guild McCommunist (not on boat)

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    $300 for a version with just 3G added. It's not like a WiFi-only model will be completely gimped of everything.
     
  16. Nebz

    Member Nebz The N00b

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    I don't see a problem with a nice little price cut unless they're at a loss. What more will really happen besides a ton of lulz worldwide?
     
  17. _Chaz_

    Member _Chaz_ GBAtemp's Official Mook™

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    Weren't a vast number of people complaining only a few months ago because $250 is far too much for a handheld?

    And if anything, it's the quote that bothers me the most.
     
  18. Guild McCommunist

    Member Guild McCommunist (not on boat)

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    Nope. I never remember universal bawwwing at the 3DS price. The Vita price just offered a lot more bang for the same amount of buck. Considering people thought it was gonna be like $400, it was a pretty satisfying price point.
     
  19. _Chaz_

    Member _Chaz_ GBAtemp's Official Mook™

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    Seriously?
     
  20. Maedhros

    Member Maedhros GBAtemp Advanced Fan

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    $250 is too much for 3DS.
    $250 isn't much for Vita.

    That's what people said. When Sony announced the price, they said "if the hardware Sony is putting on this thing can be priced $250, why is the 3DS priced for $250 too?"

    Suddenly, price cut. And it was NOT becauce of Vita, it was because the thing wasn't selling like they wanted.
     

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