Comment "Probably too cheap" means.... (Score 2, Insightful) 527
It seems that everyone has taken the "probably too cheap" statement out of context. By reading the interview it is clear that Ken means that the console is probably too cheap because Sony expects it may not be able to keep up with demand at that price.
From Sony's last quarterly earnings report, it is clear that the company is spending massively on the development and launch of the PS3. By pricing the console as high as the market will bear, they can recoup some of that money.
In other words, it doesn't make sense to sell out of your console at a lower price point when you can make more from the same number of sales by pricing it higher.
What all this means is: Expect availability numbers to be low this November if the PS3 price is very high.
Personally, I don't care about Blue-Ray and I won't care for at least a couple of years (if it makes it at all). In the meantime, I'll be enjoying the Wii and the 360 this holiday season.
From Sony's last quarterly earnings report, it is clear that the company is spending massively on the development and launch of the PS3. By pricing the console as high as the market will bear, they can recoup some of that money.
In other words, it doesn't make sense to sell out of your console at a lower price point when you can make more from the same number of sales by pricing it higher.
What all this means is: Expect availability numbers to be low this November if the PS3 price is very high.
Personally, I don't care about Blue-Ray and I won't care for at least a couple of years (if it makes it at all). In the meantime, I'll be enjoying the Wii and the 360 this holiday season.
