http://www.1up.com/do/newsStory?cId=3158656
Quote:Just as Microsoft's about to introduce a new Xbox 360 SKU, Sony's announced they're removing one from the marketplace. Sony Computer Entertainment America announced today they've officially dropped the PlayStation 3 20GB SKU and will no longer be offering the cheaper, Wi-Fi less model to North American retailers. Sony says a 10-to-1 retailer demand for the 60GB SKU has prompted the move.
Don't panic, though, as 20GB owners will continue to receive the same customer service support they were guaranteed upon purchasing the machine. The architecture between the 20GB and 60GB SKUs are the same, save for a few feature differences, so the shift is minimal from a customer relations and development perspective -- unlike Microsoft, who cannot drop support for the Core SKU, as that model doesn't come with a built-in hard drive.
"At launch, we offered two separate models of PLAYSTATION 3 to meet the diverse needs and interests of our PlayStation fan base. Initial retail demand in North America was upwards of ninety percent in favor of the 60GB sku, so we manufactured and shipped-in accordingly. Due to the overwhelming demand for the 60GB model from both retailers and consumers, we have ceased offering the 20GB model here in North America," said SCEA senior director of corporate communications Dave Karraker.
"In addition to the larger internal hard drive, the 60GB PlayStation 3 features added storage media slots and built-in Wi-Fi not found in the 20GB system. Based on retailer and consumer feedback, we have decided to focus our current efforts on the more popular 60GB model," he concluded.
And so it's official -- less than six months after the launch of the PS3, the 20GB SKU is officially dead.
"Retailer demand", hah... we all know better. It's because the profit margin is larger on the $600 model.
Actually, they are pretty much right on this. Of those people who actually have the means to afford it, they don't want the "bad" version, they want the good one, and very likely can afford THAT too.
Most likely, they actually did do this exactly because no one was buying the cheaper model.
This multiple package thing is a little much.
"SKU", as I have learned, is some sort of back of the store terminology and to be honest I don't want to know the deeper intricacies of stocking shelves. Let's just call it what we all used to call these. Bundles, models, packages!
A Black Falcon Wrote:we all know better. It's because the profit margin is larger on the $600 model.
What profit margin!?!?!? They cost $1200 to build! Sony only makes a profit by selling the games at a 400% markup.
Well, I think it's more like $800, but yeah, that should have said "the losses are less" instead, certainly.
Quote:This multiple package thing is a little much.
Which is why it makes so much sense for MS to add a THIRD one! Yup!
I agree that the 60GB system is inherently more popular, but I'm wondering if Sony intentionally slowed shipment/production of the 20GB systems to make an excuse to drop them. I remember at launch the 20GB systems were not available right away, and it was a few weeks until they finally showed up in stores. This might have convinced people who had preorders for the system to simply upgrade to the 60GB model. Whether it's a conspiracy or not, I'm glad at least one company is done with this multiple models crap.
Don't worry, MS is taking up the slack :D.
Looks like it will be that much longer before the price drops within an acceptable level. Pity, because the longer I have to wait to get my hands on Ratchet & Clank the more I am cry.
Quote:I agree that the 60GB system is inherently more popular, but I'm wondering if Sony intentionally slowed shipment/production of the 20GB systems to make an excuse to drop them. I remember at launch the 20GB systems were not available right away, and it was a few weeks until they finally showed up in stores. This might have convinced people who had preorders for the system to simply upgrade to the 60GB model. Whether it's a conspiracy or not, I'm glad at least one company is done with this multiple models crap.
Yes, they definitely gradually reduced supply. They never were making many of them, but as time passed reports of the things getting even harder to find got more and more common, and they were delisted from various sites because of lack of supply... so really, this was just confirming what everyone already knew: Sony only cares about the $600 one.
As for price... well, $500 isn't exactly affordable either, and until costs go way down, Sony's not dropping that price. But yes, this does push back the timetable until the system is actually affordable, almost certainly. It's like Sony and MS WANT Nintendo to beat them! :D
... really, the only question right now is whether the Wii will pass the X360's worldwide sales total this year or next year, and "this year" is looking like a better and better guess. Though Halo 3 plus a price drop might stave if off, if they do that...
MS should ditch the harddisk-less "core", drop the premium to the price of the core, and release the elite at the price of the premium. That'd certainly fix our little red wagon. Have the costs to produce that system not lowered even one bit since the system came out?
Oh, costs have gone down quite a bit. MS just won't lower the price because they want to make as much money as possible off of the things, after the original Xbox lost a billion dollars a year... but yes, that's definitely what they should do as a start. If they want to keep the Core, drop its price down too and perhaps make Nintendo drop its in response... :)