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published: 18-Jul-07
territories: Australia, France, Germany, Italy, Spain, UK, USA
categories: General market development
Evi Choursanidi
Evi Choursanidi more

> Sony to cut PS3 price, bundle games software


At the recent E3 show Sony Computer Entertainment America (SCEA) announced a $100 price cut on the 60GB PS3, bringing it down to $499. At the same time, the company revealed the launch of an 80GB model, designed to facilitate its plans to eventually offer hi-def movies and games for download. The new model will be available from mid-August at a price of $599 and will be bundled with online racing title MotorStorm. Subsequent reports indicate that the 60GB model will be phased out after existing stocks are exhausted.

Sony Computer Entertainment Europe (SCEE) is taking a different approach in the PAL territories (primarily Europe and Australia/New Zealand). There is to be no 80GB version at this time, nor is the price of the existing 60GB model to be cut. Instead, it is to be bundled with two controllers (the standard offer is just one) and two games, the exact titles of which will vary to reflect to local preferences.

Our take...
The pricing and bundle announcements from SCEA and SCEE were received with a mix of relief and frustration by the industry. A price drop before the end of 2007 had been expected for some time and indeed Screen Digest had already built it into its Games Intelligence forecasts, but the bundle offer for the PAL territories is disappointingly weak and is not expected to affect hardware forecasts.

The timing of the price cut in the US to $499 is in line with previous PlayStation first reductions in the lifecycle. This time around though, the introduction of an 80GB version at $599 and the implied phasing out of the cheaper 60GB SKU will leave new consumers having to pay the same price to access the PS3 experience. Total future sales of the 60GB version will be equal to quantities in SCEA warehouses or in trade. Of course, SCEA could, before Christmas, drop the price of the 80GB to $499 to retain the price reduction trend to maintain demand.

In Europe, the offering is confusing and consumers may be right to feel aggrieved at not having a cheaper PS3 in stores. The bundle is good value for money for new entrants who want the two titles and an extra controller but the price is still €599 to get into the market so we do not anticipate any immediate fillip to sell-through trends.

SCEE has hinted that this is a summer only offer. It has also said that the 60GB version will remain for PAL until supplies for the 80GB are improved to fill all three region's pipelines. A cheaper console is therefore still on the cards for the last quarter but an improvement in sales is unlikely before then.

Price is of course an obsession of analysts but not the primary reason for buying a console. PS3 still lacks a quality catalogue of software which would make the whole proposition more compelling and there is no evidence that Blu-ray Discs (BDs) are providing a significant incentive to hardware purchase. When consumers can start to compare consoles playing the same triple A title, then PS3 sales may start to accelerate, although the very presence of these titles may reduce the demand for BDs among gamers.

For detailed forecasts and analysis of PS3 and other games consoles, see Screen Digest's Games Intelligence service.


> Analyst, market intelligence & notices
(213) 1-15 showing [more]
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published: 03-Jul-08
territories: France
categories: Market data/forecast revision
Marie Bloomfield more

Warner offers iTunes digital copy for 10,000 B.C. secure

published: 02-Jul-08
territories: UK
categories: New product/service
Sarah Johnson more

UK video data finalised for 2007 secure

published: 25-Jun-08
territories: UK
categories: Market data/forecast revision
Marie Bloomfield more

Spanish DVD rental forecasts reviewed secure

published: 17-Jun-08
territories: Spain
categories: Market data/forecast revision
Marie Bloomfield more

Spanish video retail data refined and finalised for 200... secure

published: 17-Jun-08
territories: Spain
categories: Market data/forecast revision
Marie Bloomfield more

Decline in DVD rental slows in 2007 secure

published: 16-Jun-08
territories: Germany
categories: Market data/forecast revision
Marie Bloomfield more

German Blu-ray business booming in 2007 secure

published: 16-Jun-08
territories: Germany
categories: Market data/forecast revision
Marie Bloomfield more

Solid 2007 results for German DVD retail business secure

published: 13-Jun-08
territories: Germany
categories: Market data/forecast revision
Marie Bloomfield more

BD hardware range broadens and entry-level price point ...

published: 11-Jun-08
territories: USA, Australia - Europe, Western Europe
categories: New product/service
Richard Cooper more

Blu-ray Disc market shares added to Video Intelligence secure

published: 04-Jun-08
territories: UK
categories: New market data/forecast
Marie Bloomfield more

Disney to offer DVD and digital bundle secure

published: 30-May-08
territories: USA
categories: New product/service
Sarah Johnson more

Video spending increases marginally in Q1 2008 secure

published: 29-May-08
territories: Germany
categories: Market data/forecast revision, Regulatory/legal development
Marie Bloomfield more

Netflix partners Roku to launch set-top box secure

published: 21-May-08
territories: USA
categories: Content deal
Sarah Johnson more

HBO shows available through US iTunes store secure

published: 15-May-08
territories: USA
categories: Content deal
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DVD hardware sales fall in 2007 secure

published: 13-May-08
territories: Australia
categories: Market data/forecast revision
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> Reports
(2) 1-2 showing
European Digital Terrestrial Television: Market assessm... secure

The latest report from Screen Digest provides a detailed analysis of the European digital terrestrial television (DTT) market in 15 Western and 4 Eastern European markets. The report includes historical and five year forecast household and penetration data for free, pay and top-up DTT as well as penetration numbers for cable, DTH and IPTV.
published: 21-Jan-06
territories: Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Russian Federation, Serbia & Montenegro, Slovakia, Slovenia, Spain, Sweden, Switzerland, UK, Ukraine - Central and Eastern Europe
Guy Bisson more Chris Dziadul more

A strategic analysis of the US and European markets secure

This report gives the first detailed analysis of the rapidly growing online rental markets in 7 key western European territories in Europe and the US. Included are profiles of the key players in each territory, analysis of business models and metrics as well as market forecasts to 2009 for each territory.
published: 15-Nov-05
territories: USA, UK, France, Germany, Spain, Italy - Benelux
Helen Davis Jayalath more Angus Wood more

> Articles
(72) 1-10 showing [more]
Rental windows reign in Spain secure

The decline in DVD rentals has enoucraged the reintroduction of an exclusive window
published: 17-Jun-08
territories: Spain - Western Europe
Marie Bloomfield more

Australian rental bucks trend secure

Against global trends, video distributors enjoy another bumper year down under
published: 17-Jun-08
territories: Australia
David Scott more

Video games inspired by Hollywood secure

Two thirds of the all-time top 200 movies have been turned into games—but with no certainty of success
published: 15-May-08
territories: France, Germany, UK, USA - World
Tony Gunnarsson more

Blu-ray hardware prices increase secure

Since the end of the hi-def format war, manufacturers are pushing up hardware prices
published: 15-May-08
territories: USA
Richard Cooper more

DVD manufacturing-on-demand secure

DVD replication is suited to the on-demand model. Burn times have been reduced and the cost of components has fallen, so it is now a relatively quick and affordable procedure. The development of selfcontained replication units has made it possible for DVDs to be manufactured on-demand, and on-site, in retail stores and warehouses.
published: 23-Apr-08
territories: Italy, France, Germany, UK, Spain, USA
Marie Bloomfield more

Video Rental Fades Into History secure

Most consumers now prefer to own video rather than rent, as our 15-year analysis shows
published: 23-Apr-08
territories: France, Germany, Italy, Japan, Spain, UK, USA - Europe
Helen Davis Jayalath more

Campaign changes views on piracy secure

A change of approach in the UK in the way to persuade consumers against pirated video has had a measurable effect
published: 26-Mar-08
territories: UK
Marie Bloomfield more Tony Gunnarsson more

DVD down under soars up and over secure

Australian retail sales top other mature markets, with TVDVDs in particular driving 30 per cent growth
published: 22-Feb-08
territories: Australia, Japan, UK, USA
David Scott more

US cinema-to-DVD window stabilises secure

The rate of reduction in the average time between theatrical and DVD release has slowed
published: 22-Feb-08
territories: USA
Marie Bloomfield more

Warner changes hi-def landscape secure

Warner's intention to switch to 'exclusive' support is a coup for Blu-ray Disc and a blow for HD DVD, and might signal the end of the format war
published: 23-Jan-08
territories: USA - World
Richard Cooper more


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