Posted on July 10, 2007,

SCEA President Asked “Why?” Concerning PS3 Price Cut

Kotaku caught this video of SCEA’s President Jack Tretton getting grilled on CNBC yesterday on the reason why Sony decided to cut the cost of the PS3 by $100.

In the interview, Tretton does a pretty good job of avoiding the “Why?” question and barrels through his sales pitch to the world. Eventually, Tretton states that the reason why Sony decided to cut the price of the PS3 is because the American consumer loves to save money. Wow. That has to be the worst explanation concerning a price cut I have ever heard. He could have went so many ways with that. Maybe saying production costs have been reduced, or it was done to compete with the other more affordable consoles. But to say they cut prices because Americans love to save?

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10 Comments on SCEA President Asked “Why?” Concerning PS3 Price Cut


On July 10, 2007 at 10:16 am

I think thats the truth, 600 $ for a next gen console – blue ray player its a good deal. People expect too much for little money.
600$ its the price of a video card…
and 600$ , well, if the ps3 in argentina were at that price i would buy one, here costs more than 1000$ so dont complain


On July 10, 2007 at 10:18 am

Why the surprise? He said ” American consumer loves to save money” and that’s the only explanation possible!

Just look at the rest of the world! Europe ou Australia is buying more consoles than US and it is more expensive here!

So yeah, if you visit american blogs, american sites and are paying attention to american users posts you’ll realise that you are all a bunch of spoiled little brats that don’t stop complaining about prices! Jack Tretton couldn’t have said it better!

Jeezzz I really don’t know why you say it’s the worst explanation when indeed it IS the explanation. Just look around, every single american is crying because PS3 is allways too expensive, maybe you shouldn’t spend so much in wars… :\


On July 10, 2007 at 10:28 am

Read the bottom line, Sales were in the toilet, and sony needed to boost some sales, this is a last ditch attempt and they are desperite for their share in the market before it slips any deeper. Any good company will never admit defeat or poor productivity. They will always paint a good picture and forcast for what ever they sell. Sony or moneysoft would ever admit their sales or product was poor. So i dont blame Sony for the reason. But it is true we all like to save money, American or not. a $100 in my pocket is better than in Sonys or Moneysofts.


On July 10, 2007 at 10:28 am

What I was trying to get at was that the explanation was vague. It’s inevitable that Europe will receive a price cut as well. What will Sony’ explanation be then, Europeans love to save money? Why doesn’t Sony just come out and say the world loves to save money. And don’t take this as a fanboy comment because I own a PS3, I just thought his explanation could have been better than stating the obvious that human beings love to save money.


On July 10, 2007 at 10:49 am

I love to spend money :mrgreen:
Bbut I get your point, about Europe having a price cut… i’m not so sure, Sony is selling well here, and the prices are very differents from Continents to Continents, but I bellieve they will compensate us somehow, maybe giving a free rumble controller to those allready have a PS3 and making bundles of hardware+Software.

I have a opinion about why Jack ansered like that, he probably responded to that “why” question about thousand times, so he feel he must say something different from time to time or he probably feels he’s repeting himself to often.


On July 10, 2007 at 11:13 am

Xboxlenny said – “Sales were in the toilet, and Sony needed to boost some sales, this is a last ditch attempt”

Of course the price cut has been done to stimulate sales but not because it isn’t selling well because it obviously is.

In it’s first 6 months the PS3 sold more than the PS1, PS2 and 360 did their first 6 months.

The PS3 SOLD 3.6 million whereas the 360 only SHIPPED 3.2 million.

Not my idea of sales being ‘in the toilet’

I also find it quite hilarious that you see this as a ‘last ditch attempt’ when it’s obvious that demand for this console is absolutely huge. The PS2 had 2 price cuts in it’s first year in the UK. I suppose they were last ditch attempts as well?

There are tens of millions of people who want a PS3 but are simply waiting for the price to drop. The same cannot be said about the 360. Whens the last time you heard someone criticize the 360′s price and say they will get one when the price drops like people are saying all over the place about the PS3? I’ve never heard it because quite frankly the general public couldn’t care less about it. In fact the only thing the average guy on the street probably knows about the 360 is that it’s unreliable.


On July 10, 2007 at 12:30 pm

Remember PS2′s numbers didnt’ start to take off until it really hit under $200. That’s when most of the units sold were moved. And of course this is not quite a last ditch effort but it certainly is an unusal cut this early in the product life cycle.


On July 10, 2007 at 12:35 pm

As for my earlier comments they are from the sony stand point. Compare sony sales to the Wii and even 360 now. not release day. I cannot help it if sony systems are collecting dust on shelves.

Sony are not blind, they know when change is needed. They are top of the game in may ways and i support their efforts. Like any business or product, if its not selling well a price cut is needed. If the PS3 was selling like the Wii, would there be a price cut? NEVER!

Sony wants to sell as many PS3s at they can, like Moneysoft also. I dont need Statistics or sales figures, all i have to do is go to Bestbuy and look at the Dusty sony machine thats been there 3 months. Sony knows it, and You know it. The sales were less than expected so a price drop was needed to boost sales, any one can see that, and its the bottom line. I personaly dont care who sells what machines, I dont work for Moneysoft or Sony or Nintendo, I dont see a dime from them, they only take my money. and Norbit is right, the same cannot be said about the 360, because millions of people already have a 360 it. dont be such a fanboy. when u work for sony, then care.


On July 10, 2007 at 2:30 pm

Xboxlenny I’m simply correcting your incorrect statements. The PS3 is not selling badly but for some reason you keep saying it is.

How can selling faster than a console that was specifically designed to steal your sales be bad?

I love your statement that you “don’t need Statistics or sales figures” because looking in your local shop is obviously a far more accurate way of judging the international sales of a console. Stupid things like stats, reality and the truth tend to get in the way of your arguments so you just ignore them eh?.

Of course Sony cut the price to increase sales but not because it’s selling badly. There are only a certain amount of sales you are going to get at a particular price point and when those sales slow you drop the price. It’s what every manufacturer does and is in no way an indication of bad overall sales (which is obvious because the overall sales aren’t bad).

BTW This statement is great:

“I personally don’t care who sells what machines”

So why do you keep making factually incorrect posts attacking Sony sales then?


On July 10, 2007 at 4:46 pm

i am not stating any facts or sales figures. there is websites that keep track of that and i am aware of those. vgcharts and nexgenwars keep a good track of who is selling what. look at the numbers, they dont lie. of course a few PS3s on the shelf of Best Buy dont determine anything, I am not that simple.

of course sony will sell millions of more PS3s. It is just a matter of time. Any comment made here are my oppinions and many wrong or right. that is what comments are for. I appolagise for any misconceptions. I personaly like the sony product, they make good products, I would recommend any sony product over many of their competitors. I enjoy getting a debate going and it gets people involved.

I have owned a PS one, PS2, and I own a PSP which i play daily. as well as many other sony produts. They have a better product than Moneysoft does. the red ring of death. thats garbage. but back to the topic, most peole want to save money so the price cut will bost sales for the hurtin PS3. and who knows I may even buy one. No worries take care.