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Kaz Hirai, the President and CEO of Sony Computer Entertainment America firmly believes in the pricing of the PS3 and he wasn’t afraid to defend Sony’s expensive console in a recent interview with British consumer website, SPOnG.
"I think the original price-point was the right price-point, evidenced by the issues we had at launch when we couldn't supply enough units to consumers in the Japanese market and the North American market, and it was a huge challenge to try and meet that demand because of all the production issues we had.â€
"It wasn't a pricing issue, it was a supply issue. Fortunately for the European launch, we were able to bring enough units to meet that demand, as well as supply a robust software launch. We had a lot more success in the European market because of the sheer number of hardware units as well as the software titles we were able to bring."
Hirai went on to say, "When we started this business, we started from zero. We were a nobody. We had a zero installed base with the original PlayStation and we worked our way up from there. When we launched the PS2, the Dreamcast had a head-start and they had an installed base and we had to ensure we caught up and surpassed.â€
"We're in a position where we're having to play catch-up here. The PS3 has been on the market less than a year in the US and Japan and, what is it, less than that in Europe? It's difficult right now to say who's where. Five years from now, ten years from now, you look back and can see what kind of business you've generated. So, clearly we've never started from a position of strength and we've always had to catch up with every generation of hardware that we've brought into the market."
That’s a pretty decent argument. Rather than just wild conjecture, mud slinging and braggadocio, he sites precedent (if only gamer fanboys argued this way) to make his case.
On the other hand, while talking about the overwhelming demand for the console, Hirai doesn’t explain away the discontinuation of the 20 GB PS3’s (reportedly discontinued due to lack of interest in the U.S.), nor does he explain why (if the high console price is indeed justified) Sony would even bother releasing the all but unconfirmed, cheaper 40 GB PS3’s, which may be hitting store shelves before year’s end.
"I think the original price-point was the right price-point, evidenced by the issues we had at launch when we couldn't supply enough units to consumers in the Japanese market and the North American market, and it was a huge challenge to try and meet that demand because of all the production issues we had.â€
"It wasn't a pricing issue, it was a supply issue. Fortunately for the European launch, we were able to bring enough units to meet that demand, as well as supply a robust software launch. We had a lot more success in the European market because of the sheer number of hardware units as well as the software titles we were able to bring."
Hirai went on to say, "When we started this business, we started from zero. We were a nobody. We had a zero installed base with the original PlayStation and we worked our way up from there. When we launched the PS2, the Dreamcast had a head-start and they had an installed base and we had to ensure we caught up and surpassed.â€
"We're in a position where we're having to play catch-up here. The PS3 has been on the market less than a year in the US and Japan and, what is it, less than that in Europe? It's difficult right now to say who's where. Five years from now, ten years from now, you look back and can see what kind of business you've generated. So, clearly we've never started from a position of strength and we've always had to catch up with every generation of hardware that we've brought into the market."
That’s a pretty decent argument. Rather than just wild conjecture, mud slinging and braggadocio, he sites precedent (if only gamer fanboys argued this way) to make his case.
On the other hand, while talking about the overwhelming demand for the console, Hirai doesn’t explain away the discontinuation of the 20 GB PS3’s (reportedly discontinued due to lack of interest in the U.S.), nor does he explain why (if the high console price is indeed justified) Sony would even bother releasing the all but unconfirmed, cheaper 40 GB PS3’s, which may be hitting store shelves before year’s end.
