Tretton: PS3 price is a challenge but content will justify it

Sony U.S. boss Jack Tretton admitted that the price point of their high-end Sony PlayStation 3 game console is “a challenge,” but he says that the content of games in the platform will show gamers that the machine is worth every penny of the US$ 600 that it charges.

“There’s no question that that’s a challenge. Hopefully content helps to deliver the proof points and the justification behind the cost of the machine,” he says.

The justification that Sony is talking about comes in the form of more than 15 exclusive titles that they promise will exhibit the power of the PS3. Among these are Heavenly Sword, Lair and MLB: The Show. It can be recalled that in the not so distant past, Sony dominated the game industry on the strength of big franchises running exclusively under its banner. Things have been shaken up a bit, though, as former stalwart franchises Devil May Cry and Grand Theft Auto have opted to develop for rival Xbox 360 as well.

Analysts say that the decision of Sony’s management to add a Blu-ray player to the PS3 is what makes the console so expensive not only for consumers but also for the company. Experts say that with every PS3 unit sold, Sony loses US$ 150. It was a gambit they were willing to take in the belief that the PS3 is the key to the proliferation of their high-definition format.

And even though Sony registered big losses in the last fiscal quarter, analysts aren’t counting the PS3 out just yet. They say that once the chips and other PS3 components become less expensive, there should be a rate drop, which may attract more buyers. This, coupled with the launches of the next fiscal year, may be the spark plug that Sony is looking for.

Sony U.S. boss Jack Tretton admitted that the price point of their high-end Sony PlayStation 3 game console is “a challenge,” but he says that the content of games in the platform will show gamers that the machine is worth every penny of the US$ 600 that it charges.

“There’s no question that that’s a challenge. Hopefully content helps to deliver the proof points and the justification behind the cost of the machine,” he says.

The justification that Sony is talking about comes in the form of more than 15 exclusive titles that they promise will exhibit the power of the PS3. Among these are Heavenly Sword, Lair and MLB: The Show. It can be recalled that in the not so distant past, Sony dominated the game industry on the strength of big franchises running exclusively under its banner. Things have been shaken up a bit, though, as former stalwart franchises Devil May Cry and Grand Theft Auto have opted to develop for rival Xbox 360 as well.

Analysts say that the decision of Sony’s management to add a Blu-ray player to the PS3 is what makes the console so expensive not only for consumers but also for the company. Experts say that with every PS3 unit sold, Sony loses US$ 150. It was a gambit they were willing to take in the belief that the PS3 is the key to the proliferation of their high-definition format.

And even though Sony registered big losses in the last fiscal quarter, analysts aren’t counting the PS3 out just yet. They say that once the chips and other PS3 components become less expensive, there should be a rate drop, which may attract more buyers. This, coupled with the launches of the next fiscal year, may be the spark plug that Sony is looking for.