Why do Some Predict the PS3 Slim Will Be Cheaper?

Kris Erickson • Jul 8, 2009 • Comments (8)

There is a persistent rumor, almost as persistent as speculation about the PS3 slim itself, that when the new slimmed-down console arrives it will be cheaper than the existing PS3. Like one of those grand, all-encompassing conspiracy theories that has the lizard people cavorting with the same guy who shot JFK, this rumor neatly ties together the rumored PS3 price drop on one side, and blurry photographs purporting to be the PS3 slim on the other. The argument goes that efficiencies won by combining components on the main board to accomplish the same processes with fewer parts makes production of the new device cheaper. This notion has been further fuelled by the fact that early leaked production pictures of the alleged PS3 Slim didn't look as shiny or well, expensive, as the current model in all of its chrome-encrusted glory.

leaked images from a Chinese factory apparently show the new PS3 Slim packaging.

The problem is that - as the PSP Go has shown us - smaller and cheaper rarely go together. Consider that when the Slimline PS2 originally launched in September of 2004 it cost $149 USD, the exact same price as the original model PS2 (which had been given a price drop before E3 that year to compete with the Xbox). Also at that time, there were already 72 million PS2 units in households all over the world, meaning that Sony saw it as an aesthetic improvement with functional upgrades rather than a way to drop the price of the core unit. Over time, the PS2 slimline retained its premium price, while the phat version was discounted in shops. If anything, we would expect that the introduction of a PS3 slim model would cause the price of existing stock to go down, but we are highly suspect of any price reduction in new hardware. Since Backwards Compatibility and a few USB ports were removed in the budget version, there really isn't anything left for Sony to cut from the existing configuration to make it cheaper. And no, unlike apartments and diamonds, processors do not get cheaper when they get smaller. This could be a major reason why Sony was reluctant to show off the PS3 slim hardware at E3, fearing that price, rather than size, remains the number one issue for consumers.

Holding out for a price cut on the PS3 phat makes sense, because it is rumored that Sony will be forced to lower the price sometime early this fall due to competitive pressure and to clear out stock in anticipation of the PS3 slim. But thinking that the thinner PS3 hardware will somehow combine aesthetic improvements and a smaller form factor with a lower price tag is purely delusional.

Have your own prediction about the PS3 Slim? Discuss it on our PS3 message boards!

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Comments

Slick Rick

- July 8, 2009 10:42 AM

strange one this - i mean look at the box - its has a blu ray player - a massive hdd - i am guessing it will back cat too. I would have to say i expect the price on the veteran ps3 to fall and the slim to take it spot. I am gonna get a slim so long as it plays back cat games tho!

Jonah Falcon

- July 8, 2009 11:02 AM

Why? Because it'll have far cheaper components such as the 45nm chips. It will have less volume, and every slimform PS that's come out has been less expensive.

In addition, Sony is clearing stock to allow for a price drop across the board.

Johnno

- July 8, 2009 1:34 PM

Following the pattern of past new SKU releases, the price of the phat PS3 will drop maybe $50 ($100 if you're lucky) and the slim PS3 will debut at the current price point. While the slim may be cheaper to manufacture, startup costs will still be there. Besides Sony wants to start making profit on the machines so no big price drop across the board unless they can do so and still profit. The slim will be the one new single SKU going forward once the phats are liquidated. There will probably be some good bundle deals but that's the best you ought to hope for. It'll be another year until a price drop happens I think. Besides, whenever a new version of a product debuts, a lot of people buy it, so keeping it at the same price point makes a lot of sense at launch so they can make money.

Anyway in summary expect prices of the phats to be dropped a bit or bundled with great deals, and the slim debuts at the current price point replacing entirely the phat line. PSP GO is different because internal memory is expensive and it's a premium product aimed at DD enthusiasts who despite the myth that DD is cheaper, pay more for the convenience of storage space and the bandwidth so ironically they're the sort of people who spend more money. Besides I don't think GO will sell more than the 3000 model as the majority of people aren't that enthusiastic of digital only content unless it's something small, so PSP GO is a premium item.

blacksand

- July 8, 2009 1:37 PM

Sony know what there do that's why it wasn't a price cut. It's a lot of companies and people crying about sony and the price cut. I paid $700 for may 60GB when it frist came out nobody was saying price cut then. So i don't feel sorry. IF they want one K-mart do lay-way and Gamestop will let you pay on it until you get it. That's 2 ways for you,so people stop crying.

Anonymous

- July 8, 2009 2:15 PM

probably wouldnt be but should be

David

- July 8, 2009 3:35 PM

There is just so much wrong with your article. But primarily, the problem is that you are looking at it from only one perspective.

The PS2 as you pointed out had already sold over 70mil consoles by the time the PS2 slim was introduced. however, as you also pointed out the PS2 slim was priced at the exact price of its phat predecessor. The PS3 however does not have that kinda luxury.

Sony is not redesigning the PS3 to make it "more cutting egde" and thus warranting a higher price point. They are doing this to make it easier to manufacture and cost less so they could sell more consoles. That coupled with the free press they will get for the console redesign will practically mean that they are nothing short of relaunching the console.

I don't know where you got your facts from, but the PS3 is not the PSPgo.Theree are a lot of things on that platform that is unique to it which is why sony has positioned it as a premium model. Every smaller itteration on a main PS console cost sony less to make. So why will this be any different. The change from a 90nm process to the current 65nm process resulted in savings for sony on the PS3. The 45nm process, smaller drive, fewer components...etc will result in more savings for sony which they will pass onto the consumer by dropping the price.

craig

- July 9, 2009 7:12 AM

smaller processors do cost less as you can get more 45nm chips of a disc of silicone than 65nm chips which gives you more chips with rhe same amount of raw materials which lowers the cost per unit to manufacture

namekuseijin

- July 12, 2009 3:03 PM

Smaller chips *are* cheaper. And no, there's no aesthetic improvements: there are aesthetic downgrades, as the original designs are much better looking than the remodelled cheap plastics. PS1 looked like a true futuristic machine, PSone looked like $hit; PS2 looks like a block in any way; Sega Genesis too, had a terribly cool original design and in later years got an ugly-looking hack as excuse for hardware coating...

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