MediaFile

Sony offers big PS3 price cut, if you can get the credit

November 25, 2008

With Black Friday only a few days away and projections for the holiday shopping season bleak, it’s not surprising that Sony is making a price cut move on its PlayStation 3 video game console to lure cash-strapped shoppers.

Now, you can get a hearty $150 price cut on the PlayStation 3 console. The caveat: you’ve got to sign up for a shiny new PlayStation credit card first.

There’s two ways to take advantage of the deal, it just depends how badly you want the PS3.

If you can’t wait to get your hands on the console, go to www.sony.com/newpscard to get instant approval for the PlayStation credit card and the visit the Sony Rewards site to purchase the PS3. You’ll receive a $150 credit for the PS3 after you’ve been approved for the card. What’s more, gamers who receive instant approval for the credit card will receive a coupon from Sony for a buy one, get one free offer on any Blu-Ray DVD purchase.

For those who are slightly more patient, sign up for the card at www.sony.com/getpscard and use it at any Sony retailer to purchase the PS3. The $150 credit will show up on the next billing statement.

The offer from Sony comes after rival Microsoft cut the price of its entry-level Xbox 360 console from $279 to $199 in September – but with no credit card sign-up required. Microsoft also lowered the prices of its mid-range and high-end Xbox 360 consoles by $50 each.

The price cut has reaped big rewards for Microsoft as unit sales of the Xbox 360 leapt 7 percent in October, according to the most recent NPD research report. The release of cult-classic “Gears of War 2″ will also bump sales during the holiday season.

But will the credit card offer lead to more sales of the PS3? It’s tough to predict as the offer is most likely to be available to those with good credit, rather than all interested PS3 buyers. Gamers with less-than-stellar credit ratings might not be able to access the offer as credit standards have tightened in the face of the global financial crisis. For more of Reuters coverage of the credit crisis, click here.

Sales of the PS3 have lagged behind the Xbox 360 and the Nintendo Wii since August. So will this offer help the Sony console edge out Microsoft?

(Reporting by Jennifer Martinez)

Comments
24 comments so far | RSS Comments RSS

Great for Americans. I called a Sony Store here in Canada but Sony is not doing this for us. Why not??

Posted by Laurel | Report as abusive
 

My math isn’t perfect, but I’m not so sure “The price cut has reaped big rewards for Microsoft”. If n people buy Xbox 360 at $279, then that’s $279 * n dollars for M$FT. If sales leap 7 percent at $199, then that’s $199 * n * 1.07, which is $212.93 * n dollars for M$FT. $212.93 is less than $279, which just makes M$FT desperate to deplete their inventory.

Posted by Jake Flittner | Report as abusive
 

There’s no WAY this would entice me to get a PS3. It today’s economy, why would anyone want to sign up for yet ANOTHER credit card and thus expose themselves to further financial risk?

Yet another in a long list of BAD moves by Sony where the PS3 is concerned.

Posted by Kendal | Report as abusive
 

This really looks like a scam. You can’t navigate to the deal page from any Sony site. Only from the link. The application page looks unprofession. There was a typo fixed the same day. I’m betting this is designed for idenity theft.

Posted by m | Report as abusive
 

jake, not only is you math not perfect, it would be a stretch for you to claim you understand anything about math. And your post proves it…….your best bet is to finish school and stop trying to apply grade school math to business problems you clearly don’t understand

Posted by go bsck to school | Report as abusive
 

your math is just fine the problem is its not 7 percent of the price its 7 percent of the sales. so if they sold 10 xboxs in a month and made a profit of 400 dollars the next month the profit would be 7 percent higher

Posted by tom | Report as abusive
 

PP, please explain your post. There is nothing wrong with Jake’s maths or logic – it is correct.

Why do you presume otherwise?

Posted by explain yourself | Report as abusive
 

What’s wrong with his math? … internet kiddies suck.

Posted by grad kid | Report as abusive
 

His math is fine, but Microsoft makes more money off of software than hardware, many times consoles will be sold at a loss, but they make up for it in software sales. More systems out there = more software being sold.

Posted by Explained | Report as abusive
 

Bad move on Sony — I don’t want another credit card– GUESS WHAT I FOUND OUT !!! Walmart will match any price on Black Friday NO MATTER WHAT — Just talk to a manager -print the AD and bring it in –WOW Thank’s Sony !!!!!!!

Posted by Ryan | Report as abusive
 

Great call Ryan. I wonder though if Wal Mart would stand behind it however?

Posted by ABHolton | Report as abusive
 

Um go back to school, I’m going to need you to go “bsck” to school. Don’t be so quick to judge.

Posted by really? | Report as abusive
 

How is this at all a bad incentive? Yes, you have to sign up for a credit card, but you also save $150. Pay of the remainging $250 on your first statement and cancel the card. Not a big deal at all. Easssyyyy Kendal.

Posted by JP | Report as abusive
 

As for the sales:

$279 to $199 is a 29% reduction in price. At that ratio, for every one MSFT could have sold at $279, they’ll have to sell 1.4 at $1.99. that’s a 40% increase in sales needed to compensate for a 29% reduction in price.

The thing is, they are probably still making some margin on each unit sold (and the article referenced per-unit sales, not gross sales revenue), and it’s often better to sell more inventory at a lower margin now than to sell less at a higher margin, even if the revenue isn’t as high for that product as a result. The decision probably had to do with MSFTs fixed costs and their time-value of money calculations.

They might not be happy about having to lower the price, but I suspect its about more than just moving inventory per-se. In fact, their fixed costs may be so low that their marginal revenue has increased enough to make the measly 7% sales increase enough to push up gross revenue.

Posted by DA6D | Report as abusive
 

Even when they give a discount they lie. In the fine print it reads: Final delivery price $284 80gb model $389 for 160gb model.The game division is built on lies and empty promises. I dont have any credit cards and i dont want any. If walmart honnors this price i would just sell it for the profit. This comming from a guy that owned 3 ps2′s with 40+ games And a PSP. They have lost respect and Creditability. Sony i want to love you agian but it has to be a 2 way street.

Posted by Dude | Report as abusive
 

Another thing you have to factor in is the interest rate the PS3 credit card is going to charge. Personally I find the PS2 to be the most cost effective console out there, as you can get one brand new for a little over a hundred, and they are still making games for it, games which are generally $20 cheaper than the games for the PS3.

Posted by Jordan | Report as abusive
 

Ryan, what ad do you print to take to Walmart so they would match the $150 savings??

Posted by Mark | Report as abusive
 

Ryan-
Wal-mart will not honor this as this is not a blackfriday deal, it is a deal to get people to get a credit card from sony, also offer expires 12/31/08 as it is a promotional deal for the card. You can get a Ps3 if approved for the card at that price and ONLY if approved by sony finacial.

Posted by Jeremy | Report as abusive
 

Well I guess if your rich you get to save 150 bucks. Nice :( but I dont think there are many people that really want a PS3 (that are wealthy enough), still sitting on the fence over a mere 150 bucks. Take 150 bucks off for the Walmart shopper Sony! No strings 250 bucks plus a game or two. Then the ability to play bluray and games… looks like fun and not a investment.

Posted by jay | Report as abusive
 

re: X-Box price cut; the difference is based on their profit, not the total price of the system.

So if they were already selling the units at a loss and hoping to make it up in software; then by lowering the price and increasing sales, they not only increase their loss per unit but increase their total loss even more due to the increased volume.

Posted by iAmACyborg | Report as abusive
 

This was NOT a black friday promotion. This is a credit card promotion that Sony has been running since at least last year. Depending on the month the incentive has varied from $100 to $150. When the offer expires this month it will be replaced/renewed by another offer.

Posted by Matthew | Report as abusive
 

I for one am not wealthy, and have been on the fence between the Xbox and the PS3. One of the biggest features for me in the plus column of the PS3 is the blu-ray dvd player. I have been wanting a game system for some time, as well as a Blu-Ray player.

If I were to go with the XBox we are looking at at least $400.00 for a decent system and maybe a game or two (probably bundled ones I do not really want), then add another $200 – 300.00 for a Blu-Ray player and I would be WAY over any budget.

The $150.00 discount from Sony is the real deal maker for me. I am going to take advantage of it.

Posted by Lee | Report as abusive
 

This article is NOT accurate. The credit is NOT posted on your next billing statement. The fine print says 8-12 weeks after approval which means that you do NOT get the PS3 for $249 at all. You get it for $399 and have to pay that price before receiving the credit on a future statement. You can then apply that credit to an additional $150 worth of purchases.

It’s a small detail, but if you thought you would buy the PS3, apply the credit and walk away having paid $249 for the system you are mistaken.

 

Just FYI
Found This on another site dated 3/17/09 …..

Sony senior vice president of marketing Peter Dille says “there are still no immediate plans to cut the prices of the PS3 consoles.”

 

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