Surprise PS3 news from TGS [update 4]

by Vladimir Cole on Sep 21st 2006 11:59PM

Right after delivering a keynote address that can best be described as uneventful, Sony Computer Entertainment CEO Ken Kutaragi was interviewed by a well-known Japanese reporter and let drop two new details that Kutaragi called "secrets."

First: the basic PlayStation 3 will retail for under ¥50,000 in Japan, 5% consumption tax included. Kutaragi quoted a price of ¥49,800 for the console. The announcement met with more enthusiastic applause from the audience than anything said or shown during the keynote in the hour prior. Does this indicate that the PS3 may be up for a price reduction in the United States? (In today's dollars, ¥49,800 yen is approximately $425 USD. The same version of the PS3 has been priced at $499 in the US.)

Second: In answer to a question about HD capability, Kutaragi noted that in the days since the E3 press conference, "the importance of HDMI has come earlier than expected." At the time of E3, no television included HDMI support, said Kutaragi. In the months since, however, HDMI has solidified and has been introduced to more products. Therefore, Sony has decided to include HDMI in the console.

[Update 1: fixed a typo, added photograph.]

[Updates 2, 3: Sony just posted this press release confirming the price drop (Japan only) and HDMI-support. Word in the press room is that HDMI support for the lower-priced console is worldwide. The press release is in Japanese only for now.]

[Update 4: Sony has just released an English-language translation of the same information. Click "continue" below for the full text of that release.]

Press release from Sony:

"PLAYSTATION(R)3 HDD 20GB Equipped With HDMI as Standard

Recommended Retail Price of 49,980 Yen (Tax Included) in Japan

TOKYO, Sept. 22 /PRNewswire/ -- Sony Computer Entertainment Inc. (SCEI)
today announced that PLAYSTATION(R)3 (PS3) with 20GB hard disk drive (HDD)
will come equipped with HDMI(*) (Ver 1.3/supporting Deep Color) output as
standard with the system. PS3 with 20GB HDD will become available in Japan at
a new recommended retail price of 49,980 yen (tax included).
(Logo: http://www.newscom.com/cgi-bin/prnh/20020701/SFM066LOGO )
Since SCEI first announced product specifications of PS3 at the Electronic
Entertainment Expo (E3) in May 2005, demand for enjoying full HD quality image
and realistic digital sound through HDMI has grown tremendously. Given the
sharp increase in availability of flat displays supporting HDMI in the market,
SCEI has decided to equip HDMI as standard on all PS3 systems.
SCEI, with strong support from software developers and publishers, will
offer a broad lineup of exciting and innovative titles and vigorously promote
the PS3 platform.
(*) High-Definition Multimedia Interface

About Sony Computer Entertainment Inc.
Sony Computer Entertainment America Inc. continues to redefine the
entertainment lifestyle with its PS one(TM) game console, PlayStation(R)2
computer entertainment system, PSP(R) (PlayStation(R)Portable) system and the
upcoming, much-anticipated PLAYSTATION(R)3 computer entertainment system.
Recognized as the undisputed industry leader, Sony Computer Entertainment
America Inc. markets the PlayStation family of products and develops,
publishes, markets and distributes software for PS one game console,
PlayStation 2 computer entertainment system and PSP system for the North
American market. Based in Foster City, Calif., Sony Computer Entertainment
America Inc. serves as regional headquarters for all North American operations
and is a wholly owned subsidiary of Sony Computer Entertainment Inc. More
information can be found online at http://www.us.playstation.com."

Tags: PS3, TGS, Xbox-360

Reader Comments (114)

Very welcome and unexpected news. I hope the cut is across the board, if they hope to capture the hearts and minds of American and European gamers.

Well i preordered my Wii the other day and the PS3 will only interest me when the price halves, but it is very good to see Sony taking a step in the RIGHT direction for the first time in months.

I hope there is a price reduction, so people can be quiet about the price for once.

HDMI!!!!! AND Price drop to $427 including TAX for 20GB PS3. SOLD!!!!

Wow... that's actually good news! Woot, sony!

No TV supported HDMI at E3? Where the hell has he been? Sony's own TVs have had HDMI for about two years now. *Rolls eyes* They just continue to confuse me.

ZOMG!! *dies*

I doubt the cost cut is for all regions Japan usually gets consoles at a cheaper price. Wii is 212 in Japan and in the USA is 250 xD

I have no interest in video game consoles and their prices. I like going to the opera. When will they make a video game about the opera?

I would say it just means the $600 one comes with an HDMI Cable...mooohoo

Somehow, some fool will still find a way to spin this in a negative light. Nevertheless, its a good move and I hope this is for the U.S as well. Now, some info on launch games please!

Nice HDMI support, sweet. also this thing actually has a affordable price tag, i think im in for some MGS4 and GT5

Wow, IF true good news on both counts.

Kudos to Sony from Joystiq's biggest microsoft troll.

Even if we don't get the lower price, now I can safely buy the 500.00 unit, if I can find one. Hope that 80/20 ratio isn't true!

Rhine: the thing u have to remember about the wii price in japan is that their version doesn't include a game. and this is an official price cut...its not like they're just now announcing the price of their console

Are you guys going to Japan to buy the console? It would be suicide for them to cut the pricing. Not to the consumer, but that would send a horrible message to Wall Street.

The price in the US and Europe will not change for a while.

furkin shnit!

Good news... but they need to just take the losses and give the PS3 (low end) for the same price that the 360 premium launched for. Then they'll have a good shot of staying on top this generation.

I think sony could really grab people's attention with a 50-100 dollar cut on the american price. It makes the difference between the xbox a lot less of a bother. Regardless of the fact that Kutaragi is a bit ignorant to the opinion of the gamer, hes right about the fact that the ps3 is a good deal for the price. A 50 dollar cut would let gamers know that sony is responsive to there customers while not hurting the bottom line too much.

Hmm... This is interesting.

For reference, the originally planned price for the PS3 in Japan was 59800 yen. That's a pretty big price drop.

Source: http://www.gamespot.com/e3/e3story.html?sid=6149470

IGN is confirming both rumors and Kotaku is confirming the HDMI one.

Sources: http://uk.ps3.ign.com/articles/734/734010p1.html
http://www.kotaku.com/gaming/top/rumor-20gb-ps3-gets-price-drop-hdmi-port-in-japan-202443.php

Really interesting developments. This is certainly a good public relations move, which is something that hasn't happened to Sony in a long time. Let's hope this carries over to North America.

$425 and HDMI port...There are going to be some pissed off individuals in the morning. I'm getting the 20GB model now and upgrade the drive to 100GB or more.

The customers have demanded change and Sony has delivered.

...this clearly needs to be clarified...

Clearly

:)

People... This is the price in Japan... Sony has NOT decreased the pricing in the US... They may still do that...but personally TGS keynote may have been a good time to bring it up.

I wouldn't get your hopes up.

I bet Sony announced the original pricing early to prevent Microsoft from planning a price drop this fall and it worked. They planned to originally price it at the $499 with a Spring 2006 launch, but the delay has resulted in them being able to drop the price and shock the competition. This is just solid, but its going to be impossible now to get one at launch.

they need to define what this means...

by HDMI do they mean they are including HDMI cables with premium? Adding HDMI output to core? What does it mean?

Also, was that price announced yet in Japan? Is this a price drop or the first they've heard of it? Also, is this worldwide or just in that region?

P.S. Why is it a big deal that the price is including tax? They have a national sales tax, which makes it easy for companies to quote a tax inclusive price. I believe almost every advertised product there has tax included in the advertised price.

Let's see ms do a software update for the hdmi port, the 20gb PS3 for 425.00, with hdmi I might add, just owned the premiun xbox 1.5. I'm still getting the 600.00 eventhough a price drop would be nice. The 360 officially is now the xbox 1.5, sony is going to rape ms.

PS Robert Summa now this is something that's definately worth staying up for.

@ #22:
No, only pissed off fanboys. Regardless of what console you favor, we should all hope this is true news for the US. Cheaper console prices are good for us all, if not for the competition that ensues. Now, let's see the games, and hope the preorders begin soon.

Meanwhile back in reality:

NO mention of how the online will work. NO mention of how microtransactions will work. NO mention of anything concrete.

And Ken specifically says in the Q&A that the US is fine with the price, but that Japan raised a fuss, so here's a price cut! Sweet!

dbx00

ms already dropped the rpice in japan.

u get a core and 2 games for 249.00. this was in response to that i belive

aceregan

Including tax is huge because it's $425 with tax, which might translate into a $399 US price. Even if they don't do a full price drop in the US, you can expect something close to the $425 and since it has the HDMI port it becomes a more viable option.

the 360 price drop got overshadowed by the 1080p news.

core for 249.00 and it comes with 2 games.

Wasn't the 'core' PS3 always $500? Am I missing something here? If we're translating directly based on exchange rates like the Joystiq article does, I wouldn't count on it. 100 Yen usually stays 1 dollar US despite the exchange rate. For example, because Nintendo has a really good control of their spending and intake, they can see the US difference as a random factor of gaining even more (if yen is weak) or worse (if yen is strong).

Also, HDMI I'm not really worried about, but have they done something like INCLUDED IT in the $500 version?

If true, good news for fans either way.

For $400 and HDMI call one sold from me!

Well, a $425 price tag for the PS3 might see me buy one sooner than it's one year anniversary. But I'm not going to hold my breath that this price point is going to reach the states.

8:22 PST: If you're concerned about the HDMI inclusion in the 20 GIG version of Sony's PS3, SCEA confirmed to 1UP (after hearing Kutaragi at the press conference) that all versions of the PS3 would have HDMI.

SCEA just revealed to 1UP that the price drop in Japan is for that territory ONLY. The pricing structure in the U.S. has not changed.

Good luck getting one anyway.

I see it this way - most places will not take pre-orders due to low availablitiy (our stores are getting 2 systems each (max!)(national chain)) Due to the no pre-orders many retail employees will take advantage of this (no obligation to sell to customers) and ebay they things for your soul.

I believe that the US is getting the low end version of the PS3 for $449.99 and the higher end one for $549.99. The HDMI trick was planned from the beginning, they spend les than a dollar to make the connectors and they save who knows how much on using only one mold to fabricate the PS3 shell, instead of two just for the fun of disabling HDMI from a console which is design to output through it. If I had the money, I'd buy a PS3 on launch day. Even after a $50 price reduction, the PS3 is an expensive machine. I'm waiting for early next year, so Blu Ray standalone players get the the below 200 mark, then I'll decide if I buy the BR player or a PS3.

...this clearly needs to be clarified...
----------------------------------------

People in Japan buy Mig Mac with Yen
People in the US buy Big Macs with Dollars

The PS3 20G in JAPAN will run the Yen equivilant of 425 dollars
The PS3 20G in the North America will run the dollar equivilant of $

Which mean kids... 500,000 units will be sold on ebay for 1,000 dollars each...

"NO mention of how the online will work. NO mention of how microtransactions will work."

Exactly. I find that to be interesting as well. This is nothing more than a smoke-screen manuever.

If anything, this only raises the stakes even higher for Sony. You either raise or fold here. Sony should have dropped he price to match the premium 360 or just fold and stand your ground.

Considering how much more money Sony will now lose because of this price drop, Sony is playing bad poker here. They've thrown more money into the pot having a bad hand to begin with.

I don't understand the comment about televisions not including HDMI support prior to E3. The TV I bought last year came with HDMI support. Don't most of all new TVs have it now?

Right on Sony ¡¡¡ Right on ¡¡¡

Im so excited about PlayStation 3 :)

How the hell are they going to pay for this? They are already losing over 300 USD for every system sold. Now they are losing more?

If only Sony would give us some concrete online plays my 360 might end up with a PS3 to play with. I just need to know that there will be a system at least on par with Live.

This has nothing to with America.... Anybody thought that they might be doing this to Japan since their getting the short hand of the stick with the launch? 100,000 units is like a kick in the balls and its your own country, so I feel like Sony did the right thing for their fellow countrymen(and women).

The original delay was because the bluray media wasn't ready(among other problems Sony will not admit to), not because they wanted to make it cheaper before launch. It would of been Sony's dream to come out with the PS3 before the Samsung Blu Ray player because that would mean that people would have the PS3 for Blu Ray instead of the Samsung player.

Everybody thinks they know it all since they're behind a keyboard, but I have only stated opinion. But seriously this has nothing to do with America as of now.

I'm still betting on 1400 ebay pricing. pricing means nothing to me until the product is readily available.

I think this may have more to do with the amount of HD-DVD ad's being run recently (plus anyone who's reviewed the drives says the blu-ray has read problems from time to time.. the HD-DVD has less trouble maybe their magical anti-steel wool coating is too reflective or doesn't work as well as anticipated also that same coating COULD be used on HD-DVD or even regular DVD or cd's that would be the best for consumers but bad for the companies trying hard to push us into the super duper mega disc formats (I think movie discs will start major phase outs in 2-3 years anyways. as does another big 'evil' company that people like to spell as a two characters ending with a $ (ooohhhhh that will show them......)

Still want the $599 model next to my 360. But I still think the 360 will be more popular in the US, Europe and Australia than the PS3.

@ahigee

Dude, STFU.

PWN.

so they're loosing how much on each console now... that means they expect to make double or triple that back from the discs

Why do you people need a HDMI port? Component does 1080p for games and 1080i for movies.

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Surprise PS3 news from TGS [update 4]

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