20GB PlayStation 3 going out of production
Sony will focus on 60GB model for North American market
By Susanne Ault and George T. Chronis -- Video Business, 4/11/2007
|
|
Sony Computer has decided to stop production on this $499 model in North America to focus its selling energies on the higher capacity 60GB PS3.
Although priced steeper at $599, the 60GB model has proven more attractive than the 20GB model since the PS3 launched in the U.S. last year, according to the company.
The 60GB PS3 is now the least expensive Blu-ray player available, at least until $599 set-top players are introduced this summer.“Initial retail demand in North America was upwards of 90% in favor of the 60GB SKU, so we manufactured and shipped-in accordingly,” Sony spokesman Dave Karraker said. “In addition to the larger internal hard drive, the 60GB PlayStation 3 features added storage media slots and built-in wi-fi not found in the 20GB system. Based on retailer and customer feedback, we have decided to focus our current efforts on the more popular 60GB model.”
‘Price sensitivity is gone’
Retailers, who were informed of this decision prior to Sony’s public statements, seem mostly fine with the disappearance of the 20GB model. They believe consumers, who were willing to pay $499, are likely to make the slight jump up to enjoy more advanced features.
“In consumers’ minds, there is no real gap between the $499 and the $599,” said Jayme Kruse-Cordie, Hastings director of video and interactive gaming. “After $499, the price sensitivity is gone.”
20GB inventory sold out
Hastings quickly sold through its 20GB stock by the first few weeks in 2007.
Other stores will likely still be burning off existing 20GB inventory, but many have already sold out of supplies. As of today, BestBuy.com and CircuitCity.com were not offering the 20GB model. Both sites were only selling 60GB stand-alone systems or 60GB software-enhanced bundles.
Walmart.com was listing the 20GB model as out of stock.
Many chains are simply pleased that supply has improved for PS3, regardless of which model they can offer. Tweeter had hoped to offer the game console during the fourth quarter but will now be able to start selling the product in early May, confirmed a company spokesman.
“We honestly just started fulfilling the pipeline with PS3 in the last four weeks,” Hastings’ Kruse-Cordie said. “Now we can start letting customers know that we will have it on a regular basis.”
Michael Pachter, an analyst at Wedbush Morgan Securities, remains skeptical about Sony killing 20GB production. Most consumers are not wired in their homes to fully use the benefits of the 60GB model, he said.
Pachter believes PS3 momentum slowed down in the U.S., as Sony geared all its marketing muscle toward the launch of the product in the U.K. on March 23. In the U.S., retailers have between 500,000 and 800,000 units of available PS3 stock, estimates Pachter.
“It was a conscious decision not to market at all in the U.S.,” said Pachter. “They were diverting supplies from the U.S. The only people now [that are up to speed on PS3] are the press and the hardcore gamers.”
Through March, Sony has shipped 6 million PS3 units worldwide, according to reports from Germany’s Cebit conference.
