$399 PlayStation 3 due in November
Supply expected to be tight for stripped-down model
By Susanne Ault -- Video Business, 10/8/2007
OCT. 8 | U.S. retailers are excited about a new stripped-down $399 model of the PlayStation 3, but stores are anticipating supply will be tight.
A PlayStation spokesman continues to not comment on an impending rollout. However, sources say stores are preparing to start selling a $399 model on or near the first week of November.
One major clue to the upcoming launch is a leaked late-October Best Buy circular that pictures the $399 PS3. A Best Buy spokesman declined comment.
Additionally, certain storefronts have been notified by Sony of a Nov. 16 advertising embargo for the $399 player. Such embargoes typically fall a couple of weeks following the shelf launch of new products.
Various news reports and bloggers expect the model to be 40GB, marking the lowest capacity available for the PS3, which is currently offered in $499 60GB and $599 80GB configurations.
Retailers expect the $399 model to feature a Blu-ray Disc player, but it will lack other features of the earlier models, including backward compatibility with the PlayStation 2.
Still, sources are chomping at the bit for a $399 PS3, believing it will finally make the console competitive with Microsoft's Xbox 360 and Nintendo’s Wii.
However, sources say they have been warned by Sony reps that there will be production limitations on the new $399 PS3. Sony is expected to put most of its energy into generating its higher-end models, as they offer a better return on investment.
“This will be a marketing splash as much as anything else,” said one source. “It will get their name out there and show [consumers] that they are competitive with the other players. Inventory will be constrained, but [if customers can’t find the $399 PS3], maybe they’ll pay extra for another model.”
The source didn’t think backward incompatibility was a big problem, believing that many people will just keep their PlayStation 2 systems to play older games.
“This will be huge for Sony, because you have the Blu-ray player, and now you’re getting closer to the [entry model] price points of a 360 [$349] and Wii [$249],” the source added.
Neither the Xbox 360 nor the Wii offer internal high-definition disc players. An external HD DVD drive is available for the Xbox 360 for $179.
