Comments on: Sony cuts price of PS3 in Japan because Japanese consumers are stupid?

By: kaishin

kaishin — Sat, 23 Sep 2006 10:30:21 +0000

Check this out for a more thourough explanation. It seems like there much more behind the price drop in Japan, rather that what I was and you were talking about.

By: Chris_B

Chris_B — Sat, 23 Sep 2006 08:17:27 +0000

Heres another view: The PR statement was just that, no basis in fact. My bet is Sony desperately wants to build up as much of a customer base as possible as fast as possible to counter the image that they are slipping and no longer "cool". They are severely threatened by Nintendo at this point and are willing to take an even bigger loss on the hardware and abandon the traditional strategy of charging domestic consumers much more than overseas consumers for the same exact consumer product.

By: Ken

Ken — Sat, 23 Sep 2006 05:59:49 +0000

You missed it? There was that special 1 yen gets you $1 day at Mizuho last week. Good stuff!

By: yeti

yeti — Fri, 22 Sep 2006 14:55:56 +0000

I agree with randomcommenter. The source you quoted only gives the point of view of Sony’s spin doctors. Did the reporter check facts, such as the assumption that Japanese would know how much the machine is in America? How about interviewing potential buyers? Besides, I’m SURE that what they balked at was Japanese price vs. US price, not the fact that this thing is freaking $500.

By: randomcommenter

randomcommenter — Fri, 22 Sep 2006 14:27:41 +0000

“If we are to take the reporter’s word that Sony dropped the price because of that misconception”

Well, that’s the point of contention, isn’t it? Folks balked at the PS3 price because it was so goddamn high. Sony could say “We lowered the price because people thought it was high”, but the immediate counter would be “and they were right!”. However, phrase it “we lowered the price because people thought it was more expensive than the overseas units, because they’re bad at currency conversion”, and the obvious comeback “and they were right!” isn’t possible.

In the end, it really comes down to: are you prepared to make a judgement about the intelligence of a large group of people based on what a marketing person tells you? I’m barely prepared to make a judgement about a product based on what a marketing guy says, let alone make a judgement about a nation.

By: kaishin

kaishin — Fri, 22 Sep 2006 10:52:38 +0000

There is a difference between BELIEF and PERCEPTION. Consumers are well aware of the fact that 100 yen isn’t equivalent to 1$, but AT FIRST GLANCE the price gives them that feeling of being ripped off! And I totally understand that feeling, since me too I had it many times with the yen, and the Canadian dollar!
Just to give a close example, the “??,99″ pricing thechnique that leads the consumer to have a WRONG PERCEPTION about the price, focusing more on the integer part and ignoring the digital. Those pricing tachniques are called PSYCHOLOGICAL PRICING, which is a “theory in marketing that these prices have a psychological impact that drives demand greater than would be expected if consumers were perfectly rational.” from Wikipedia. This said Nintendo marketing decision is PERFECTLY RATIONAL AND JUSTIFIED!!! MARKETINGLY SPEAKING!

By: James (admin)

James (admin) — Fri, 22 Sep 2006 08:16:14 +0000

As the reason for the price drop is an ignorance-fueled perception that 59980 yen is much more expensive than 499 dollars, I would see it as a company taking a desperate measure to respond to consumer ignorance. If we are to take the reporter’s word that Sony dropped the price because of that misconception, it has nothing to do with consumers being smart. I really doubt that Japanese consumers got together and decided that they would start believing 100 yen = 1.00 dollar for the sake of getting better prices.

By: yeti

yeti — Fri, 22 Sep 2006 07:31:14 +0000

Obviously the consumers are smart since they are now getting a better price.

By: James (admin)

James (admin) — Fri, 22 Sep 2006 06:03:20 +0000

Yes, I know he meant that $1 = 100 yen, but that’s not the point. When I see this article, I don’t see 49,980 yen and think that both countries will be paying equal price. The author put “($425)” in brackets, so it is clear to anybody reading that currency conversion is not so simple. If anything, this should make non-Japanese customers, who are smart enough not to equate their currency to yen, to see the $425 figure and realize that they’re being ripped off.

Why can’t the Japanese media and Sony clearly demonstate the fact that 59980 yen is almost the same as $499 (it’s actually $511)?

By: nightfish

nightfish — Fri, 22 Sep 2006 05:51:30 +0000

Of course he meant that Japanese have perception that US$1 = ¥100 (or $100 = 1 man). And the point is that ¥49,980 matches US$499, while ~¥59,980 sounds like ripoff.