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[elmo_sni]

wait wait wait... they said OVER priced?

WTF are they brain dead? PS3 is the most UNDER priced console ever created = 100% fact

now weather or not a consumer is willing to pay for it is another thing... but that DOES NOT make it over priced.
if anything it should be called the most expensive game console, that is not so expensive in terms of what you're getting back, manufacturing costs & technology used in the device.

  idiocracy is slowly but surely taking over the world...

[Spectorz]

The Iphone is a decent example of overcharging the consumer due to the fact it's really more of a novelty than a practical phone.  Doesn't even have 3G, and a touch screen isn't cutting edge anymore.  Anything with the Apple logo is that way though.

Anyway PS3 is definitely bang for your buck if you use everything you get from it.  It's an HD wonderbox basically.  Too bad Joe Consumer doesn't even know what HDMI is, let alone 1080p native.

[elmo_sni]

QUOTE(d-range @ Sep 11 2007, 04:30 AM)

You don't get it. It's overpriced for its purpose, which is shifting as many units to the specific group of customers they are targetting. It might not be overpriced if you only consider its cost of production, but that's irrelevant from a business perspective. The consoles are not made to sell for big profits, the games should compensate for that, and you need to have installed base to sell games. It's the same as saying Ferrari's are not overpriced: they might not be, considering their value, but for 99% of people they actually are overpriced for their purposes (commuting). It's just a matter of interpretation, they should probably have used 'too expensive' instead of overpriced. But the message is clear enough for me. Put too many expensive gizmo's in your product that don't have enough value for your target audience, and your product becomes overpriced for them.
So it seems...

PS3's purpose = game console, computer(minus graphically intense computer games), blu-ray player, HD multimedia center, interactive communications device, ps2 & ps1 emulator(depending on version), paper weight(as i'm more of a wii60 fan)


doesn't seem to over priced to me? anyone that thinks PS3 is JUST a game console should be beaten with one...

[d-range]

QUOTE(elmo_sni @ Sep 11 2007, 11:57 AM)

PS3's purpose = game console, computer(minus graphically intense computer games), blu-ray player, HD multimedia center, interactive communications device, ps2 & ps1 emulator(depending on version), paper weight(as i'm more of a wii60 fan)
doesn't seem to over priced to me? anyone that thinks PS3 is JUST a game console should be beaten with one...

Yes and a Ferrari is a great sportscar that can do 0-200 in 10 seconds. All very nice and well, but most people dont *need* or *want* that. So for *their* purpose a Ferrari *is* overpriced, because they can get what they want (a 'normal' car) for 1/20th of the price. Features that are unused/unwanted do not add value for customers, and if the value:price ratio drops below a certain threshhold, the product becomes 'overpriced'. Try to stop thinking in terms of production cost:price ratio, instead of value:price ratio.

That said, one of the main problems with the PS3 actually *is* the fact that it's made as some kind of uber-device that should fit so many purposes. It drives up the production cost of the machine, and the audience that appreciates all these purposes as value is smaller than Sony hoped for (at least for now). It's pretty stupid of them to assume differently if you ask me by the way, because history has shown that integrating 100s of functions in a single device rarely works out. People often tend to prefer separate, specialized devices over multi-function devices.

[twistedsymphony]

Things are only valued at what someone is willing to pay for them.

If I make a solid gold turd and it's got a million dollars worth of gold in it but no one wants to buy it it's worthless... if I price it above what people are willing to spend on it... it's over priced.

It doesn't matter what it does or how much money was put into it

what matters is if people are willing to buy and if people consider it a good price or too high in price to buy.

the iPhone isn't overpriced because most people consider it's value to be high and are willing to buy it at the specified price.. the PS3 is overpriced because most people consider it's value to be low and are NOT willing to buy it at the specified price.

That is the very essence of what over priced means

Just becuase YOU see value in it does not speak for consumers at large. Just because it's got a lot of features doesn't make it valuable.


... value has always been, and will always be, determined by the market.

[Chancer]

QUOTE

the PS3 is overpriced because most people consider it's value to be low and are NOT willing to buy it at the specified price.

 Who are these most people though? Surely it is impossible to firmly say people consider it over priced.
It is not over priced because 20 people on a forum say so.
 If you are comparing it to say a 360, then it is higher priced than a 360.
If you compare it to the price of a standalone BR player it is not overpriced.
Price comparisons need to be like for like to determine which products are over priced. The fact that consumers put low perceived vale on an electronic item does not mean the item is overpriced.
The market gives false value to all electronics items these days due to the flood of cheap Chinese gear about. Mitsubishi did the correct thing when their Brown Goods were classed as overpriced. Puled the plug on that department , rather than compromise. They did the wrong thing then by allowing Vestel (AKA Black Diamond) to sell under the Mitsubishi brand some years later.
 I charge £20 to call to someone's house as an inspection fee for their equipment. Most in the area go out for free. I don't consider my service overpriced. The cost barely covers my running costs day to day, but it is easy to look at it side by side and say my service is overpriced. The flip side is I will say the others who offer it free or less than me are underpriced.
Consumers will always shout about the lowest prices, it is human nature to want to pay the lowest price. Selling a product at loss even if that product costs £400 does not make it overpriced because the consumer only wants to pay £100 for it.

[Serious Sam]

QUOTE(elmo_sni @ Sep 11 2007, 02:52 PM)

Value is truly determined by what use the item has, not just to you or what you will get out of it. Just because i'm only going to use my 5.00 dollar bill to buy a 3 dollar item does not make my 5 dollar bill worth ANY LESS in terms of initial value.

No it doesn't make your 5 bucks worth any less it just means that you overpaid for a product thats only worth 3 bucks.

Most consumers at this point in time could care less for the PS3. The sales prove it even in it's own country. I know plenty of people including myself that have the extra cash to buy a PS3 at any time but chose not to because it has nothing that we want. To me the PS3 is a $600 item that I will not get any use out of . This to me makes it worthless and pointless to shell out the cash for. I see it as an overpriced item because of this. I will not get my money's worth having it sit under my TV collecting dust.