Will Sony Reduce Prices and Heat with 45nm Chips?

Reportedly we’re going to see smaller 45 nanometer cell processors in 2009 which leads to similar cost savings as we saw in the Xbox 360 hardware. Cost savings appear on the manufacturing side, of course, along with less power consumed by the processor leading to less heat generated by the console.

The Xbox 360 was able to benefit from chip reduction when for stability and overall heat issues, although the stability is still out for debate at the moment. The concept is fairly simple to understand; heat causes problems in closed systems with few fans and a high degree of complex components. Reduce the heat means reducing the overall need to cool and get air flow into the hot little box.

Console hardware is owned by a broad audience, not all of which understand technology and its ability to boil an egg. Consumers toss consoles and their power supplies in closed cases within their entertainment system and restrict air flow further. Any reduction in heat is a good thing for the console developer.

We’re not guaranteed, however, to see cost savings. Microsoft passed the cost savings to the consumer, recently, but went awhile with their lower-cost “Falcon Chipset” received such a cut. They were, more than likely, trying to recover some of the expenses associated with creating the system and cleaning up the disaster that was the red rings of light.

Will Sony do the same? As the year rolls on into 2009 and these processors start to hit store shelves, what benefit will we have, as the buyer? With the 360, people would scamper out with flashlights and manufacturing codes to find the infamous stable Xbox 360PlayStation gamers haven’t had such a need for heat reduction; they’ve got a need for cost reduction.

Sony’s taken a lot of heat for their high priced Trojan blu-ray appliance along with substantial costs for winning the format war. They have a 10-year plan for the PlayStation 3 and price reductions may definitely accelerate their plan of dominance before Microsoft tosses out some next-generation news.

The huge boost in 360 sales prior to their price cut was fairly significant in the market, presumably Sony would get a similar pop in retail. Gamers want cheap PlayStation 3‘s now, not in 2009, but the idea of a price reduction is always a nice incentive for future buyers to consider.

Of course, Sony would never talk to this topic as the threat of consumers holding out for a price drop would be way too high to take such a risk.

Anyone forsee a price drop for PS3? Would that intice you to buy?

(Thanks, Engadget)

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3 Reasons Publishers Desire Us to Keep Old Games3 Reasons Publishers Desire Us to Keep Old Games

When we invest in a new video game we want to feel satisfied by the content supplied in the game, we want to know we’re getting our moneys worth in the investment. Publishers, on the other hand, want us to keep our old games so they stay out of the used market. A publisher does not make a dime on used game sales. Their primary weapon to stop game sales? Downloadable Content (DLC).

1. Publishers Spend Lots on Marketing

A great example being GTA IV, hardcore gamers have a short attention span and live on hype more than physical games. Today, games live in press releases, demos, cinematic and live gameplay footage at conferences and on the web. Then, a game hits the shelves and sells millions of copies for a week or two before it’s forgotten. Publishers have marketed their game well, spent thousands on conference booths, streaming video bandwidth and rushing game demos through development and testing cycles early to get eyes on their titles.

Let’s face it, gamers that scrambled to buy Grant Theft Auto IV have moved onto the next big title or have decided to go outside for some fresh air (probably the former). Hardcore gamers consumes games like candy, sells them off for store credit and works towards their next purchase.

2. Publishers Want Loyalty

DLC breaths new life into old games, making them remain valuable for months after the hype and excitement has died. We’re now spending USD $60.00 for some of these new “current generation” game titles for a few days or weeks of excitement. Free downloadable content brings new reasons to play our “old stale” games and allows us to feel comfortable about our 60 bucks spent on a title.

Rainbow Six Vegas 2 is receiving a new “Fan Pack” for gamers to re-energize themselves about the “old” sequel to Rainbox Six Vegas. A game released in March is considered old by gamers, probably rarely played on Xbox Live anymore and needs something to keep the fans interested. This helps build loyalty to your product so the next franchise title which is released has a better chance of being purchased by your fan base because they can look forward to additional free content in the future.

3. Publishers Hate Used Games

Publishers are helping stick those games in the hands of the gamers for a longer period of time by supplying free add-on packs. Why would you re-sell your precious title back to the store when you could hold it and wait for potential DLC?

Publishers receive no revenue from the resale of a video game so it’s in their best interest to keep it out of the used markets. If there is a chance your beloved game will receive new features, at no cost to you, wouldn’t you hold off from selling it to see what’s coming?

Once a gamer has sold their title to a retail chain for pennies they’re unlikely to re-buy the title with the typical 80% markup when DLC arrives. They may opt to borrow a friends copy or rent the title rather than re-purchase it; neither fair well for the publisher in terms of revenue.

Games are expensive. Consumers must be wise to the best value in their video game titles and publishers want you to choose them for your gaming entertainment. Competition is high, profit margins are low and the market is all about sales volume. Publishers want repeat customers, people who feel their games are valuable before and after the purchase and are willing to share their loyalties with others.

Do you collect old console games, or do you sell them off to game stores and/or eBay? Would you consider holding off a sale if there was a great chance of new downloadable content?

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It seems we’ve seen a lot of great concepts from Sony for their PlayStation 3 product line but very little has managed to hit the software virtual shelves. We’ve heard of Sony’s Afrika for the PS3 back at E3 in 2006 and we’re looking at it for 2008’s holiday lineup.

We’ve heard about Sony Home for years as well, but that’s now in some type of beta. It was supposed to be an open beta but that didn’t seem to work out and now it’s closed beta only. Recently they pushed out a firmware update that bricked PlayStation 3 consoles or at least screwed up many of them in varying levels.

Are they just really bad at software development and road map predictions? As a hardware development company they’ve put out some hardcore products, stone cold stable in terms of design and efficiency from the Walk Man to the PS3. Their products are practical in design, for the most part, fairly pretty, stable and function as designed. Yet they come up short on software time and time again.

One of the contributors at 2old2play had some things to say about Sony’s development efforts:

“Having worked at Sony as a Creative Designer two years ago, it doesn’t surprise me that they have still yet to release Home. While there, I was working on their Station Launcher application which was supposed to be released in late 2006. However, the Launcher app is still only in Beta to this day.” (2old2play.com)

In many ways their the anti-Microsoft in their approach and commitments. While Microsoft ships hardware that has what must be a 60% failure rate Sony ships hardware which works fairly well. On the flip side, Microsoft publishes a large quantity of software for all their products and has done very well in the business. Nobody can say it’s 100% perfect but it tends to get better with age or, at least, grow on you.

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