Earlier this week Sony announced at Gamescom that it is reducing the price of the PS3 80GB console from $400 (R3100) to $300 (R2350). The PS3 160GB will also see a price cut from $500 (R3900) to $400 (R3100), and most importantly, Sony will be launching a brand new 120 GB PS3 which the media has dubbed the PS3 Slim for $300 (R2350).
While these directly converted prices would be enough to get South African gamers chomping at the bit, it is important to look at the basic economics involved in various pricing structures. The USA has a massive population, and a fairly high percentage of its residents are able to afford luxuries such as gaming consoles. This means that Sony can afford to make less profit on each console because of the sheer volume of potential customers.
South Africa on the other hand has a relatively miniscule market for consoles. With a population of fewer than 50 million people, and a socio-economic climate which results in a very small percentage of the population being potential PS3 customers, it is impossible for local distributors to match the US PS3 price.
This same law can be applied to most high-end luxury goods, especially when we take things such as shipping fees and import taxes into account. It is estimated that there are around 600,000 potential PS3 buyers in South Africa, compared to the multiple millions of potential buyers in the USA. The result is that in order to operate, local distributors need to make more profit per sale than distributors in more developed regions.
The international price cut will reduce the price of the PS3 locally, but probably not to the extent that many are hoping. A SterKinekor representative did confirm to us that the PS3 price would be reduced and that the reduction would be in line with the international price cut. While he could not be drawn on a price at the moment, we can assume from his comments that the console will see a local price cut of around $100 (R800). This means that we can expect to pay at most R4200 for the PS3 Slim, as well as the PS3 80GB console.
When can we expect the PS3 Slim and price cut?
The SterKinekor representative confirmed to MyGaming that we can expect the PS3 Slim to arrive in October, although he added that this time frame is not set in stone, and that we may see it slightly earlier or slightly later.
The same representative could not give a solid time frame in which to expect the price cut to take effect. It is important to remember that the new pricing will only come into effect after new stock arrives. SterKinekor will presumably have to clear its current stock purchased at the old price before it orders new stock, and until that happens we can expect to pay the old price for the console.
An Incredible Connection representative told MyGaming that they could not comment on when the price cut would be made, but that it would be “soon” and there would be an official announcement.
The PS3 Slim to is expected start appearing in retail stores towards the end of September. Initial prices may be slightly inflated at around R4200, but there is a decent chance that they may come down to around R3900 before December.
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