PS3 price cuts? Yes, no, or maybe!
By David Cassel
Are PS3 price cuts on the horizon? At least one site reported no — that Sony nixed the possibility. But a careful read of Sony’s comments reveals a slightly different response: they just didn’t say ‘yes’. And there’s a big difference…
Wednesday Sony’s Corporate Communications director was addressing only one specific scenario. Earlier this week an analyst at Lazard Capital Markets reported a big rumor from Asia — that Sony had temporarily reduced PS3 production. The analyst speculated this had made price cuts less likely. But then Sony’s director of corporate communications jumped in to say the analyst had gotten everything wrong — both the premise and the conclusion.
- Sony denied any decrease in Sony’s PS3 production.
- Sony denied they’d ever make a price change that was based on their PS3 production rate
A PS3 price break has already been debated and anticipated at length as the solution for slow PS3 sales against the Wii and XBox 360. But earlier this week a Bank of America analyst noted that even a $100 price cut would still leave the PS3 at least 20% more expensive than an XBox. (And Microsoft could always retaliate with a price cut of their own.)
In this interview with Business Week, analyst Michael L. Savner said Sony should shave at least $200 from the PS3 price to make them attractive to consumers. But then he pointed out the bad news: Sony is already losing about $200 on every console sold.
It’s not just Sony that’s affected by slow adoption. The analyst argues that all third-party publishers would suffer if Wii dominates the console market. Nintendo itself is the game platform’s top software publisher, and publishers traditionally rack up less whole revenue when developing for the Wii (and PS2). Unless Sony finds a greater market share for the PS3, the entire game development industry could be affected.
So what’s at stake in the latest round of dispelled rumors about a PS3 price cut?’
Nothing — and everything.
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June 1st, 2007
well….no… If nintendo Wii dominates that just means that the public don’t want ‘next gen graphics’ shoved down their throats but instead they just want fun. The third-party publishers can still develop for the X360 if PS3 fails completely (which is unlikely), so they won’t be affected.
June 5th, 2007
[...] PS3 price cuts? Yes, no, or maybe! [...]
July 1st, 2007
[...] GAMER.BLORGE.com Blog Archive PS3 price cuts? Yes, no, or GAMER.BLORGE.com. J Pospisil, T McIntyre G Gardner, R Francia D Cassel, J Schlaffer. Recent stories. Microsoft: Xbox 360 will never follow PS3 with Blu-Ray; Retailer: [...]