Will Sony pull off a PS3 price cut?

[KBG29]

I don't kbow what the best move for Sony is right now. I think it will be what happens in January and Febuary that really tells the future.The rest of this year the price will not change. This years big hopeful for Sony is that the 160GB system will sell well. If that happens they will make quite a bit of money, as the system is maybe $20 more to produce, and they are selling at $100 more.

It is still very likly that the PS3 could start outselling the 360 before the year is over. As we move closer to December, and the Blu-ray push really hits the momentum could take a swing. If that carries to the new year and each system is within 10k in weekly sales Sony should be able to stick it out for a while. Their first choice is to ride it out at $399 as long as possible. In this scenario I think we may not se a price cut until the Slim PS3 comes out in late September, and a new price point of $299.

If PS3 fails to swing back any momentum this year, and sales gaps at the beggening of the year are close to 25k then Sony is going to have to make a price cut. In this scenario Sony will have to make their move early, and I would figure no later than April. The best move they could make then is to drop the price to $349, and then drop again with the slim to $299 in late September.

Personally I hate the idea of droping the price twice in one year, but your everyday Joe will flock to the price cut without a second thought. The only people that really notice these cuts are current owners, and gamers. The rest of society has no clue the price dropped twice. So in this case they will have their best possible sales boost, and profits will take less of a hit.