Sony on the brink of corporate upheaval, drastic changes

[NJ5]

BengaBenga said:

NJ5 said:

SMcc1887 said:
So, theres now like 10% chance a PS3 price cut will hit 2009?

I'd say a < 5% chance in Q1-Q3 and a 10-25% chance in Q4. A lot depends on the exchange rates, if those get favorable it would help the gaming division a lot.

 

 

I assume you mean calanderyear Q1-3?
Without a pricecut PS3 is on track to sell about 3 million worldwide in the first 3 quarters if we extrapolate the November-December sales. An October pricecut could drastically increase sales, but I don't know if it will ever recover from such terribly low sales earlier in the year.  

This must be a prime example of "between a rock and a hard place"

Yes I'm talking calendar not fiscal quarters.

And yeah, PS3 sales are poised to be pretty bad without a price cut, which is why I predicted about 9 million PS3s sold during 2009 (at that time assuming a price cut at the end of the year).

Price cuts are very expensive, even a $50 price cut would mean losing half a billion in revenue, with only part of it recovered by additional game sales gained by the hardware sales boost... I expect loads of bundling, for example with KZ2 and GT5. They better get GT5 out this year to get cash flowing in.