Article: Sony's Slow-Motion PS3 Price Cuts (SNE)

[NJ5]

axumblade said:

NJ5 said:

axumblade said:
Honestly, a $50 dollar price cut wouldn't hurt Sony as much. Also, I think that all Ps3's from here on out should come with a free download voucher for a PSN game (Pain, High Velocity Bowling, or Pixeljunk Monsters). It's a great way to introduce customers to the PSN as well as the trophy system.

A $50 dollar price cut can cost hundreds of million dollars, the same amount they're losing due to lower-than-expected PS2 sales and the exchange issue.

Dodece touched some relevant points. It's possible Sony has a production glut and is selling discounted PS3s to retailers.

 

The price to produce the PS3 has also dropped significantly from what I understand. If the price continues at the pace that it is then I'm sure a price cut wouldn't be nearly as painful on Sony. I understand why they'd sell them at discounted rates. Honestly though, at Best Buy, there's normally a deal where you can get a TV and then they'll throw in a gaming system (whether it is a PS3 or a 360). Last year at Wal-Mart, they gave were giving out pretty hefty gift cards to anybody that bought a blu-ray player (including the PS3). Sony may have to approve of these deals but they have been doing them for a long time.

 

Manufacturing cost also dropped significantly, but so did Sony's revenue on hardware even without making price cuts (again, the pesky currency issue). As I recall it they said in their financial report that they were counting on breaking even around this time, but it's probably not the case anymore.