here is the complete analysis in case some of you missed it.
"It would not only be the perfect time for a price cut, but it's almost guaranteed due to it being the end of Sony's 2008 financial year.
We reported on IGN's prediction that the PlayStation 3 would get a price cut this year. Well, it was pretty obvious that this was the case. Not only does the console need a price cut to compete with other consoles on the market, but Sony is fast reducing the manufacturing cost of the console, and so will be able to afford it.
Some point to the company's huge losses and argue that there's no way Sony could take a bigger loss on the PlayStation 3. However, they might not need to.
SCEE head David Reeves appeared to hint that the PlayStation 3 was already making a profit, which is evidenced in the Games Division's Q3 slight profit.
The numbers made it clear that the PlayStation 3 was the main bread winner for the Games Division, by selling the most hardware and software. Now, if the company has been able to reduce the manufacturing cost of the PS3 so far that they're now making a slight profit on every console sold, then there's even more room to breath.
So why would they cut the price when they've only just begun making a profit? Well the key lies in this comment from David Reeves:
"My objective is financial - to make a profit in our territory by the end of March, and we will. Our priority has always been the PS3; the forecast was 10m at the beginning of the year and it's still 10m. If we'd cut the price, lost another billion dollars, we might have had a huge Christmas but it would have been followed by a huge loss." *
Sony's goal is to make a profit in the Games Division by the end of the 2008 fiscal-year, which ends in March. So by reducing the manufacturing cost and not the retail price of the PlayStation 3, Sony can ensure that they'll make a profit for 2008. This goal is even more interesting when Reeves reveals what's at stake if the Games Division doesn't make a profit in 2008:
"The company could have thought: 'Hmm, I'm not sure I want to be in this business at all.' But we've shown Sony this is still a good business to have."
Sounds like SCE is trying to prove themselves to the big bad boss at Sony HQ. So with the 2008 profit in check, a price-cut can come in the 2009 fiscal-year, beginning in April. The company will be willing to take a loss in the first part of the year, and attempt to make up the money later on; as Reeves explains:
"We're always looking at ways to reduce costs, replacing the current 65 nanometre Cell chip with a 45 nanometre one probably in middle of year."
If they cut the PS3's price to make it a loss in April, later revisions, including the 45nm Cell, will make sure they're back into profit in the rest of the year. It's clear that SCE is planning the price-cut for as early as possible, with Reeves further saying about the PS3:
"Will it be the cheapest player by end of 09? Probably not - but it will make progress." *
They will make progress, and as early as April 2009. This timing also makes sense from another point-of-view. Why reduce the price before the release of blockbuster Killzone 2? There will be many consumers willing to buy the console just for that game, so why give them a cheaper price when they're already willing to pay £299?
So Sony will milk eager Killzoners and then cut the price soon after for a new audience who weren't willing to cough up 300 quid. The only date that makes sense is April 2009. Put it in your diary folks: PlayStation 3 price-cut April '09 (though Sony doesn't want you to know that...)
Patrick Steen"
here is the link: http://www.gamezine.co.uk/features/formats/playstation3/editorial-april-09-ps3-price-cut-almost-guarenteed-$1266659.htm
yea i agree with you guys i dont think there will be a price cut in april given sonys situation, but i think sony should do it in Q4 that would help them a lot.
