PS3 Price Cuts: Why Sony Can’t Afford Not To

[KBG29]

PS2

Sony has come out admitting that 3rd parties were in talks of dropping PS2 from there schedual. This was a move that would have been devistating for Sony. The PS2 is a pure profit machine, but the games are were the money really pores in. If they start loosing big games like Guitar Hero, Madden, Need For Speed, ect. then they loose a masive amount of potential income, which far outstrips the profit that would be made from selling PS2's at an extra 30 a pop. It is for this reason only, that we are seeing the PS2 price point come down.

PS3

Playstation 3 has absolutly no reason to see a price cut. It is still selling exeptionally well when compared to consoles from previous generations. It is well on its way to passing every other home console not called Playstation, that came before it. As I have stated many times, software and services sell devices. With the right software, services, and marketing $400 starts to become a non factor.

What Sony needs to do with PS3 is continue to push the envolope on what they are offering out of the box, and show that in a way that they can get the general public to garner interest. PS3 has every oppertunity in the world to become the iPod of the Blu-ray industry. Sony just has to get it out there, and make people want it.

I think they are in good hands with Howard Stringer, as he has been about software, and services since day one. Now it just comes down to how much Home, and PSN can eveolve before the holidays, and how well Sony can show the public the massive amount of value you get for your money.

One last thing.

Even if they wanted to drop the price. They have waited to long. It makes no sense to drop in April, because it would give you momnetum going into the slowest part of the year, and by the time people are ready to shop for something like a game machine, the hype of the price cut will be long gone. If they have to drop the price this year, late September to early october is a mcuh better time frame.