BengaBenga on 08 July 2008
| ZenfoldorVGI said: Hmm, interesting topic. What do you guys think this means for a possible price cut for the PS3 this fiscal year? Possible, or impossible? |
Nothing is impossible, but it's highly unlikely.
1) Sony's shipment target for PS3 is 10 million (april 2008 - march 2009). They'll easily make it at the current pricepoint, hence no need for a pricecut.
2) Howard Stinger even mentioned the need for profitability at SCE. It's the first time in years I heard the CEO of Sony talk so directly about SCE's strategy. They used to have quite some autonomy within Sony. It's a big issue (see the figures I posted above, SCE is responsible for a profit drop of over 25%) and a pricecut will have an enormous impact on the profitability.
A simple calculation: Pricecut of $100 x 1 million PS3's is a staggering 100 million less profit.
