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Forums - Sony - Prediction: Sony will cut PS3 price to $199 later this year

If they did that it would truely be a horrible decision.

Sony need to get money back. Many of you I guess don't realize this but Sony hasn't even made a profit on the PS3 yet in terms of the hardware. They do now on each individual console sold but their losses were so massive at the beginning of this gen they are still in the red because of it.

Sony need to keep the price as is and just continue to advertise the value of the PS3 or AT MOST cut $50 off. The PS3 is really starting to hit its stride now and any cuts into that profite margin would be an awful choice.

Remember profits are far more important than market share.



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if they dont they can forget about 2nd

i believe i was the one with "PS3 will go to 199 in 2011 sales will explode" in my sig most of last year i ve have some mixed feelings on it all still even to this date

going by all the price cuts they have all been $100, 100 makes sense to do, if they do go to 199 you can bet your bottom dollar that a 360 with a HDD will also be 200 cause a 360 with a HDD has never been more $$ than sony console this gen



                                                             

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UncleScrooge said:

I don't do prediction threads usually but there's always a first time.

The general consensus, I think, is that Sony will drop the PS3 price this year. It makes sense: Nintendo dropped the price of the Wii, Microsot could cut prices as well and it's been two years since the last PS3 price drop. From what I've read most people seem to expect a $249 price tag after the cut but I think Sony will go all out and cut the price to $199. Here's why:

1) It's been two years since the last cut. Sony's profit margins are always pretty slim (that's how they do business) and they make money on software and Blu-Ray anyways.

2) So far each year we have seen the PS3 price drop by $100. In 2007 they dropped it to $499, in 2008 it was $399 and in 2009 they cut the price to 299 bucks. There was no cut in 2010 though. A price cut is long overdue.

3) With the latest PS3 model released in Japan Sony seems to cut costs even further: Less LED's, smaller fan, HD output only through HDMI cable. Considering the costs per unit should've decreased anyway this could give Sony enough room to cut the price even further than $249. i believe you can still play games through component in HD but yeah i wouldnt be that suprised if there new model isnt that far from 199 cost to produce

4) Cutting the price to $199 now and to $149 late 2012 / early 2013 makes more sense than cutting prices to $249 / $149 as Sony will want people to focus on the PS4 at some point. A large price cut could detract from that. Cutting the price to $249 this year and $199 next year sounds like "too little, too late" for me as software sales will be down massively in 2013 for obvious reasons. It would also mean launching a new system while the old system is still priced at 200 bucks. For reference the Gamecube launched at $199. i think if they cut to 199 this year there will indeed be sales explosions as i mention last yr in my sig, i believe they could ride that price point till fall of 2013

5) Microsoft could cut the price of its console to $149 / $199 this year and they'd definitely still turn a profit on it. It's thoroughly possible that Sony could sell a $199 / $249 combo while still breaking even. i still see MS just adding things to there package and keeping that $200  and $300 price point  something like 250gb 360 for $200 and  kenict bundle with bigger HDD for $300

All in all I could see Sony drop the price to $199 this year. It's not a neccessity of course and we could just as well see the expected cut to $249 but I wouldn't rule it out.

What do you think?

Edit: I completely forgot to include the fiscal year forecast. Sony's projection is 15 million units for fiscal year 2012. That's even higher than FY 2011 shipments. Considering PS3 sales are down since the last price cut one could argue a drop to $199 is needed to meet the forecast.





                                                             

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Feniris said:

From a market share perspective, you would be absolutly correct. 

From a business perspective,  you should be wrong.


This.

Sony just started making money on the hardware, cutting the price to 199 will make console sales unprofitable again. I can't imagine they cutted the production costs under 200 bucks, but I could be wrong here.



updated: 14.01.2012

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Hype-o-meter, from least to most hyped:  the Last Story, Twisted Metal, Mass Effect 3, Final Fantasy XIII-2, Final Fantasy Versus XIII, Playstation ViTA

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$50 cut to all 3 models (2 HD models + move bundle)

This will leave them in a good position to still have "Block Buster ZOMG sales" during the Holiday at another -$20-$50. There is really no need for them to drop the price all the way and then STILL have to do something for the holiday.