By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sony - Pachter: Sony will cut PS3 price 1st of April

Demotruk on 31 December 2008

I predict that they will drop the price by only €50, in late 09. Anything more is too risky for a company in it's position.



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

Around the Network
Luthor on 31 December 2008

A drop of the PS2's price is more likely at Q1.



Go buy Metroid OTHER M!

Wii code: 6775-1034-2238-1634

PSN: birdie93      XBL: luthor93

3DS: 3909-7597-9889

You can add me, I won't stop you!

My website: www.fight4custom.com

SlorgNet on 31 December 2008

Sony has very little long-term debt, a media barn with numerous cash cows, and a fast-growing dragon called Bluzilla which is currently dining on the carcass of the DVD market, so they have options. They may cut the euro price by 50EUR next spring, due to the strength of the euro, but the price needs to come down to $299/299EUR next fall at the absolute latest.



NJ5 on 31 December 2008
WiiStation360 said:
NJ5 said:

http://www.thestreet.com/_yahoo/newsanalysis/hardware/10455329.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

"My guess is that they will cut April 1, which is the day after the end of the fiscal year," Pachter said. "To cut $50 after Christmas doesn't do that much for you. Potentially, Sony could sell 3 million more units at a $50 incremental loss each. That's a $150 million loss, which is hard to reconcile with the job cuts the company has announced."

 

If each new PS3 owner buys an extra controller and 2-3 games, Sony breaks even.  Software sales are where the money is at.  They need to sell more hardware to increase software sales.

 

Actually, Pachter's statement is misleading. He's only talking about people who get a PS3 due of the price cut. What about all the other sales? If the PS3 sells 13 million units in 2009, a $50 price cut means a $650 million loss.

At $10-$20 in royalties per game (depending on if it's 1st party or not), they need to sell 30 - 60 million more games to recoup the loss of the price cut alone.

Conclusion: Cutting the price is good to gain market share and spur sales, but not to make money.

 



My Mario Kart Wii friend code: 2707-1866-0957

student on 31 December 2008

I don't know, they're not doing great but they're still maintaining a decent market share. I don't know if a price cut is needed until they can ensure they won't hold a loss with it.



Around the Network
Aj_habfan on 31 December 2008
leo-j said:
I predict (ive said this before)

E3 09:

Sony drops the 80gb to cut out stock they drop it to $279.99

Announce new 100gb model BUNDLED with little big planet for $299, Announce a BC model with killzone 2 as well as a 200gb HDD for $399

Cut the 160gb to $379.99 to kill off stock

Drop the ps2 to $99.99 (and possibly cut the psp to $139.99/$179.99 for bundles)

If they do that, they will do amazingly well the 2nd half of the year, by amazingly well I mean PSP/PS3 sales will double-triple compared to the 1st half of the year, and PS2 sales will hold or slightly increase.

You expect them to drop the price of the PS3 by $100, add in a popular game, add in extra hard drive space, and add in another expensive device to play old games? That's ridiculous.

 



RAZurrection on 31 December 2008
Blacksaber said:
I would say E3 through October is when there doing if they are...

Agreed.

Ms will have theirs end of August/Beginning of September as usual.



NJ5 on 31 December 2008
SlorgNet said:
Sony has very little long-term debt, a media barn with numerous cash cows, and a fast-growing dragon called Bluzilla which is currently dining on the carcass of the DVD market, so they have options. They may cut the euro price by 50EUR next spring, due to the strength of the euro, but the price needs to come down to $299/299EUR next fall at the absolute latest.

$7.2 billion is very little long-term debt??

Source: http://finance.google.com/finance?fstype=bi&q=NYSE:SNE

 



My Mario Kart Wii friend code: 2707-1866-0957

Darth Tigris on 31 December 2008

Anyone that thinks this will happen on April 1st is a FOOL.  A FOOL, I say!



Snake612 on 31 December 2008

It is possible they will cut the price around that time. However, like I said before, they need to make a lot of money off of their software and make the ps3 more profitable.



TO GOD BE THE GLORY