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Forums - Sales - Sony faces some heat= Price Cut?

alfredofroylan on 16 March 2009

Some game publisher aren't happy with the PS3

March 16 (Bloomberg) -- Sony Corp. is under pressure from video-game publishers to cut the price of the PlayStation 3 console or risk seeing more development funds shift to Nintendo Co.’s Wii.

Sony, which has resisted calls for lower prices, is likely to shave $50 to $100 off the PS3 this month or next, said Mike Hickey, an analyst with Janco Partners Inc. in Greenwood Village, Colorado. Starting at $399.99, the PS3 is $200 more than the lowest-priced Xbox 360 from Microsoft Corp. and $150 more than the market-leading Wii.

Three years into the latest generation of game consoles, Sony is stuck in third place, data from the manufacturers show. The Tokyo-based company, once the dominant player, has half the worldwide users of Wii, even though the PS3 has earned praise for its processing power, graphics and Blu-ray movie player. U.S. sales of the PS3 have declined for three straight months.

“If they can’t meaningfully increase their install base, then you will likely see a capital reallocation,” Hickey said.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aiHCQM2xNCmU&refer=home

Well everybody is talking about how a price cut will increase the install base like magic. But what if it doesn't work like that?



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Gnac on 16 March 2009

Dupe



WHERE IS MY KORORINPA 3

Staude on 16 March 2009

isn't that the guy who said they were gonna cut price immidietly a month back too ? maybe his doing it every month until his right.



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Zlejedi on 16 March 2009

The good thing about being independent analysist is you can put as many predictions as you want and than wait till some of them fullfills.

And if someone is stupid enough to buy stocks according to your advice it's their own risk :D



PROUD MEMBER OF THE PSP RPG FAN CLUB

madskillz on 16 March 2009

I made a comment in the other thread - but in the end, the devs chose to make the PS3 their lead console. I'd love to see them make money on the Wii too.



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TacoBoy49 on 16 March 2009

The PS3 can't cover the costs anymore with the PS2 sales drying up. They might have to sell off another factory to Toshiba or Samsung or even their majority stake of blue ray to a competitor to cover the costs. They already sold of their once proprietary cell technology to Toshiba.



Millennium on 16 March 2009

They can't cut the price until they can afford the losses that would result. Given that they can't even afford the losses they're having now -what with squandering the profits from the PS1 AND PS2 eras in the space of two years- it seems very unlikely that they'd be able to afford even more.



Complexity is not depth. Machismo is not maturity. Obsession is not dedication. Tedium is not challenge. Support gaming: support the Wii.

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What do I hate about modern gaming? I hate tedium replacing challenge, complexity replacing depth, and domination replacing entertainment. I hate the outsourcing of mechanics to physics textbooks, art direction to photocopiers, and story to cheap Hollywood screenwriters. I hate the confusion of obsession with dedication, style with substance, new with gimmicky, old with obsolete, new with evolutionary, and old with time-tested.
There is much to hate about modern gaming. That is why I support the Wii.

TacoBoy49 on 16 March 2009

I'm sure Sony realy really wants to keep that last billion dollars they made from the PS1. After that, there completely in the red from Playstation alltogether.



damndl0ser on 16 March 2009

As most of you know Sony is stuck between a rock (price cut) and a hardplace (high yen). There is no way they can drop price without taking huge losses again. They shouldn't wilt to the pressure of what some no name analyst says. Keep the price as it is until Sony can afford a price drop. If they don't they are taking chances with the entire company and not just the gaming division.

While I have been a strong xbox 360 supporter, believe it or not I am also pro PS3. I think they will be fine in the long run but they will more than likely never come out of 3rd place. And this is ok! Look at nintendo, they were profitable with the GC and they were in 3rd.

If Sony does drop the price and it doesn't change things very much, then they will be in dire straits. Losing even more money and not gaining market share would be more than Sony could handle at this point.



"If you've got them by the balls their hearts and minds will follow."

Quote by- The Imortal John Wayne, the original BADASS!

 

 

 

scat398 on 16 March 2009

I know one place where sony is getting a lot of pressure to not drop the price of the PS3, and that's from their investors. Gamers may want a price drop but the people who pay the bills want to make sure Sony can continue to pay their short term debt.