Jack Tretton has been talking recently on the consistent pressure from third-parties for Sony to cut the price on the PlayStation 3. The console is still the most expensive among the competition, and calls for a $100 price-cut have increased recently.

Talking on the subject, Tretton said, "I can’t remember a day that people who have no stake in the profitability of our company have not called for a price cut. I think everybody but us would love to see it given away for free."

He continued on saying, "...we’ll do everything we can do to make our pricing relevant. But remember cheapest isn’t always the most successful. It’s what you get for your dollar."

http://www.ps3center.net//news/3209/tretton-well-do-everything-we-can-do-to-make-our-pricing-relevant/

No cheapest isn't always most successful.

But for PS3 its gonna help so much.....I think he knows that too

but this is PR....we can't expect himt o say anything else

this is beyond PR, it is real life. Everyone claims they need a price cut, but they are just on the edge of profitability. Taking a price cut would pretty much guarantee another year in the red.

@nordlead

but his last sentence is a lie

because even he knows how much a price cut can help PS3

No it isn't, he said that value matters, and it certainly does. Value is subjective though, so his comment was rather pointless, no matter how true it is

his last sentance isn't a lie and is actually quite true. He never said a price-cut wouldn't help. He just said being the cheapest doesn't equal victory. Look at the gamecube and you have an example to back up his statement. It may be cheaper for them to improve PSN and convince people to buy because of those upgrades than it is for them to cut the price by $100.

In the end, people want to buy something they perceive has a good value. People buy the Wii over the X360 at $200 because they think the Wii is worth more. Sony is trying to do the same thing, in making people think the PS3 is worth the sticker price, and is the system they need over the cheaper competition. This can be done through price drops, advertisements, more features, or packins. Sony wants to chose the option that increases sales the most and costs them the least. A price drop could bring in the most, but it would surely cost them the most too.

@nordlead

interesting point of view nordlead

& yeah your right bout the GC & Xbox 360 examples

It's not so much a point of view as it is an explanation of the status quo and basic economics.

Well they seem to be quite succesfull recently with this strategy considering they are getting around 80% of sales of X360 which has much more affordable entry price.

For once Tretton speaks honestly!