Analyst on Sony Playstation 3: $200 price cut required
May 26th, 2007 Leave a comment Visited 47 times, 1 so far today
Analyst on Sony Playstation 3: $200 price cut required
Bank of America’s Michael L. Savner has said in a statement that Sony would have to take some extreme steps to recover from the mess they have created with Playstation 3 for themselves.
He said that the company would gain little even if they introduce a $100 price cut this Summer or Autumn.
He said in a statement to Gamedaily: “Despite growing anticipation that a $100 price cut for the PS3 is imminent this summer or early fall, we do not believe such a move would meaningfully improve stagnant PS3 sales and we are growing more concerned that a share shift away from Sony and Microsoft to Nintendo’s Wii platform is incrementally negative of all 3rd-party publishers.”
Savner further said: “Based on our analysis, we conclude that a $100 price cut for the PS3 would still leave the ‘all-in’ cost for a PS3 console and basic accouterments 20-25% higher than the comparable Xbox 360, and does not even reflect the possibility that Microsoft could also lower its hardware prices. Further, an important driver of Sony hardware last cycle was exclusive games, such as Grand Theft Auto. Unfortunately, Sony does not have a similar advantage this cycle. Halo 3, a highly anticipated game release this year is a Microsoft-published game only for the Xbox, and Grand Theft Auto IV, by Take-Two’s Rockstar unit, is being released on both the Sony and Xbox platforms.”
eventually, he suggests that Sony would have to cut the cost of the console by at least USD 200. But the possibilities of such a cut are minimal considering the company is already making huge losses on each console sold in the market.
Savner added: “Offsetting a potential price cut are decreasing production costs, which should improve significantly this year. We estimate that the loss per console could decline to about $50, assuming Sony does not cut its wholesale prices. Bottom line, we don’t expect Sony to make up meaningful ground against the Wii this year.”
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May 26th, 2007 at 10:18 pm
thank god they will atleast cut it $100 its over-priced but still a good system, hopefuly it will be cut by $150 that would definately make me buy one!
May 29th, 2007 at 07:29 pm
I bought a PS3 on launch day, held on to it until christmas (I figured it wasn’t worth $2000 to me) and when I saw that the prices on ebay dropped I wrapped it up and gave it to myself for Christmas. Its the best console I’ve ever bought. I have all three next gen systems and its by far the best. I don’t think $600 for this is too much money to ask for its target demographic. Sony isn’t trying to sell this to the 8-12 year olds. They are aiming at selling it to the 18-25 year olds. They have considerable more money than younger kids. Now I do think a price cut would help sony sell more consoles. I don’t think the percieved value is hurting them. Its one of the best and least expensive Blu-Ray players on the market and oh yea, you get a gaming console out of the deal too.
$600 PS3 = Good Deal
$500 PS3 = Great Deal
$400 PS3 = No more one shelves in my opinion
May 29th, 2007 at 07:39 pm
A price cut of between $150 or $200 would definitely tempt me to buy one. Loads of people are waiting for the price of the PS3 to come down and sales are stagnating because Sony are asking too much for it. Most people who want a Wii or a 360 have already bought one.
Lair, Metal Gear Solid 4, Tekken 6, Little Big Planet and Heavenly Sword are the top 5 games on my wishlist (this is all assuming Sony lowers the price so I can buy a PS3).