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Old 04-19-2007, 02:28 PM   #1
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Exclamation PS3 Price cut imminent?

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A price cut for the PlayStation 3 games console may be in the cards as Sony Corp (NYSE: - ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER - - ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER). looks to strengthen the platform and expand its penetration.
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Sony said Thursday that both pricing and production volumes are under review as it looks to take its next steps now that the third-generation PlayStation has been launched in Japan, North America, Europe and Australasia. The company stressed a price cut is not imminent, however, meaning it may still be weeks or months away.

Sales of the console have been lackluster in some markets due to the popularity of Nintendo Co. Ltd.'s Wii. The rival console, which features wireless motion-sensitive controllers, surprised many by outselling the PlayStation.

Sony has stuck to its launch estimate of shipping 6 million PlayStation 3s before the end of March, which marks the end of its financial year. The company is due to announce its results for the period along with console shipments in mid-May.

On Thursday Sony also said its European PlayStation operations could see layoffs as part of a restructuring.

Up to 160 jobs could be lost at Sony Computer Entertainment Europe Inc., the Nihon Keizai Shimbun newspaper reported, quoting an e-mail message sent to staff on Monday from company President David Reeves.

Sony Computer Entertainment Inc. in Tokyo said its European unit is considering the reinforcement and streamlining of its operations to remain competitive, but that no restructuring has taken place yet.

Sony had already been eyeing cost savings from using a more advanced technology to make the Cell processor, which sits at the heart of the machine. First generation consoles used chips made on a 90-nanometer production process, but Sony will switch soon to chips made on a 65-nanometer line. Those chips are 40 percent smaller and thus cheaper to make.

Sony hasn't said when the 65-nanometer Cell will begin appearing in the PlayStation 3, but in mid-March IBM Corp., another of the companies that makes the processor, said it had begun making the more advanced chip.

In January, when Sony announced its third-quarter earnings, Chief Financial Officer Nobuyuki Oneda ruled out the possibility of price cuts for the PS3 in the near future, but hinted it could happen in two or three years' time. That thinking has apparently been revised



I think im gona wait 4 a month or 2, hopefully prices will come down nicely.....
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Old 04-19-2007, 03:03 PM   #2
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Re: PS3 Price cut imminent?

I doubt Sony will have a price cut...
If you look at it this way, a Blu-ray DVD player doesn't cost less than £1,000 while a PS3, which has blu-ray and plays games is more than half the price, now you tell me is that acceptable to have such a high price. I have heard that Sony, even by having such a high price for the PS3 are make apporximatley £50 loss per console...
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Old 04-19-2007, 03:51 PM   #3
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Re: PS3 Price cut imminent?

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Originally Posted by mercmad View Post
I doubt Sony will have a price cut...
If you look at it this way, a Blu-ray DVD player doesn't cost less than £1,000 while a PS3, which has blu-ray and plays games is more than half the price, now you tell me is that acceptable to have such a high price. I have heard that Sony, even by having such a high price for the PS3 are make apporximatley £50 loss per console...

what u dont get is Sony wana sell more consoles, to do that they will have 2 drop pricing especially now since x360 got ELITE....i dont think ppl are willing 2 buy the ps3 as primarily a bluray player but a gaming machine, .....

BTW: In south africa the ps3 is aroun $1000-00 with no game,!!
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Old 04-19-2007, 04:37 PM   #4
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Re: PS3 Price cut imminent?

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Originally Posted by far2000 View Post
i dont think ppl are willing 2 buy the ps3 as primarily a bluray player but a gaming machine
Actually, I believe they are. PS3 is much more than just a gaming console and the cheap price makes it quite attractive for consumers who are looking for a Blu-ray player.
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Old 04-19-2007, 05:31 PM   #5
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Re: PS3 Price cut imminent?

Quote:
Originally Posted by mercmad View Post
I doubt Sony will have a price cut...
If you look at it this way, a Blu-ray DVD player doesn't cost less than £1,000 while a PS3, which has blu-ray and plays games is more than half the price, now you tell me is that acceptable to have such a high price. I have heard that Sony, even by having such a high price for the PS3 are make apporximatley £50 loss per console...
Sony will make a price cut it is as simple as that. Almost every manufacturer loose money on a new console which has hit the shelves. If Sony wants to remain competitive they will have to do it. Off course the price won't be cut anytime under the next weeks but in a few months the price will be cut.
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Old 04-20-2007, 04:49 AM   #6
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Re: PS3 Price cut imminent?

Yea, I think they make their money on the games, so once you have bought their console, you have been locked into their system so have to buy those games!

It's a bit like printers, manufacturers make a loss on printers, but it's the ink cartridges where they made huge gains!
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