PS3 Price Cut Too Little Too Late

Vikingod · May 29, 2007, 09:08 PM

Source: BusinessWeek
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According to Bank of America's Michael L. Savner, a price drop on the PlayStation 3 later this summer or fall would likely not be enough to stimulate sales of Sony's console significantly. Moreover, he believes that the weak PS3 sales and continued shift towards Nintendo's Wii could have "adverse implications" for publishers.

"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 said.

He continued, "Based on our analysis, we conclude that a $100 price cut for the PS3 (we have dismissed a potential $50 cut as meaningless) would still leave the 'all-in' cost for a PS3 console and basic accoutrements 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."

Mr cairo · May 30, 2007, 09:57 AM

from day 1 the only thing thats prevented me even considering one of these is the price .... and regardless of the BluRay drive until it drops to sub £250 ( Pounds not Dollars) i wont be buying one

May 29, 2007, 09:08 PM	#1
Vikingod Int'l Fish Liaison Join Date: Jul 2004 Location: By the light of lamp I sit and type... Posts: 16,197 Rep Power: 112 System Specs	PS3 Price Cut Too Little Too Late Source: BusinessWeek ___________ According to Bank of America's Michael L. Savner, a price drop on the PlayStation 3 later this summer or fall would likely not be enough to stimulate sales of Sony's console significantly. Moreover, he believes that the weak PS3 sales and continued shift towards Nintendo's Wii could have "adverse implications" for publishers. "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 said. He continued, "Based on our analysis, we conclude that a $100 price cut for the PS3 (we have dismissed a potential $50 cut as meaningless) would still leave the 'all-in' cost for a PS3 console and basic accoutrements 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."

May 30, 2007, 09:57 AM	#2
Mr cairo F0rum For Humans Only Join Date: Jul 2002 Location: Slightly to the left Posts: 1,780 Rep Power: 92 System Specs	from day 1 the only thing thats prevented me even considering one of these is the price .... and regardless of the BluRay drive until it drops to sub £250 ( Pounds not Dollars) i wont be buying one __________________ *Please consider Sponsoring my wife for the race for life*