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Analyst: PS3 Price Must be Reduced by $100 to Meet Sales


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292w ago - Here we go again... Analyst Colin Sebastian believes Sony's forecasts will only be achievable if they cut the price of the PS3 console by $100.

He noted Sony's outlook supports expectations for a PS3 price reduction this year, likely to be some point between E3 and end of the summer.

To quote: Analyst Colin Sebastian claims Sony's forward forecasts can only come into fruition if PS3 price falls by $100.

Sony yesterday [Register or Login to view links] that PS3 unit sales would increase by 3m (30 per cent) in the next 12 months - a figure that Lazard Capital Markets' Colin Sebastian says can only be achieved via a $100 price cut to the machine.

"PS3 guidance suggests pending price reduction - timing and amount uncertain," Sebastian explained in an investor guidance statement.

"We believe Sony's outlook supports expectations for a PS3 price reduction this year, likely at some point between the E3 industry conference in June and the end of the summer, as Sony is able to reduce PS3 production costs.

"A significant price cut could provide the PS3 with a needed shot in the arm. In addition to a $100 price reduction, which would put the PS3 in easier reach of a mass-market audience, we note that Sony has a healthy lineup of upcoming first-party video games planned over the next year, including inFAMOUS, God of War III, Heavy Rain, Uncharted 2 and Gran Turismo 5.

"A price cut would also be positive on the margin for software publishers and GameStop, given lackluster sell-through thus far of the PS3 and the potential for price cuts to generate additional consumer interest in the platform and PS3 software.

"We also believe the sweet spot for console sales is below $300; thus, a price cut of less than $100 would likely be perceived negatively by the market.



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#8 - D3M0N2009 - 292w ago
D3M0N2009's Avatar
Seems like today any two bit moron can become an 'analyst' and tell a corporation how it should run its business, theres a reason why the PS3 costs the amount it costs and for the features you get with it its a damn good price. I think the best thing for Sony to do is remove all the extra features from a PS3 and sell it as a 'core' pack like Microsoft did; (i.e. change controllers to wired ones, cheaper blu-ray drive, no WiFi, no hard drive included).

#7 - MaDLeB - 292w ago
MaDLeB's Avatar
yeah they will loose money big time + i own 2 consoles elite and ps3 and since both console same price i still find ps3 cheaper then the elite because some options you have to buy for the xbox to match the ps3 like live and wifi + rechargeable batteries for the controller and no bluray i think microsoft should add these options for the xbox or drop the price for the elite but not for the ps3.

#6 - SHSoccerDrpep - 292w ago
SHSoccerDrpep's Avatar
This will be get for the Playstation community if they do give the console a price cut. Sells would increase because people would now have enough money top purchase a PS3. I agree that this would help but Sony may not lower the price because of how much it takes to actually make the PS3. They may end up losing money.

#5 - turpsicon - 292w ago
turpsicon's Avatar
i think a price cut, is bound to happen, and it's been proven.

If you think about the first launch of the ps1 and ps2, the price was quite hefty (if you live in South Africa).

When the ps2 was released, they were selling it here at about R2500 +/- , rumours went around that there would be a price cut, and it did, from R2500, to about R1600... (which it's still going for today, the slim line is less)

So the price cut on a ps3 is bound to happen, i just don't know about $100 though. It could happen...

#4 - BigBlarg - 292w ago
BigBlarg's Avatar
To increase the sales of the PS3, create a modchip or find a way to play backups on it. It will start selling a lot more that way.

 

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