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Rumored Sony PlayStation 3 Price Cut Will Not Happen


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283w ago - For those of you wishing for a price cut with the PS3 think again.

Sony says that it is losing $50 on every PS3 it sells right now. If they were to reduce the cost $100 they would go from losing 11% to 33%.

This is why it will never happen and why XBOX360 will always out selling ahead. The fact that Microsoft can support losing 33% is why the XBOX360 can get a big price cut.

When Sony has a new console ready then the price will drop, but I believe they need to spend more time on their firmware and extending their warranties than cutting the price of the console. Sony, are you listening?

To quote: In late February an analyst with Janco Partners claimed a price drop announcement from Sony was due "in the next couple days." Nearly a month later, no word on so much as a sales snip.

But Sony's still losing about $50 per PS3, according to Business Week, which pegged Sony's costs at $448.73 per system as recently as December 2008. If Sony dropped the retail price of the PS3 by $100, they'd increase their per unit losses by nearly a quarter ? from 11 to 33 percent.

What's more, [Register or Login to view links] writes that Sony senior vice president of marketing Peter Dille says "there are still no immediate plans to cut the prices of the PS3 consoles."

Janco's Mike Hickey recently repeated his claim that Sony's going to drop the PS3's price "by next month."

The internal business cosmology of economic indices that ultimately dictate when Sony drops the PS3's price ? and by how much ? are impossible to estimate in a planning capacity.

At some point Sony's manufacturing costs will drop sufficiently and the internal bean counter fiscal financial minimums will align with some executive's "tolerable losses" formula, thus setting the cogs and wheels cranking on a price "event" announcement.



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Comments 7 Comments - Go to Forum Thread »

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Alucard's Avatar
#7 - Alucard - 283w ago
And I'll break every single things I ever purchased from them.
if your going to throw away everything you got for the PS3 throw it on the mail box with my address i will pay shipping lol

MaDLeB's Avatar
#6 - MaDLeB - 283w ago
how many post you guys wanna post about ps3 cutting price ? i seen hundred in 10 days ... who care anyway just BUY IT.

mrmiller24's Avatar
#5 - mrmiller24 - 283w ago
i am bored of the whole price cut speculation. sony is a big business, they would have made a price cut if it made sense to, i would rather sony stay in business and kept throwing firmwares at me than make a risky move that could put them under
change the record soon guys?

CyanCaze's Avatar
#4 - CyanCaze - 283w ago
I think your source is a little old... I think it was February PS mag when they said they we're losing 18.90 something a console.

JeffJ's Avatar
#3 - JeffJ - 283w ago
And I'll break every single things I ever purchased from them.
well that just makes you a moron. but if you would like to waste something you have already payed for, even thought doing this will have no effect on the outcome of sony's decision or change anything except for how dumb your friends and family might think you are, by all means go for it.

on a side note. sony could operate at a 75% loss on the console if that means they are getting developers on the band wagon pumping out games like crazy. they could make it up in licensing. there is always to sides to the fence.

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