- Today Don Reisinger
of CNET wrote an article detailing how Sony needs to cut the price of the PlayStation 3 console, but just can't do it.
Sony's apparently unwilling to admit it, but with all the financial trouble, Sony is trying to turn a profit and limit losses in order to ensure shareholders happy.
Thus, Sony is keeping is the prices high but its not selling as many units as desired, however Sony is now finding out that it's not a good time to be a value leader instead of a cost leader in this difficult economic climate.
To quote: Sony knows this and although it's unwilling to admit it, the company seems to want to compete on price too. But with financial troubles unlike anything it has ever seen, Sony is trying to turn a profit and limit losses to keep shareholders happy.
In essence, Sony finds itself in a dangerous position: it needs to make money, so it wants to keep its prices high, but by doing so, it's not selling as many units and its goal of becoming profitable byway of the "value" argument simply isn't working. And as the recession deepens and consumers are looking to save money wherever possible, Sony is quickly finding out that it's not a good time to be the "value leader" instead of the "cost leader."
I truly believe Sony's gaming division...