PS3 Price Cuts Are Certain

In an interview with Sony’s CEO, Sir Howard Stringer, that was published today revealed that price cuts to the PS3 are certain, but the extent of the price cuts are not yet known. Stringer declares that the company is trying to maximize the price cut’s effect, which probably means that analysts are busy at work right now.
“Although Stringer declined to provide a target range for the cuts, researchers expect that Sony may trim the price by as much as $100 before the holiday season, hoping to spur a fresh wave of sales. A combination of a cut and ‘break-out’ games would revitalize the console, Stringer says.”

“Nintendo Wii has been a successful enterprise, and a very good business model, compared with ours… because it’s cheaper.”
Stringer believes that the high price of the PS3 was one of the main reasons it suffered from low sales figures, as compared to the Wii, which has been selling for less than half the PS3’s price since late 2006. Recently, the PS3 has widely been considered a burden on Sony. On the one hand, Sony’s Bravia LCD TV product line and popular movies such as Casino Royale and Spiderman 3 are highly successful hits. On the other hand, there’s the PS3, which has sold poorly and did not reach its recent shipping target by a mile (fell short by about 500,000 units). If Sony does trim the price by $100, that will pretty much put the PS3 on par with Microsoft’s Xbox 360 Elite.
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