PS3 price cut pointless, says Bank of America

[Triv1um]

Via CVG

Price cut later this year wouldn't be enough to "stimulate sales" of PS3 says Bank of America bloke

While everyone's crying been out for a PS3 price drop since the console launched in March, the Bank of America's Michael L. Savner has said he doesn't think it would be enough to stimulate sales of the console significantly.

"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 third-party publishers," Savner said.

He continued by describing a $50 cut "as meaningless" and added that it's down to the games to put PS3 back in the spotlight. "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."

Savner believes that Sony has made a number of mistakes and consumers are more price sensitive than Sony anticipated. To make up more ground, Savner says Sony would actually need a $200 price cut, but doesn't see that happening.

[ICE]

microsoft will probably cut their prices by $50 or more this summer as well. a price cut wont work unless they offer several things only for ps3 owners AND a price cut. i dont mean gimmicks because thats the last thing ps3 needs.

$600 for something that does what a computer can do better.... they need more things like HOME and a $100 price cut(which they cant really do this soon anyway..)

sony can still pull this off but its gonna be tuff. they are going to have to pull out all the stops and i expect they just might.