PS3 price cut unlikely as Sony refocuses on profitability

Filed under: Business
http://www.blogsmithmedia.com/www.ps...dollar225r.jpgAnalysts at Lazard Capital Markets believe that a PS3 price cut will be highly unlikely this year, as Sony refocuses the company on profits, not market share. The PS3 has been trailing significantly behind its competitors, Xbox 360 and Wii, in this generation for a number of reasons. However, Sony may opt out of competing in the "console war."

"Console market share appears to be less of a priority; price cut less likely," explained Colin Sebastian of Lazard Capital Markets. "On its earnings call, Sony management indicated the company is now more focused on achieving profitability in the PlayStation segment ... Importantly, management comments also suggest that a price cut is less likely on the PS3 this year, at least in the near term."

Sony does have strong momentum on its side. With more than 9 million consoles sold so far, and that figure expected to double by year's end, things are still looking up for the PlayStation brand.

[Via Joystiq]
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