PS3 Needs $200 Price Cut To Recover

Via GWN (GameWorld Network)

An analyst from the Bank of America has been speaking with Gamedaily, and says that he believes Sony must cut the price of the PS3 by $200 in order for it to maybe recover next year.


The analyst, Michael Savner, says:

"While Sony could cut the price by $150 - $200, we view that as less likely given that it is already losing approximately $200 per console at $599, based on our estimates ... Offsetting a potential price cut are decreasing production costs, which should improve significantly this year. We estimate that the loss per console could decline to about $50, assuming Sony does not cut its wholesale prices. Bottom line, we don't expect Sony to make up meaningful ground against the Wii this year."

Savner goes on to talk about how the Wii is hurting the industry, because publishers invested in next-gen graphics and tech, and if the Wii continues to dominate then that money will be wasted somewhat. He also comments that Nintendo doesn't play well with third party publishers.

Savner's entire interview seems to lead us to one conclusion - that it's in the best interest of the industry for the PS3 to do well.

I seriously think a massive price cut won't save the PS3.

yea me too, ps3 is too far down, mabey in a few years it will have broke even

they cant cut the price. they're already selling at a $200 loss per system..

if some killer games come out for it it will succeed.

Sony got a little bigheaded with regards to the console industry.

Its far too expensive for an idle purchase and has no "must have" titles yet.

A price cut will only make things harder on them. There is no way Sony can fix their problem immediately or even in a year. Progress will have to be slow... but Sony should be ashamed of themselves for getting into this situation in the first place. As wraggster said, "Sony got a little bigheaded".

Quote:

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Originally Posted by wraggster

if some killer games come out for it it will succeed.

Sony got a little bigheaded with regards to the console industry.

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thankfully the games are coming. though i dont think sony were trying to be big headed. i believe they tried aiming too high, and the realisation that they couldnt make the console they wanted too panic set in and all the [huge] barriers came up.

im happy with the purchase though, and for me £425 spent on a console i use every week is better than spending £180 on a console which is currently in its box.

the only big title will be Metal Gear Solid 4

The thing of it is, either way its a lose-lose for Sony, they are losing money now, because everyone is buy a Wii rather than a PS3, less consoles equals less money selling games.

If they cut the price, they lose money immediately, but the more people with PS3s the more games sold, more money in Sony's pockets later.

Sony NEEDS to cut the price and SOON. They cannot afford to have people waiting 3 years to buy a PS3 because the price is astronomical...