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Monday, 14 March 2011 09:18

Sony studies PS3 price cut

Written by David Stellmack
ps3_logo

Price drop in the future is likely
Sony has apparently been looking at the possibility of cutting the price of the PlayStation 3 in the wake of the recent cuts that the company has made to the PlayStation Portable. Sony would like to see another price cut in the future, but no timetable has apparently been set yet as to when it might happen; sources tell us that it is likely that the company will wait to see what Microsoft does with the Xbox 360 and then react or make the move to slash their price this fall as they head into the holiday season.

Most recently the PlayStation 3 has been losing in sales to Microsoft’s Xbox 360 and the word from our sources is that Microsoft is apparently looking to slash the price on the Xbox 360 once again. The strategy of slashing the price is due in part to help fuel the sales of Kinect, which many believe would sell better if the price were a bit lower. Microsoft has been making gains in Wii owners that are apparently upgrading to the Xbox 360, and Kinect is apparently helping drive this move for this specific crowd.

It is believed that Sony has accepted that the higher price of the PS3 from the start has hurt sales of the console and the company now believes that they have to be very competitive on price moving forward for the console to continue to have additional penetration in the market space.

Analysts that we spoke with over the weekend indicate that they like a strategy where Sony slashes the price on the console to stimulate sales; but they believe that the effect will only be a short term gain, as it would appear that right now Microsoft seems to be in the driver’s seat as far as their ability to drive sales growth for their console. “Actually, I think a price cut would help Microsoft move more product over the long haul this year into the holiday,” one analyst expressed to us.


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