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Sony's future price cuts influenced by the um... unhealthy USD

StarJet | April 05, 2008 | Industry News | Playstation 3 Playstation Portable

So, the dollar is not doing quite well these days. It's slowly going down and the Yen is slowly picking up. This means that Sony has somewhat lower production costs, and as a result they gain more profits. This in turn gives them the ability to do further reductions on their products (Mainly the PS3).

"As to the situation of the US dollar's weakness in the medium to long term, we already have a strategy to deal with it," said Ryoji Chubachi, Sony president, according to MSN Money.

"We will lower our production costs as possible as we can and we will choose production sites to cope with the industry's weakness, and in the short term, we will try to accept more orders."

For every JPY 1 gain versus the US dollar, Sony loses around JPY 6 billion (USD 58.3 million / EUR 37.5 million). In the past year the yen has moved from an exchange rate of 111 to the US dollar, to 102.5 - representing a loss of around JPY 51 billion (USD 496 million / EUR 318 million) for Sony.

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Comments

Comments with -10 or lower "thumbs" are removed from display.

1 thumbs!
Guticb | April 06, 2008

Haha, I love the picture.
0 thumbs!
theundertakergonzo | April 06, 2008

This is interesting to say the least. But i see there method to lower the prices to gain profit as they will do more sales. It's a good idea for them to say the least.
1 thumbs!
Fusion | April 06, 2008

I will admit the dollar is weak, but hey, if that means we get price-cuts on video game systems, I'm all for it.
- 1 thumbs!
  StarJet | April 06, 2008
  
  You're parents aren't gonna be happy.
- 1 thumbs!
  slumpy monkey | April 06, 2008
  
  Trust me.. You wont be saying that when your savings are worth jack.
0 thumbs!
Chris7689 | April 06, 2008

when exactly will these price cuts go into effect??