Sony PS3 price cut expected, due to mountain of unsold consoles

Mishtram | April 13, 2007 | News | Playstation 3 Gaming Tech/Hardware

A number of skeptical analysts believe that, due to a large stockpile of consoles and losses when it comes to profit that an attempt will be made by Sony to attempt more market penetration by lowering the cost of the consoles. Sony's spokesperson responded that there are no plans to lower the price, for at least 2 more years.

Skeptical analysts are still predicting a price cut for the PlayStation 3 this year, even though Sony may be about to reveal encouraging profit forecasts, according to reports from Japan today. Japan's Nikkei newspaper today claimed that Sony is expecting to improve operating profits to $3.35 billion this financial year – the paper did not identify the source of its information.

“We think Sony will find it hard to get through the financial year (which began this month) without cutting the price of the console, and expect further game segment losses of over $1 billion during that period”, commented researchers from leading Japanese investment firm, Nomura, in a private briefing to clients this morning.

Sony claims that it does not plan to reduce the PS3's price for at least two years, according to statements a spokeswoman made to Dow Jones Newswires in February. The company emphasizes that the product is 'a complete package', freeing users from the need to buy add ons.

News Story attached to:

PlayStation 3 Hardware [PS3]

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Most recently commented on by Mastix on Apr 15, 2007

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Comments

0 thumbs!
George | April 13, 2007

So they're lowering the costs of the PS3 in two years?
0 thumbs!
Krunal | April 13, 2007

Unsold consoles? As far as I see the consoles are selling well, just because they are available doesn't mean that they aren't selling. The Wii is hard to come by because they just haven't made enough of them.
- 1 thumbs!
  Teodor Tenchev | April 13, 2007
  
  According to some statistic the xbox360 and nintendo wii are selling better at the moment. Probably because they have been on the market for a longer time. The Wii is much cheaper but I'm not interested in it because I don't think it has much potential compared to the PS3.
  - 0 thumbs!
    Mishtram | April 13, 2007
    
    On top of that, a lot of the releases which were ready for the PS3 at the beginning were mostly sports games with updated rosters and a few racing games, etc. There has been no major releases, such as a GTA or another Final Fantasy, etc, which will be ready for this console for a good few months. The Wii and the 360 have a lot of marketing power when it comes to games like Gears of War, and Twilight Princess.
- 0 thumbs!
  Djrocks | April 13, 2007
  
  What do you mean? Nintendo Make A extremely huge shipment of Wiis on it's Debut, The reason it's hard to find is because it's fun and catches the eyes of A new age group. I just Think Sony is losing this battle (I'm not saying it's bad I'm just saying there not beating the other brands of gaming) because of the High Price and the Lack of Great Games.(I'm not saying there is none, I'm just saying there's not many)
- 0 thumbs!
  Sonic Flash | April 14, 2007
  
  The Wii has sold doubled what the PS3 has. You can't really argue that it's because the Wii didn't make as much when they're lapping the PS3.
0 thumbs!
Teodor Tenchev | April 13, 2007

I didn't need to read this to 'forsee' it... There will be a reduction but nothing major now.
0 thumbs!
mettaur | April 13, 2007

I knew they'd give in sooner or later. PS3, here I come.
1 thumbs!
Gary15 | April 13, 2007

They may need to, a lot of people are put off by the price, I so nearly didn't buy one because off the £450 price tag in the UK and I always go for the new consoles right away. But yeah from what I've read the xbox360 and wii are selling better, the wii in particular probably due to the price tag. Though my personal opinion at the moment is that neither the ps3 or wii have much in the way off games, September looks like it may be a good month for the ps3 though.
1 thumbs!
madtown | April 13, 2007

Hehe Sweet I've been wanting a PS3 but the price was waaaay out of my league this means I can probably get one in a few years.
0 thumbs!
Jon24hours | April 13, 2007

I haven't any of the new Gen Consoles because of their prices, so a price decrease would be nice.
0 thumbs!
NyffTotal90 | April 13, 2007

I think it's great that they are now planning a price cut! I might actually get one in a few years now, because I really don't want to fork out £450 for one tbh.
0 thumbs!
Kokoro | April 13, 2007

Too bad it's not for another 2 years.
1 thumbs!
fox93thefool | April 13, 2007

Even though, if Sony doesn't want to lose a ton of money, they will probably be obligated to lower the price. I'm looking forward to this, since I've always bought Sony consoles. I don't really want to pay 600 dollars.
0 thumbs!
Dragons Call | April 13, 2007

Ten dollars say they may drop the price by like $50-100 dollars...

It's still not quite going to be enough to warrant a buy from me... It doesn't have a lot of titles. Yes, its shiny and pretty, but with so little reason to stray outside of the 360, it'll have to do better than that.
0 thumbs!
Sakura | April 13, 2007

I don't really care if the price goes down or not. I got mine a month after the release as a birthday present, so it doesn't effect me. Hopefully it will help the PS3 sell better though.
3 thumbs!
OOTER | April 13, 2007

Hmm, I would be surprised to see a price drop anytime soon. Especially not here in the UK. Sure, loads of stores here had many consoles left on the shelves on launch day but the PS3 actually out sold the Wii and 360 in their respective launch weekends in the UK

"A reported 165,000 PS3 units were snatched from shelves, besting the Wii's 105,000 launch units and the Xbox 360's 70,000."

Although you have to wonder how many Wii's or 360's would have actually sold on launch weekend had there been the same amount available as the PS3. There were 220,000 in the initial shipment of PS3's whereas the Wii only had it's 105,000 and the 360 it's 70,000 to sell. Though all this points to is Sony's ability to deliver it's product in the quantities required when Nintendo and Microsoft failed to meet demand.
0 thumbs!
Redalert501 | April 13, 2007

The PS3 is a great system, but it's kind of expected with a 600-dollar fee.
0 thumbs!
Supernouva | April 14, 2007

Two years!! This isn't gonna be good for the ratings.
0 thumbs!
Gary15 | April 14, 2007

Interesting stats there OOTER, I got the ps3 on launch night, I must admit there were a LOT of people there, I was in a queue off about 300 to get mine.
0 thumbs!
Guticb | April 14, 2007

Don't expect a prce cut.
0 thumbs!
dmf_dynasty | April 14, 2007

I'm expecting a price cut about this time next year, to start off the financial year. Once the buzz dies down even more, they will have to. They definately won't cut it this year though.
0 thumbs!
Mastix | April 14, 2007

Hah, it felt good seeing that the wii was always sold out but PS3 was always in full stock. It made me laugh.
0 thumbs!
Rizzy11 | April 14, 2007

Damn, two more years! Well, I was actually thinking of getting a PS3 in two years time...
0 thumbs!
black doom | April 14, 2007

I am glad that I see the Wii and Xbox360 as sufficent for me.
But hopefully things will come out close, I mean Sony's plight was funny at first but if things don't change it will just be sad.
0 thumbs!
dcbake | April 14, 2007

If they don't cut the price till then I doubt I'll ever get one.
0 thumbs!
serpent | April 14, 2007

Looks like iam getting the PS3 in 2 years then..
0 thumbs!
Ultrasuper X | April 14, 2007

Good, the ungodly expensive system is getting a big price cut. I may even be able to get one.
0 thumbs!
Supernouva | April 14, 2007

Now the question is, how much the price cut will be? $50? $100? $150?
0 thumbs!
Wookie King | April 15, 2007

I wouldnt doubt that price cuts happen within the next few months. With all the bad hype and high prices many people are holding out. If sony doesnt lower prices I think they will stay at the bottom.
- 0 thumbs!
  Mishtram | April 15, 2007
  
  I wouldn't be so sure there, Wookie King. Even if they were getting bad press and all, a lot of people seem to be holding out for the release of the big names. There could be a massive profit jump in a few months.
0 thumbs!
Mastix | April 15, 2007

I won't buy it unless it's under $400 dollars, and even then it's unlikely.