Even though the PS3 is losing Sony a ton of money at the moment, the company is apparently seriously looking at a potential price cut for the next-gen system. A senior Sony exec told reporters that it's an option that may be used to expand the market.
Sony's PlayStation 3 was blamed just recently for bringing down Sony's profits, and now just one day after Lazard Capital Markets analyst Colin Sebastian said that a price cut for the console shouldn't be ruled out for this year, a senior Sony executive has gone on record saying that a price drop is an option to consider.
Although no decision on a price cut has been made just yet, according to an Associated Press report, "Pricing is among the factors Sony Corp. is studying as it expects to break even in its money-losing gaming business next fiscal year." Keep in mind that Sony actually lowered the PS3 price in Japan by about 20 percent before the console even went on sale.
"We may look at the price as part of our strategy to expand the market when the timing is right," Sony Senior Vice President Takao Yuhara told reporters at the company's Tokyo headquarters.
The obvious question, however, is: How can Sony realistically afford to bring the price down on the PS3 if the company is losing upwards of $300 on each unit sold? Moreover, Yuhara said that total annual loss at Sony's gaming division for the fiscal year through March could turn out to be even worse than the 200 billion yen ($1.6 billion) that the company previously forecast.
Nevertheless, Sony's plan to break-even during the next fiscal year in the gaming business actually does factor in price cuts. "Such factors, including price cuts to some extent, are factored in [the break even plan]," explained Yuhara.
A price cut would be a risky financial move for Sony, but Sony apparently isn't averse to taking risks these days. And if the company is able to streamline the production process while lowering the price and introducing "AAA" software at the same time, it's a strategy that could ultimately pay off.
from: http://biz.gamedaily.com/industry/feature/?id=15122
fuck sony. nintendo for life
