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TGS 06: Analyst: PS3 price drop a sign of 'weakness'

Industry analyst Mike Wallace issued an investor memo today reacting to news that Sony intended to drop the price of the low-end, 20GB PlayStation 3 in Japan.

Wallace, who covers the game industry for UBS Securities, called the move "a questionable business decision and a sign of weakness" on the part of Sony.

Stating that Sony said it made the move "in response to consumer complaints about the console's price," Wallace paints the decision as window dressing at most.

"This price cut is only on the 20GB version of the PS3 in Japan, which in our view is not significant given that the US is the key market for the PS3," Wallace said in the memo.

He emphasized that even at the lower price point, the model remains more expensive than either the Xbox 360 or Wii in Japan, and he goes on to further dilute the impact of the price drop by reiterating his view that the 60GB PS3 model is likely to be the more popular one in Japan, regardless of pricing.

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EasilyTheBest3775d ago

A price drop before its out??????
So Sony not so confident now then?
Never heard of such a thing EVER

NoUseMerc3775d ago

Its because of the responce they got when the poll in Japan was taken about the Wii.

Dragonopolis3775d ago

Price of products are not considered set in stone until the products have "Actually" got on the market.

A sign of weakness for Sony would have been releasing the PS3 at the original price then dropping the price three to six months "after"
launch.

This is just good marketing by Sony not a sign of weakness.

News agencies and Xbox fanatics are just upset at the fact that Sony has created a console that is "accomplishing" what they said it would do and pricing it competitively.

The fact is Sony is doing it "right" and everybody is on their backs for it.

By Including the HDMI on the 20GB PS3, lowering the price, and getting 1080p support in games from game developers in the "first generation of titles" is set to take the entertainment industry by storm.

Oh, yea I almost forgot, the PS3's first-gen games are looking darn good!

calderra3775d ago

BECAUSE THIS IS FOR JAPAN ONLY, AND IT'S ONLY ON THE 20GB SYSTEM!!!!
*cough*

Why the **** would you need to do that ONLY in one territory, and ONLY on one SKU?

Because you saw a weakness. Hence the article.

calderra3775d ago

^^^Just trying to be clear.
Only Japan. Only 20GB. It's not across-the-board.

BlindPublic3775d ago (Edited 3775d ago )

You’re correct you obviously know more than an industry analyst whose job it is to follow these things.

THAMMER13775d ago (Edited 3775d ago )

It is a indication that they are listening to us gamers. If you really think about it they could take out the BR drive and sell it for $300.00. But this article is flame bate I hope no one bites. PEACE

zypher3775d ago

so, analyst complain about the high price: Sony reacts to its consumer's complaints about the high price and decided to a) lower the price by $100 and b) include the most differentiating feature between the low-end and high-end models--HDMI; and this STILL isn't enough to sway the naysaying analysts? like someone up above said: i don't see how this is a sign of weakness that Sony is trying to listen to its consumers, is trying to compete, and is lowering the announced price of their product when said product isn't even set-in-stone (as it isn't released yet).

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