Is a PS3 price cut part of Sony's break even plan?

It's no secret that Sony's financial team has been on the ropes recently, but a senior exec has said that a price cut could be a factor in the firm's plans to break even in fiscal 2007.

"We may look at the price as part of our strategy to expand the market when the timing is right," Senior Vice President Takao Yuhara told reporters in Tokyo. "Such factors, including price cuts to some extent, are factored in" under the plan to break even in fiscal 2007...

Read Full Story >>
The story is too old to be commented.
UrbanJabroni4294d ago

It seems that this is just the same quote in a smaller format. I could be wrong, but I think we do this "price cut part of Sony strategy" quote every week.

consolewar4294d ago

atleast not in this site. Anyway i want one for $300-$400.

Covenant4294d ago

Remember that Average Jane and Joe will likely go next-gen when either PS3 or 360 pass below $299, and especially when they hit $199. Right now, the 360 is in better position for a price cut, and that would help move more consoles, especially if they can get the Pro edition down to $299. A price drop would help Sony, but they also need to give gamers a reason to plunk down half a grand (or more) for their system: They need more games. Motorstorm will help, but until Sony releases a AAA title (FF, MGS, etc) they still lack a killer app. MS has Gears, and soon, Halo 3.

Sony is seeking 3rd party support to reduce the cost of their system; maybe cheaper parts means that Sony can execute a price drop, even if it means still losing money. Think about it: According to isupply, they're losing about $240 per unit. Cut the costs by $100, and reduce the system's price by $100. You'll sell more units at the same loss, but a greater number of units means: more games sold, more accessories sold, and greater infiltration of Blu-ray, potentially leading to a victory in the HD format wars. Since systems are almost always loss leaders, game companies must get greater attachment to a system to reduce/erase that loss. Sony could drop the price, suffer some (ok, just as much) in the short term, but reap long-term rewards. Same with MS.