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Blu-ray laser shortage ending; PS3 price cuts should follow

Taiwan-based makers of game consoles and components say that the coming end of Blu-ray laser packaging shortages should result in a PlayStation 3 price cut, perhaps as much as $100. The question is whether or not Sony will pass on the $100 in reduced costs to consumers, or if the company will choose to recoup losses stemming from the high manufacturing cost of the console.

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arstechnica.com
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Amplifier3846d ago (Edited 3846d ago )

Until we start seeing the leaked info from retailers...I don't believe it

@mp

samchris3846d ago (Edited 3846d ago )

Even if Sony's production cost drops, I think it will be a while (another year possibly) before Sony passes the savings on to the customer. They have to try to make some of their money back on the initial PS3 sells. Let us not forget that Sony is currently selling PS3's at a lose.

Vojkan3846d ago

You never make money out of hardware but on software. That is why you need more hardware to sell so you can make money on software, its that simple. For example Sony is "making" only 8 bucks on each PS2 sold but that is ok, they will make a lot of money on software. As they do with PS2 and did with PS1

Dlacy13g3846d ago

So their sales are not anything earth shattering. And I think we can all agree that it is complicated by two main points, One it has a higher price point and two there is no real onslaught of killer apps.

So what can Sony do at this early stage of the game? First they can lower the price and eat the cost savings they would be getting from manufacturing breaks just to try and gain more market share. Or They can wait it out, let their killer software aps hit the market and recoup costs via manufacturing discounts and hope the software will drive sales.

From a business perspective the 2nd option is a much more viable model for business to pursue this early in the game. Sony could put themselves in a very dangerous position if they continue to eat the high costs of the PS3 and not gain market share. IMO that first option just isnt going to happen in year one of the launch. They will most likely have to do a price cut in 2008 but 2007 is just way too early.

Look for Sony to really push their internal studios to crank up the software for the Holiday. Killzone 2 better show and Heavenly Sword along with Lair are becoming more and more must hit titles for Sony. I can't imagine how damaging it could be if those two titles are less than 8's on all the review sites. Sony needs them to be major hits now.

MetalProxy3846d ago

The price will not change for awhile now. When more games and Home come out the price will not be an issue. The only problem is your saving habits.

Silverwolf3846d ago

they got rid of the 20GB version for a reason.

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