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Sony may consider PS3 price cut this summer - Pachter

Wedbush Morgan analyst Michael Pachter has stated that Sony could offer a PlayStation 3 price cut as early as this summer, due to a decrease in manufacturing costs.

The analyst also expects that Sony's PlayStation 2 will be the lead platform for a number of high profile game releases over the next four months, with last-gen software outselling the latest releases for big budget machines.

"It is possible that Sony's cost of production for the PS3 has declined to the point that the company may consider a hardware price cut some time this summer, and we may see a price cut for the PS2 before the holidays," commented Pachter.

Movie tie-ins will be leading software sales over the coming months, according to Pachter, allowing publishers to reap the benefits of the PlayStation 2's massive user base.

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Babylonian3814d ago (Edited 3814d ago )

if this is true then it is sooner then I expected. Well it's only for the better I guess.

gta_cb3813d ago

i know that Sony wouldnt admit to this far before it happens but if it is going to happen this summer, it will put them into a good possition for winter.

kewlkat0073814d ago (Edited 3814d ago )

over and over again with these analyst. If they were to drop the PS2's price, what incentive would be there for users to go out and purchase the next-gen PS3?

Looking at the Gaming library of the PS2 and a low low price(if they were to cut), even lower then the Wii's , you might get more kids buying the cheapest console this X-mas with like 15 games and gazillion peripherals.

I would hope Sony want gamers to jump unto the PS3 sooner then later.
But I understand, Later just might be beneficial because, well PS3 doesn't have that much going for it as of now. Since most gamer are either Folding, watching movies, or playing 2 good games.

Then of course Analyst always forgets to mention what might the competition do if one cuts it's prices, especially when the wii and xbox360 are more closer to being profitable then Sony is.

Still a PS3 price-cut would be nice, but I wonder by how much? $500 Ps3 plus games, tax, controller, warranty still shoots you over $600 and close to $700+ bucks.

candystop3814d ago

I don't think so because remember Sony is in it for the long haul so over a course of ten years why would they drop it and loose even more money! Could this be a sign of weakness or is this just an attempt to have more people hold on before just saying [email protected] it and buying a 360!

kewlkat0073814d ago

This is a sign of weakness.

If there is a Price-cut(which I doubt so soon), that would be the fastes price-cut ever.

Also does anybody think Competition has something to do with it? Something Sony was not used to like years ago. I remember it took me a while to get a PS2. I was a poor college student, being raped when buying books. Of course the PS2 was a $300 machine. I'm making more money now but now its a $600 machine.

I feel bad for college kids that really want to game on a next-gen console, with a nice HDTV. Stay in school, you'll be order to afford everything after.

techie3814d ago

fastest price cut ever? Are you sure about that? The xbox cut its price in the first 2 months by £100. The PS2 dropped its price in the first year.

"sign of weakness"...who's that a sign to? We all know its too expensive and its greatest weakness is its price...so lowering it can only be a good thing. Is a consumer going to say "oooh they dropped the price, that means its weak"...or will they think "oooh they dropped the price, it was too expensive in the first place".

WilliamRLBaker3814d ago

Just like the ps3 demand was super high in UK for the original XBox when it came out, after launch demand dropped and retailers got scared and price dropped it, the same thing like i said before is happening to the ps3, they didn't price drop it cause the system wasn't good...ect they price dropped it cause the demand all most stopped dead only a week after launch.

kewlkat0073814d ago (Edited 3814d ago )

this was MS first Console. MS had 0, zip, Nadda Market-share. This is something that was expected from the new competitor, then again they still lost a lot of Money at the Cost of establishing the brand Name XBOX. The XBOX did not die in vain Bro. Look at where we are now..

Since you wanna tit for tat DEEP, like I know you would. Sony on the other had Had huge Market-Share, with a lot of followings from the PS1 era.
Dropping the price after 6 months debut of the PS2 is not something they would of ever done. Especially, When you have like 80% Market-Share, Great games, hardcore followers, as well as casual gamers, plenty of Exclusive deals, It's just not something you do unless you wanna cut into your PROFITS.

It's proving to be that, if the PS3 has a price cut so early, it's more so because of Competition, and the outrages price from the getgo. With the PS2 that was not the case. So a weakened BRAND DUE TO COMPETITION, LOST MARKET-SHARE and LOST EXCLUSIVES. Now I know DEEP ,you don't have a Ps3 because of the Price so continue wishful think.
*********************
-PS2 Price Cut:
NORTH AMERICA
*US$299.99 (October 26, 2000, release date)(CAD$449.99)
*US$199.99 (May 14, 2002)(CAD$299.99)
EUROPE
€500 (November 23, 2000)
€249-€279 (August 27, 2002)
*********************
Not sure where you getting your 1 year from DEEP. Do you even own a PS2 and Xbox? I remember I was in college and couldn't afford the Sh!t, even though I ended up getting an Xbox and the PS2.

*DEEP-#3.2"We all know its too expensive and its greatest weakness is its price...so lowering it can only be a good thing"

At least that's what you and whoever the "WE" is? thinks. No great games out early on besides 2 decent ones. Blue-ray Trojan, while it's my opinion, I could go on and on about Sony's WEAK strategy. Stop kiddin yourself DEEP.

I know you want a PS3, so do I, eventually when I think it's worth it, apparently you must not think so yourself, since you do not have a PS3.

techie3814d ago (Edited 3814d ago )

Kewlkat. If the PS3 was cheap it would be gobbled up even without the games. Same was true of the PS2...no games, but price was more respectable. The PS3 is selling a tad more than the 360 in its first year...and that's at a stupid price...dont think it would be slightly diff if the ps3 was priced at $400?

SOny's strategy on games...they arent out now, doesnt mean they wont be when the price drop comes does it.

It doesn't matter that Sony have always had a market share...the console is too expensive. Why is their such hostility to it in America? Because of its price. It's TOO EXPENSIVE for a console without games. It's TOO EXPENSIVE for a console thats "just a blu-ray player"...the price is where all the b*tching starts and ends.

Had a ps2 from launch my friend...still have it now. Bought it in the states actually. You've quoted this "# €500 (November 23, 2000)
# €249-€279 (August 27, 2002)" for ps2...when I was clearly talking about the UK

"GB£299 (November 24, 2000, Launch Price)
GB£269 (June 2001)" - price drop of £40 by June the next year...the PS3 won't be doing it that soon. But wait that's not all the price drops the PS2 had in its first year...no oh no GB£199 (September 28, 2001) - it dropped a staggering £100 in its first year...it had TWO price drops. They dont have a recorded price drop for Europe as the countries differed in their response...thus the only official number they can get is for 2002. But the UK are open with this info...and the PS2 had two price drops, first down £40, then down another £60. So I'm wrong now am I?

What does the ps3 need Kewlkat? Games of course, but they are on their way. But what does it need more than that? A price drop.

ps. my wish has come true. I can now get a ps3 for £390 with a free game and hdmi cable...when it was £425 at launch. The longer I wait the less it sells, meaning the quicker retailers do bundles and drop the price...I can wait until the begining of June. I will then have an exclusive every month from then on. Best time to buy it IMO

And remember we've been here done that - PS2 had no good games until the end of its first year. Everybody was screaming it was weak etc. It's price was more competitive however, yet 70% of its sales occured after the first price drop.

kewlkat0073814d ago (Edited 3814d ago )

Deep -"Kewlkat. If the PS3 was cheap it would be gobbled up even without the games."

Your starting to sound arrogant for 1, just like Sony said the same thing before launch.
********************
"We have built up a certain brand equity over time since the launch of PlayStation in 1995 and PS2 in 2000 that the first five million are going to buy it, whatever it is, even it didn't have games," -Reeves
-Remember that-
********************

If that's not Arrogance, then I don't know what is, because I have had all consoles and I didn't go out and spend $600, like SONY predicted.

************************
PS2's Price-Cut
United Kingdom
* GB£299 (November 24, 2000, Launch Price)
* GB£269 (June 2001)
You call that a HUGE Price-CUT? After Tax, Games, Warrantees, and sh!t?
*************************

Well as far as Prices being cut in the UK, I don't give a Rats @ss about the UK. I live in the US and thats what I was talking about, since this is where my @ss had to wait to purchase PS2. Worldwide it was really 2 year wait. That's my point. With the way the competition is, SONY wouldn't dare leave the PS3's price at $600, regardless of what you think is the reason, besides the reduction of manufacturing cost.

Deep-"What does the ps3 need Kewlkat? Games of course, but they are on their way. But what does it need more than that? A price drop."

I'm sure Manufactoring cost for the PS2 was reduced early too, but how would we have know?, especially when they were making so much money with that User-Base. Let's not forget, since you say the PS2 didn't have much games, but who cares they had MASSIVE third-party TITLES all to themselves. At least you were looking forward to something. Plus they hit the DVD Craze just in STRIDE to have a cheap DVD player.

With the PS3, that is not the case anymore, since they are loosing these exclusives to the COMPETITION. Of course they still have some of their BIG guns.

Sh!t is different this time around, so Stop doubting COMPETITION has nothing to do with it.

I'm glad your able to purchase a PS3, the fact that you even thought the Price was TOO EXPENSIVE from the start, tells us something. So where did Sony go wrong? with this Over hype, Overpriced product? You never state why you think SONY"s EXPENSIVE STRATEGY is not working early on,

While the PS2 sold like hot-cakes regardless. Well I have an Idea and always will.

techie3814d ago (Edited 3814d ago )

£425 is very different to £299...and then £199.

Arrogant? My comment was not like the quote you provided. My reference is a thing called the Wii. If the Wii was priced at $599 without games...do you think it would be selling as well? No. The Wii is selling well because one its gadget and two its price. The price is essential to the strategy...yet it has no games, and noone cares when they buy it.

"I don't give a Rats @ss about the UK" - now that's arrogant. And slightly strange, since my original remark of the Xbox price cut was the UK..."price cut of £100" and you responded to that...yet when I say the PS2 had a price cut of £100, you don't give a monkeys?

The ps3 is too expensive. My view has remained the same. WHy am I buying the PS3? For future games that I know about...but the general public doesn't know about them. Any of them. You think they've heard about Heavenly Sword, or Uncharted...or have they seen anything of Ratchet on the PS3? No. I have...

Gamers Day and E3 might do something about that...but mainly it's down to marketting the games.

The PS2 price drop was
* GB£299 (November 24, 2000, Launch Price)
* GB£269 (June 2001)
* GB£199(September 28, 2001)

And yes I call £100 price drop big. Plus that includes tax...we work a bit differently in the UK. The price something says includes the tax...we dont pay tax on top of it. You don't think £100 is a big price drop for a consoles first year? I do.

+ Show (4) more repliesLast reply 3814d ago
PS360WII3814d ago

First they don't work with the company directly so have no real understanding how they think. Nor do they know anything more than to crunch numbers and predict what might happen. Nostradamas predicted a lot and only a wee fraction of those came true (or did we just read too much into his babbling) Sony is getting some parts for the PS3 cheaper now, why would they reduce the price they still need to make money off the darn thing so I don't think a price drop is happening too soon.

techie3814d ago

happening this year. Just like it did with the Xbox...and just like it did with the PS2 in the UK

WilliamRLBaker3814d ago

Sony seems to have much more to lose price dropping now, then later.

Because it costs them so much more then 360, or wii to produce the system, dropping the price now will only incite a price war. Microsoft dropping the 360's price and nintendo maybe even dropping the price of theirs, Microsoft and nintendo make profit right now off each unit sold sony does not, Microsoft and nintendo are in a much....more comfortable situation to drop prices then sony.

sak5003813d ago

I think they will drop the price keeping in mind their checkered history of lousy decisions since E3 05.

I disagree with deep regarding everyone will gobble up ps3 if the price is reduced. What will they be doing unless there is some justification for this purchase. It might be picked up as a cheap alternative to bluray player by people who have hdtvs but not people who have sdtvs. Gamers who want to experience next gen would wait for some good games to come, most of which are not seen anywhere on the horizon. Sure there is lot of talk about of big line up of games coming this year but we have not seen any proof that whether they will be actually released this year or not. And if the AAA titles are coming only in 2008 then this year will again be a bad one for ps3 owners, atleast those who dont have other consoles.

Sony knows its in trouble due to lack of hardware sales and lack of AAA titles which devs are deliberately or otherwise delaying till 2008. Its a catch 22 situation, sony needs AAA titles to increase their hardware sales but the devs need the larger install base to maximize their ROI.

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