LCM: Wii Production Up, PS3 Production Down?

Following Nintendo's recent media and analyst summit in Seattle this week, Lazard Capital Markets analyst Colin Sebastian has made some interesting observations in his most recent report. Perhaps his most significant comment was on the production rates of the Wii and PlayStation 3.

Sebastian thinks that despite increased Wii production, shortages could persist. And he sees slowing PS3 production as a sign that a price cut on the console may actually not occur this year.

"We believe that Nintendo may be near its targeted monthly Wii production of approximately 1.5 million units per month, based on comments made by Nintendo, as well as retailers such as GameStop. Based on our retail channel checks, demand still appears to exceed supply, and we believe that shortages could persist through the remainder of the year, including the key holiday period," he said. "Reports from Asia also suggest that Sony has reduced production of PS3s, at least temporarily, which may suggest that a price cut is less likely this year. We continue to believe timing of Sony's first PS3 price cut is likely to accompany a stronger software release lineup as well as further cuts in production and component costs."

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CyberSentinel4799d ago

Sony will NOT do a price drop this year.

They are the most stubborn company I know when it comes to price cuts.

DrWan4799d ago

The slow down in production is to for the redesigned of the 65nm line and addition of rumble to controller.

ITR4799d ago

Well it's not for the PS3 controller.

The rumble will just end up going back into the handles again.

DrRage774799d ago

i have a 360 and have no desire to get a ps3, but if sony does not drop the price of the ps3 THIS YEAR, they will be making a big mistake. they really need to expand their install base in order for better software titles from third-party developers. sony has a much better lineup of games coming out in 2008, but the problem is that micrsoft has a big lineup of great games coming out THIS year.

if microsoft takes the first step in dropping the price of the 360, and with the release of Halo3 coming in September, sony really needs to do something to generate real interest in the ps3 from people that are sitting on the sidelines waiting to buy a new gaming console. GTA4 is coming out, but that is going to be available on the 360 as well, so sony needs to do something THIS YEAR to get more people to buy the system. the problem with waiting for your AAA software lineups to arrive in 2008 is that your competitor is going to be releasing several AAA titles in 2007, and if the 360 gets a price drop, it will only draw more casual gamers away from the ps3.