Sony is in the midst of retooling their business strategy across a wide array of their products, but the marketplace will not sit idly by while the company gets their affairs in order. Colin Sebastian of RW Baird believes that for Sony to keep up with Microsoft, it needs to slash prices of the PlayStation 3 to remain competitive.
As Michael Pachter had predicted earlier this month, Sebastian explains to Industry Gamers why Sony is in a tough position for the remainder of the current generation.
“Sony is in a tough position. In many areas of their business, they are losing share, such as TVs and computers, and their challenges are well known in gaming. The need to invest in a significant upgrade cycle for Orbis/PS4 comes at a awkward time for Sony, but to remain competitive longer term in games, we think there needs to be another price reduction on the PS3, and then be first to market with a next generation console,” said Sebastian in a recent interview.
Many analysts believe that a combination of bad choices at the beginning of this generation, led to Sony’s competitive decline in North America this generation. The last console to launch, Sony gave Microsoft a one year head start. The PlayStation 3 was also the most expensive console at launch after Sony decided to include many things standard that other consoles didn’t have.
It is rumored that the next generation console from Microsoft will arrive in late 2013. If Sony is to get a head start on the competition this time around, they’ll have to act fast.