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Analysts continue to call for PS3 price cut

by Bill Hess on April 14, 2012


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.

 

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  • Cool dude

    A price cut? Are you kidding me? Kaz’s priority is PlayStation yes.. however his priority FOR THE WHOLE COMPANY is to make profit by the next fiscal year.

    Theres no way the Ps3 would price cut two years in a row. They’ve never done that before.

  • IHATEHIPSTERS

    Yep the PlayStation came out a year later and was MORE expensive? Nice move putting in blue ray Sony how did that work put for ya? Whaaa 6 years down the track and your losing 6 billion?! Well at least you won the format war right? O wait wrong, because the future of movies and TV is streaming over the internet, and Ms is already beating you at that.

  • Mike

    Ha, no kidding, only a handful of games need the space of blu ray and no one is buying discs anymore. Great format choice, they screwed over one of their main divisions to advance tv and disc sales.

    50% lost in market share this generation, ridiculous.

  • njb

    Really. U think everyone downloads games. Pc yh but not console. And to be honest im glad they did not rush the ps3.

    Unless everyone can get 5mb fibre optic connection then downloading and streaming is pointless. Most of the UK is still copper wire. It will take a few years to upgrade the country. And most ppl prefer a physical product.

    • IHATEHIPSTERS

      I never said people download games? You fckin retarted or what?

    • hoppsy

      don’t think he was talking to you….hmmm who’s retarded?

  • dave

    I love when people try to groan about the abandonment of physical media.

    Why should the rest of the world revolve around a wasteful industry like printint physical copies of games, when a perfectly good replacement for the platform is here? Look up the statistics for this.. amount of homes with a next-gen console.. then look for the amount of those homes, that have high speed internet. The amount of people without high speed are very much in the minority. In business terms, they do not matter at all because they’re followers who never complain loudly enough. Any corporation knows which customers they can push around.. and the typical customer without high speed internet is just that.

    Why don’t you just admit that you don’t have high speed internet because you’ve spent too much money on your stupid phone. I guarantee that anyone who groans about the price or availability of internet is either some moron with an iphone or someone who hasn’t asked the right provider. Quit complaining and start talking to people to get yourself some high speed.

    On two different occasions, I have talked service providers in to dragging fiber down country roads, because the availability didn’t quite make it. All you have to do is complain and they make it available. They want your money – but they have to know that it’s there, first.

  • Frank

    @IHatehipsters

    So how else is it possible to stream movies from Netflix? Your ass? What he’s trying to say is that Internet speeds globally aren’t there yet for streaming HD content, so therefor the only alternative is buying Blu-Ray. Wow, I’ve seen fanboys but you’re just another breed! I can tell you’re still bitter that since ’06 your parents have promised you a PS3, well, before the price was released.

  • Frank

    @Dave
    You’re really naive. Installing fiber optics isn’t that simple, that’s why it’s taking so long. Plus SCREW DIGITAL! It doesn’t belong to you if it is. And good luck selling a game when you’re tired of it.

  • abc

    @Frank

    its no use arguing with a kid.

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