Submitted by Yi-Wyn Yen01.14.2009
Thunderdome
Loading...
News149027Salesforce's
Categories
This prediction is closed and has been judged.
Judgment made on April 1, 2009: Sony gave the PS2 a price cut, but the price for the PlayStation 3 did not get a price cut. The community got this prediction right. -- The Industry Standard
Sony's PlayStation 3 is lagging behind Nintendo's Wii and Microsoft's Xbox 360. Michael Pachter, a top gaming analyst with Wedbush Morgan Securities expects Sony to reduce the price of the entry-level PS3 from $399 to $299 by April to better compete with the other two game consoles. The Wii retails for $250 and the Xbox 360's entry-level console, the Arcade, sells for $199.
Prediction: Sony will announce that it reduce the PlayStation 3 80GB model to $299 or less by April 1.
Image: BigBlue/Flickr
Price History
Prediction Statistics
| Betting Closes: | Mar 31 2009 | Current Consensus: | 6.01% | Total Bets: | 30 |
| Today's Change: | -3.52% | ||||
| Life Time High: | 67.92% | ||||
| Life Time Low: | 3.23% |
Comments
I think Sony has found itself between a rock and a hard place. I read a couple of weeks ago that Sony had reduced the cost of new Playstation 3's by 35%. They re-engineered the guts of the high-powered console in remarkable ways. However, they were still losing somewhere in the ballpark of $50 per unit, or somewhere near that figure.
Seeing them take another $100 price cut (which I would welcome as a consumer) to avoid the fate of the 3DO seems necessary, but almost impossible. After reporting their first 1.1B loss this week to the world, slashing prices (necessary to compete and increase market share) will be hard for them to do, I'm sure.
Hard but necessary. Consoles are a lost leader item. Games is where the bulk of the revenue comes from. Sony cannot afford to lose its market share to Microsoft. The only outstanding question is ... "WHEN?"
Nintendo has figured out a way to drive sales off the Wii. It makes a $50 profit off each console sold.
True but look at the components costs that make up the PS3 or Xbox360 consoles. Wii graphics component, no hard drives and "regular" optical drive makes it relatively cheaper to make.
I have no sympathy for Sony. They have not been paying attention to the consumer for years. I’m not just talking consoles either. Sony makes some great products, But now so do a lot of other companies. Their products are overpriced and always have been. It used to be if you wanted a really good TV you had to spend the Sony premium, but not anymore. In all there arrogance they think they can just keep plugging away demanding their high prices and we will come running to them. That’s not the case anymore. Either you change with the times or you die. RIP Sony I won’t be at your funeral. I will be watching TV on my new LG LCD.
@Yi-Wyn, I had submitted (12/30/08) an almost identical suggestion (http://thestandard.com/predictions/suggestions/sony-announces-price-drop...) a couple of weeks prior to this being made a playable prediction. :(
Hi Yi-Wyn,
I recommend retitling the prediction. "Sony gives PS3 a $299 price cut by April?" sounds like the price will be cut by $299, not be reduced to the new price $299. How about "Sony cuts PS3 price to $399 by April?"
I see all sorts of data bout U.S. console market share, but has anyone seen console market share for the world? Is the PS3 doing comparatively better against Xbox on a global basis?
Dell is already selling 80GB PS3 at $339 right now.
Ouch. It costs Sony $448 just to build the PS3.
http://industry.bnet.com/technology/1000674/sony-whistles-in-console-dar...
I actually read that Sony has reduced the number of parts in the PS3 from about half of the original console, therefore lowering the production cost of the unit... Is that good news?
Price incentive from retailer is working for Sony PS3. Will Sony not learn from this?
According to N4G, April '09 PS3 price cut almost guaranteed
45nm Cell in PS3 in June. How soon would Sony reduce price on existing inventory of PS3 using 65nm Cell processor to clear out supply?
Announcement imminent?
Hmmm, I'll keep my eye out, but an analyst report is still kind of flimsy. I'd like to see more deets.
EA executive explains why the PS3 needs to slash prices to $299.
Pressure from publishers for Sony to cut PS3 prices
Latest rumor is price cut at GDC'09 (March 23-27)
No cuts affirmed by EB and Gamestop. What is more likely to happen is a two step price cut later in the year.
Unfavorable judgment can now be rendered.
Wow, quite a nosedive today.
Post new comment