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Analyst Predicts PS3 Price Cut

Following comments from Sony’s Howard Stringer indicating concern that the PS3’s high price could cause it to underperform at market, an analyst at Goldman Sachs has suggested that the console’s price will be cut by $100 this October in the U.S.
Following comments from Sony chairman and CEO Sir Howard Stringer, indicating concern that the PlayStation 3’s high price could cause it to underperform at market, an analyst at Goldman Sachs has suggested that the console’s price will be cut this October in the U.S. The news has already been widely reported in the business media, with analyst Yuji Fujimori indicating that he expects the price to drop by as much as $100, ahead of the run-up to the all important Christmas 2007 gift buying season. Fujimori suggested that the price cut would not adversely affect the PlayStation 3’s long term profitability, in part due to the simplifying of the console’s internal components and manufacturing process (as most visibly seen by the switch from hardware to software emulation for the PlayStation 2). Sony originally planned to sell the 20GB hard drive version of the PlayStation 3 for ¥59,800 ($515) in Japan, but reduced the price to ¥49,980 ($430) just before launch. Despite criticism from analysts, retailers and customers, there has never been any suggestion of a price cut in the West, with Ken Kutaragi famously stating that retailers and publishers in the U.S. were happy at "such a great function for that price" – apparently suggesting that only Japan was dissatisfied with the console's cost.

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