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Guillemot: Sony Needs to Drop PS3 Price In 2007

In an interview with financial website Bloomberg, Ubisoft president Yves Guillemot noted that despite consumer demand for the upcoming PlayStation 3 console, he believes ...
In an interview with financial website Bloomberg, Ubisoft president Yves Guillemot noted that despite consumer demand for the upcoming PlayStation 3 console, he believes that Sony will need to cut the price of the platform in 2007 if it hopes to compete with Microsoft and the Xbox 360. The company noted that it expects next-generation consoles to be huge sellers over then next couple of years, and that nearly 40 million consoles will be sold in the US alone during 2008. The PlayStation 3 will ship globally in November and offer two separate hardware SKUs, the high-end of which will cost $599, a price $200 above its nearest competitor, and twice that of the initial cost of the PlayStation 2. Guillemot mentioned in the interview that 2007 will be a key year in determining the winner of the next console race, and while early adopters will mean positive sales for the console's launch, its steep price could pose a potential problem in the months that follow. Despite this, Guillemot commented in Ubisoft's recent yearly results, that the coming fiscal year will be “a new year of transition” with the launch of the PlayStation 3 and the Wii. “We forecast a sales growth of between 5% and 10%, despite a global market which should decrease by 7%, thanks to the launch of 5 new high-potential brands,” commented the company president when the results were announced. The company plans to launch at least one PlayStation 3 title within that window with Assassins Creed - however, the game is also anticipated by many to be in development for the Xbox 360 as well. Other planned releases for the company include the Wii-exclusive Red Steel, as well as the multi-platform Tom Clancy's Splinter Cell Double Agent. Elsewhere in the Bloomberg interview, Guillemot added that while Ubisoft is not planning to acquire struggling competitor and only other remaining major French-headquartered Infogrames, the company will likely add to its portfolio by acquiring additional franchises and studios in the near future.

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