Expected PS3 Price cut wont improve sales

Originally Posted by Gamesindustry.biz of America analyst Michael L. Savner has warned that a PlayStation 3 price cut may not be enough to boost "stagnant sales" of the console. Savner also said that a sales shift away from PS3 and Xbox 360 and towards the Wii could be detrimental to third-party publishers. "Despite growing anticipation that a USD 100 price cut for the PS3 is imminent this summer or early fall, we do not believe such a move would meaningfully improve stagnant PS3 sales," said Savner, speaking to Business Week. "We are growing more concerned that a share shift away from Sony and Microsoft to Nintendo's Wii platform is incrementally negative of all third-party publishers." For Savner, a USD 50 price cut on the PS3 would be "meaningless" - and even a USD 100 drop would still leave consumers facing the cost of buying peripherals and games. Sony's console would continue to cost between 20 - 25 per cent more than Xbox 360, and there is still a possibility Microsoft could cut the price of its machine. These factors, combined with the issue of a lack of exclusive PS3 titles, have led Savner to conclude that Sony should introduce a price cut of USD 200 - but he said that such a significant reduction is unlikely to to happen in the near future. "While Sony could cut the price by USD 150-200, we view that as less likely given that it is already losing approximately USD 200 per console based on our estimates," he commented. "Bottom line, we don't expect Sony to make up meaningful ground against the Wii this year." Although publishers are currently riding on the success of Nintendo's home console, Savner is concerned that they will be trading wholesale profits on PS3 and Xbox 360 titles for the lower profits associated with Wii products. "Viewed at a macro level, the share shift currently taking place where the Wii, and even PS2, are the share takers, our concern is that if software sales also begin to skew along those lines that publishers will be trading higher wholesale revenue for lower wholesale revenue," he said. "This is coming at a time when publishers are continuing to increase R&D spending for the more expensive platforms."

Somehow I dont think the UK will be seeing a £50 price drop anytime soon.

If Sony do cut the price I expect it will be to £399. They still wont sell them though as its the wrong time of year.

If you dont own a PS3, what price would you bite at?

I remember a few retailers were putting them through at £399 a couple of weeks after launch... I've got a long wait as my days of spending over £300 on a console are long gone. More's the pity

I don't expect them to do any kind of official price vut but I do expect retailers to get a bit more generous Bundle's Wise so it appears cheaper than the £400 mark that alot of retailers have it at now.

I would pay £270 for it if I wanted it. It's just that damn Blu Ray player

theres a little shop near me that sells mobile phone crap, they sell the ps3 for £299 i reckon ill get mine from them.

Originally Posted by Tobes I would pay £270 for it if I wanted it. It's just that damn Blu Ray player

yep they are expensive..but thats why. if and if MS did include a HD DVD drive as standard then we would see similar asking prices, but they don't and prob won't as its been said that they don't want to back a product that may not succeed. if it doesn't then it will be blu-rays on the xbox 720!

But yep i paid £525 for the ps3, with 3 games, hdmi cable and click on BD. Genji was swapped in for Oblivion as part of blockbusters trade any ps3 game and get oblivion for £10, so i saved some cash there..Click i traded for £15..so in a way i saved something, but yep they are in most stores £399...which sounds better than £425

There aren't any games, as of now, to make the PS3 worth buying.