Video Games 09 Jul 2007 08:37 am

Sony Cuts Playstation 3 Price

by Sean Hackbarth

Playstation 3

Sony really, really needs to crank up Playstation 3 sales. Video games are a huge money-maker to begin with. Plus, the company needs to get more Blu-ray high-def video players on the market to win the war over HD-DVD. Nintendo’s Wii has been outselling Playstation 3 almost two-to-one. Sony decided to spur demand with a price cut:

Sony Corp. slashed the price of its current PlayStation 3 by $100, or 16.7 percent, and introduced a high-capacity model in an effort to spur sales of the struggling video game console.

Starting Monday, the current 60 gigabyte model will cost $499, down from $599.

The Japanese electronics maker also said it is introducing a new version of the PlayStation 3 with a bigger hard drive for storing downloaded content such as video games and high-definition movies.

The new PS3 increases the system’s storage capacity to 80 gigabytes from 60 gigabytes and also includes a retail copy of the online racing title “MotorStorm,” a company spokesman said. It will be priced at $599.

Sony’s production cycle probably isn’t at that point where it’s making money off the consoles. This price cut will cut into the company’s margins. But not extending its video game dominance for another generation is something the company doesn’t want to ignore.

Sony Cuts PS3 Price by 16.7 Percent”

3 Responses to “Sony Cuts Playstation 3 Price”

  1. on 09 Jul 2007 at 8:47 am 1.Pete Fanning said …

    This won’t help them ONE BIT….

    Not until you see them dip into the mid $300 range will consumers even look at the PS3…..

    Most are happy with the Nintendo Wii, some with the Xbox altho the Red Circle of Death has caused some to jump ship to the Wii….

    Sony gambled on a high price point and LOST….sorry to say…

  2. on 09 Jul 2007 at 4:01 pm 2.steveegg said …

    One additional consideration – Sony is still heavily-supporting the PS2. That is something that Nintendo and Microsoft did not do when they brought out the Wii and XBox 360 respectively; new games for their previous systems stopped being produced almost immediately after launch.

    One more example of Sony stepping on its crank; cancelling the 20 GB version back in April, which would have been in the wheelhouse at $400 with the $100 price cut.

  3. on 09 Jul 2007 at 4:35 pm 3.Chris said …

    Remember the Beta-Max. Another superior product priced to high.

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