Bank of America analyst: PS3 price drop won't cut it |
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With sales that placed Sony last in the next-gen console race, it's almost inevitable that they cut the PS3's price in the hopes that it would appeal to more people. Rumors say that the price will drop by $ 100, but analyst Mike Savner from Bank of America believes this may not be enough.
Taking off US$ 100 from PS3's price tag still leaves it more expensive than the Xbox 360 and there's a possibility that Microsoft would cut prices too. Savner advised that Sony can take US$ 150 - 200 off, but it's not very likely since it would add to the hurt because Sony is losing about $ 200 per PS3 unit sold.
Even with price reductions, the PS3 will still have a hard time catching up in the console wars says Savner. "An important driver of Sony hardware last cycle was exclusive games, such as Grand Theft Auto," he said, and the loss of exclusive games from third-party developers may greatly narrow the console's sales.
On the other hand, the Wii taking more market share from PS3 and Xbox 360 could actually be a bad thing for publishers. Companies are starting to spend more and more money on research and development, but focusing on the Wii would give back relatively lower wholesale revenue. "While certain 3rd party publishers like Ubisoft, EA and Activision have shown some success on the Wii, Nintendo remains the dominant publisher on its platform."
With a life expectancy of 10 years, it may be too early to judge how PS3 will fare in the future. There are still highly anticipated upcoming titles; some are said to "murder" the Wii, while some are from big franchises like Final Fantasy, Metal Gear Solid, and Devil May Cry. Savner doesn't expect Sony to gain meaningful ground this year, but only time will tell.
Via Game Daily Biz
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Comments [refresh]
goes for a shattering market takeover rendering the XBox and Playstation insignificant...
it's back to PC gaming for me.
i can't see myself sitting in my living room playing games on that thing like the way i did with my PS2 and what i'm doing now with my PS3.
personally, i think the entire gaming industry will be on the losing end... it's a huge backtrack from what seemed like an industry that is moving swiftly forward.
I just want to know one thing: when this is going to happen(the price cut).
Its so stupid to talk about a price cut when you dont say when this is going to happen...of course the price will be "cutted down"...eventually...I can confirm that the price of the PS3 will be lower in the next 5 years...duh
Hahah PS3 life expectancy of ten years. So you are tellin me that PS4 wont come out until 2016? I highly doubt that. I don't see sony making another playstation after this one. They already ruined their huge brand loyalty with PS3, and lost alot of good exclusives.
Even if they drop the price to match the 360 at 399, alot of people wouldn't buy because they don't have enough good exclusive titles.
I love it when people say ps3 lost exclusives like GTA. When the ^$@ was GTA exclusive? timed exclusive sure but its not worth noting. DMC is one worth noting though. Either way its going to be good. 360 lost some exclusives too. so its not like sony is the only one losing exclusives. making games is very expensive now so 3rd party exclusives will be a rarity. I say sony, pump out the good games and people will buy your console. no point in making it cheaper when the current library of games is lacking (exclusive wise)
It hasn't even been a year and people talking about price cuts. Sony put this one in for the long haul and as time passes, we will see price cuts but it is still way to early for that. As the games come, people will see what it's all about and buy more and console component manufacturing costs will begin to decline. Also the PS3 is developed to for the future in mind so we will also see better software as time goes on which will prompt people to buy also. But you guys already know that, right?
You don't know what you are talking about. It is still early in this game my friend and look at exclusives past on Playstation hardware. Don't even talk unless you have something intelligent to say.
wannabe analyst should just shut the f*ck up and stop predicting the future
it's not like sony just started their f*cking business last year
they've been in the gaming business since the SNES (sony made parts for the SNES)
sony KNOWS better... it's like "I'm an analysts, you should do what I tell you"... those analysts are starting to piss me off seriously
(ahh that felt good :)... would be nice if i could it to them directly)
I agree that it is naive to think Sony is really going to hold off for ten years. Sony will release if Microsoft or Nintendo release newer consoles. That's just how these things kind of swing by, cycles. I don't think the PS3, though powerful, is that powerful enough to stand around for that long of a life span.
What I cannot agree with you on is the simple retarded statement that people wouldn't buy it if it dropped to 399. I absolutely hate Sony's actions with the PS3, and refuse to pay the 600 price point, but if it was 399, I would be on that system in an instance. You my friend, are cutting it too short.
Once again... another moron trying to predict the future... I do not see Sony doing a price cut until next year. Right now they are loosing more than $100 per system sold, so if they do a price drop by $100 they will be loosing over $200 now. The games are coming so expect the systems sales to grow.
...just to see Sony backrupt!
Don't you see that they're making profit with it? They would be deep in the red numbers, if they wouldn't make money with it!
The stupidness of the Sony fanatics is soooo priceless ^^
The life cycle of a product doesn't end when a new product is released....at least the way Sony does it. They're saying that new material will still come out in the next 10 years - notice there are still lots of PS2 games coming out after the PS3 was released? Basically they (as a company) are saying they'll support the PS3 for 10 years, so consumers know that there won't be something replacing it 4 years from now.
Gord
I fu-cking hate the people that complain about the ps3's price. Just STFU! If you can't even afford the ps3, how the hell are you going to afford ps3 games? All of you thank can't afford it su-ck sh-it! Just because you don't have a nice income doesn't mean you should cry and sook over the god dam price. FFS! you people are so fu-cking annoying...
"wah wah, iI wan't a PS3 but it's to expensive, but if it drops $100 I might buy it"
then you use that $100 you saved on the PS3 to buy a game. then you will start complaining how $ games are. YOU ARE JUST A TIGHTASS AND MAKE EXCUSES BECAUSE YOU CAN'T ACCEPT YOU ARE FU-CKING CHEAP!
are you an idiot? sony IS losing a LOT of money with PS3. They take a hit for each one sold in the beginning so that later, when parts get cheaper, the games and hardware will more than make up for the money they lost earlier. the 'stupidness' of YOU is soooooo priceless
Wowwwww mate cool it down...
I've worked my ass off to to afford the ps3. I always kept in mind that the console was expensive but that did not stop me, I thought well.. I will pay £361GBP (Airport Duty Free!!!!) to get one and it will last for 10 years thats all. If I wanted to save money and be cheap as you say then I would buy a 360 but I did not chose to be worried every single day because the 360 might get crazy and go red evil light on me or freeze all the time!!! Besides now that the ps3 is out hardware-wise the 360's lifespan has been greatly diminished..which means MS will develop a new xbox in a couple years and drop support on the 360 like with the xbox and then I will say why the F[]ck I havent bought the ps3 back then!
That's true GoryLacey.
But do you really think Sony are going to continue to developing for the PS2 next year? Only third parties are going to support the PS2 platform in 2008 as Sony puts all it's focus into the PS3.
If Sony can't build the same kind of install base with the PS3 as it did with the PS2 it's going to receive less support after it's predecessor arrives. It will shorten it's life span because the demand isn't there to get a good return on investment.
Im in UK (sucks) and hardly enough demos!!!!
Where the ***** are the demos USA have???
The Bank of Mexico analyst needs to shut up, this guy needs to stick with what they are good at. Screwing the american people not telling anyone what he thinks of the PS3.
But it might still rise PS3 sales, add this to some of the games and maybe PS3 can have a decent holiday. Of course XBOX 360 is still gonna outsell it. But right now it should just be about survival for PS3, 82k a month is dying like numbers.
To early for a price drop we don't have even a year with ps3, if they drop the price that would be very ***** up for me..sony if you doit I want my $100 dollars back!!!!
"it's a huge backtrack from what seemed like an industry that is moving swiftly forward."
kid WTF? Last gen gaming was so *****ty, days of N64 were mint. but then all that i saw was graphics getting better and games staying the same. Thats why iv always liked Nintendo, because they make new fresh games.
dont get me wrong, i like to play the old way too, but atleast if there is one console with FUN controls, then ill be fine.