A senior Japanese video game executive is telling Reuters that Sony’s (SNE) recent $100 price cut on the PS3 game platform will not be the last. Perhaps the consumer electronics giant will end up giving the product for free and hope to make up the difference on volume.
"The number of PS2 users is still growing and a shift to the PS3 is on the back burner," Capcom Chief Financial Officer Kazuhiko Abe told Reuters. "But, the price has been cut once and it is likely to be cut again towards the end of the year. I expect the (PS3’s) installed base to grow gradually," he added.
With the retail unit price down to $499, analysts speculate on whether Sony even makes money on the product. Another price cut may drive up demand, but it could cause the company to miss its earnings forecasts for its game unit.
To some extent, it is a no win situation.
Douglas A. McIntyre
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