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Will Sony (SNE) Cut PS3 Price Again?

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By Douglas A. McIntyre Published
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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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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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