updated 11:00 am EST, Wed February 25, 2009
PS3 Price Cut Imminent
A research note from Janco Partners analyst Mike Hickey today claims that Sony is likely on the verge of a price drop for the PlayStation 3. The researcher cites channel investigations that hint at a cut within the "next couple of days," though how deep the cuts would run and whether they would apply to both 80GB and 160GB models isn't known. Sony introduced these models just last year but hasn't lowered prices since the $399, 40GB PS3 shipped in 2007.
Regardless of Sony's intentions, Hickey believes that a price drop is likely to arrive in April and shouldn't appear later than June. At least a $100 cut is necessary to jumpstart PS3 sales, he says, and without one the PS3 is likely to continue suffering through poor sales and may alienate developers hoping to sell games for more popular systems.
Sony has lately maintained that the PS3 must first be profitable before price cuts can take place, but the company has seen a rapid decline in sales that saw PS3 numbers drop 25 percent year-over-year where the less expensive Microsoft Xbox 360 and Nintendo Wii have both grown. Much of Sony's cost stems from the still-high pricing for Blu-ray drives.