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PS3 "does not need a price drop" says EEDAR

EEDAR's Jesse Divnich disagrees with others calling for a price drop

PS3 continues to be outsold by Xbox 360 on a monthly basis in the US according to NPD, and just today we spotted a price cut on the 160GB PS3 at GameStop (just $199). Some analysts believe Sony needs to drop price to remain competitive, but EEDAR's Jesse Divnich does not fall in that camp.

"I don't believe the PlayStation 3 needs a price drop at the moment," he told GamesIndustry International. "Sales have been consistent and in-line to what one would expect for a platform that continues to successfully grow its install base so late in a console cycle."

As for the GameStop price cut, a Sony spokesperson stressed to us that it's just a "temporary GameStop promotion" and wasn't Sony's initiative.

Should anything be read into this, however, such as GameStop trying to move PS3 hardware sitting on shelves? No, according to Divnich. "There could be many elements at play, but I highly doubt this is any indication of weakness for the PlayStation 3," he said.

Ultimately, it is likely that Sony and/or Microsoft will want to reduce the price of their hardware at some point this year to better compete with the Wii U launch by year's end. With the Wii U getting a full one-year jump on PS4 and Xbox Next, Microsoft and Sony will probably try to put pressure on Nintendo so as not to cede too much ground.

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Latest comments (6)

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.4 years ago
By far the most reasonable and intelligent analyst prediction I've heard all year.

Edited 1 times. Last edit by Jim Webb on 20th April 2012 11:26pm

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Rick Lopez Illustrator, Graphic Designer 4 years ago
Im ok with the current price of the PS3. For a game console 300$ is ok... however the VITA needs a drop, I in no way intend to purchase one at its current price. I think when selling a product its great to see sales grow or sell more than a rival, but i think the most important thing is to keep consistant and healthy sales figures, and that seems to be the case with a PS3. I love my PS3, very few things to complain about, all id wish for is a detachable hard drive I can move around so i dont have to drag my PS3 to my friends house to play. If anything a small price cut of 20$ would probably do alot of good.

Edited 2 times. Last edit by Rick Lopez on 23rd April 2012 4:51pm

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Graeme Quantrill Mobile App Developer 4 years ago
While it might not be a price drop that is required, Sony do need to do something to stop it being consistently outside each month. Price drop is the obvious fix and considering the market gets smaller every month, perhaps it is the right one.

What alternative do Sony have?
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Show all comments (6)
Kevin Patterson musician 4 years ago
How well is the PS3/360 going to sell once the Wii-u hits at the end of the year?
If I was Sony or MS, I would be planning on a price drop.
Unless the Wii-u has major shortages, like the Wii, I would think customers would look at the new big thing coming out first unless they need to replace their current console.
I wonder what impact Halo 4 will have on 360 sales this holiday as well.
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Bruce Everiss Marketing Consultant 4 years ago
The PS3 and 360 have been consistently overpriced throughout their lives. MS now are said to make $100 profit on each 360 which is not how this business model is supposed to work.
Consoles need to be priced to become a supermarket impulse purchase if they are to become mass market.
Sure the early adopters and the hard core gamers will pay inflated prices, but they don't constitute a big enough audience.

The console marketplace has declined steadily throughout this generation and the cost of using them has a lot to do with it. There is a lot of competition for people's discretionary spend.

Just now I can buy 2 Lumia smartphones for the price of one Vita. This doesn't make sense to most of the population because the Lumia is a massively more useful everyday device.
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Kevin Hoque Programmer, The Creative Assembly4 years ago
200 is still a lot of money for many families and individuals. A price cut would definitely spur sales. Considering that the machine was released in 2006 it's no surprise that Sony are seemingly making preparations for its successor. What does raise an eyebrow is that it is doing so whilst the original console is still a very expensive proposition for many people.

The playstation is not the peoples' console that it was in the 90's. This is a great shame for consumers and it shows on Sony's bottom line.
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