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PS3 price cut announcement "in the next couple of days" - Janco

Wed 25 Feb 2009 9:03am GMT / 4:03am EST / 1:03am PST
Hardware

Analyst speculates official price cut to come as early as April

Sony Computer Entertainment

Sony Computer Entertainment is a Japanese videogame company specialising in a variety of areas in the...

playstation.com

The PlayStation 3 could be about to receive a price cut, with Sony due to make an announcement imminently.

That's according to Janco Partners' Mike Hickey, who has said in his latest note to investors that Sony needs to cut USD 100 off the asking price of the luxury console.

"Recent channel checks indicate increased speculation for a PS3 price cut announcement from Sony in the next couple of days," wrote Hickey.

"We think the company needs to reduce the current price by USD 100 to effectively restart unit velocity at retail. We believe the market is expecting a PS3 price cut in April or by June at the latest," he added.

Hickey said that without a price cut, the console could stagnate on shelves, prompting publishers to move resources away from PlayStation 3 development.

"If Sony does not cut the price of their console, we expect the continuation of languishing PS3 hardware sales and the potential for publishers to accelerate their reallocation of resources away from the PS3 console."

He also said that there is talk of a PlayStation 3 unit without the Blu-ray drive, although such a console would not be compatible with the PS3 software already on the market.

"We are also hearing continued speculation that Sony is working on a non-Blu-ray PS3 console, which could enable them to make the aforementioned hardware price reduction."

12 Comments

Jim Webb
Executive Editor/Community Director

2,246 2,233 1.0
Talking about a non-Blu-ray enabled PS3 really undermines his entire investor note.

His speculation on an upcoming $100.00 price reduction announcement was all fine and dandy then he jumps off the high dive in into an empty pool with the removed Blu-ray bit.

Posted:5 years ago

#1
ha. Completely agree.

Sometimes analysts simply lose their common sense.

Posted:5 years ago

#2
What would we be the point in a PS3 without a Blu-ray drive...Unless you really want to play PS1 and PSN games?

I heard to reduce costs they are making a PS3 that is self-assembly.

Posted:5 years ago

#3

Phil Elliott
Project Leader, Collective; Head of Community (Live Team)

163 29 0.2
"I heard to reduce costs they are making a PS3 that is self-assembly."

Partnership with LEGO, perhaps? :-)

Posted:5 years ago

#4

Jim Webb
Executive Editor/Community Director

2,246 2,233 1.0
Why stop at Blu-ray? Let's just remove the HDD completely, do away with Wi-Fi, replace the CellBE with an Intel Atom and call it a day.

Posted:5 years ago

#5

Jim Webb
Executive Editor/Community Director

2,246 2,233 1.0
Fran, that's too high end. Let's remove the slide switches, the solar cells and the 'equals' key. Perfect.

Posted:5 years ago

#7
A PS3 without Blu-ray is not so mad. I can imagine downloads from PSN over a fast internet connection would be a good source of content. Splitting games into bite sized chunks such as episodes or levels would also make bigger games suitable for download.

It would also be ok for streaming or downloading movies or TV.

Posted:5 years ago

#8

Jim Webb
Executive Editor/Community Director

2,246 2,233 1.0
Simon, consider the market fragmentation problems. All those PS3Lite owners would have no access to packaged PS3 titles and downloading via PSN would be cumbersome for all but a small slice who have fast enough connections and no bandwidth caps.

Then you have the publisher issue that has to consider the new fragmentation. What percentage of the market are PS3 and PS3Lite? How would a cheap PS3Lite model affect sales of the base PS3 and how would that affect package retail sales?

On the consumer side you'd have a box with a retail price likely only $100.00 less than the current 40GB model that largely only offers PSN games and no physical movie media playback.

Posted:5 years ago

#9
this guy deserves to lose all credibility. how does someone state something so incredibly wrong and also consider himself a part of 'the business'?

it's like he was talking just to hear himself talk

Posted:5 years ago

#10
Is anyone else tired of hearing "Industry analysts" talk about how they predict a price drop in the future of the PS3 and that it would greatly increase sale volume of the console. I swear we hear the same thing every month and the idea that this information is insightful or worth making a press release about is just ridiculous.

As for a PS3 without Blu Ray? I dont see that happening, Sony is far too invested into blu ray to even suggest making a move on something that would appear to be their loss of faith in the format. The console itself would not appeal to the average consumer because they wouldn't even be able to take a game home to play with when they buy it. Not sure how they would even market that.

The average consumer would view it as a PS3 without the ability to play games and unable to play blu ray movies which leaves them with no real reason to buy the system.

Of all people you would think an "industry analyst" could sort out the absurd rumors from the possible ones. Unless the intention was to say something absurd to get front page.

Posted:5 years ago

#11

Jim Webb
Executive Editor/Community Director

2,246 2,233 1.0
John, I agree. It seems that analysts for the video game industry have the lowest knowledge barrier of entry for any analysts position.

When they are right, it was blatantly obvious. And when they are wrong, and they most often are, they have virtually no accountability and continue to rack in a nice 6 figure paycheck for information 15 year olds on a forum can give you for free.

Posted:5 years ago

#12

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