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

Analyst speculates official price cut to come as early as April

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."

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Latest comments (11)

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.7 years ago
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.
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ha. Completely agree.

Sometimes analysts simply lose their common sense.
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Glenn White , Qube Media7 years ago
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.
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Phil Elliott Project Lead, Collective; Head of Community (London), Square Enix7 years ago
"I heard to reduce costs they are making a PS3 that is self-assembly."

Partnership with LEGO, perhaps? :-)
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.7 years ago
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.
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.7 years ago
Fran, that's too high end. Let's remove the slide switches, the solar cells and the 'equals' key. Perfect.
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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.
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.7 years ago
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.
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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
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.7 years ago
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.
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