PS3 is harder to cost reduce, says SCEA boss

SCEA boss Jack Tretton has warned that it will be hard to cut the cost of PS3 as the machine is so expensive to make - but according to reports, some Japanese retailers have already slashed 20 per cent off the RRP.

When asked in an interview with US magazine Game Informer whether PS3 price cuts be "as soon or as drastic" as they were for PS2 Tretton replied, "No... There's a heck of a lot more under the hood and it costs us more money to make it."

But although he conceded it will be "a lot more difficult to cost reduce" PS3, Tretton said that consumers will still be willing to pay the asking price.

"I think the consumers that get their hands on a PlayStation 3 clearly see the value and not only want to buy one for $599, in some instances they're willing to pay ridiculous prices to buy one on eBay," he concluded.

However, reports suggest that demand for the hardware is already slowing in Japan. According to Media Create figures the PS3 suffered its worst sales week so far earlier this month, and now there are claims that some retailers are drastically cutting the price of PlayStation 3.

As reported on Akibablog.net and partially translated by Kotaku, some shops are said to be reducing the price for the 20GB model from YEN 49,980 (EUR 315) to YEN 39,980 (EUR 253) - a drop of 20 per cent.

But market watchers PS3 wasn't the only console to experience a post-Christmas sales slump - Media Create's figures revealed that the numbers for Nintendo Wii and Xbox 360 were also down during the same period.