With Microsoft’s Xbox running into hardware failures, its Xbox 360 Elite lurking on the horizon and Nintendo’s Wii continuing its strong performance, the time is ripe for Sony to hit back with a price cut.The Playstation 3 is the most expensive console in the gaming market, and unsurprisingly Nintendo’s Wii – the most affordable console - is leading sales figures in many countries. Sony is however downplaying rumors of any PS3 price cuts despite its console suffering in sales when compared to Nintendo’s Wii.Current figures indicate that Nintendo’s Wii is outselling the PS3 by six to one in Japan and by two to one in the United Kingdom. Despite these statistics Sony seems reluctant to drop prices.According to Reuters Sony President Ryoji Chubachi said "At present we have no plans," when asked about PS3 price cuts.
Despite Chubachi’s words rumors are continuing that Sony will slash the price of its Playstation 3 console to $ 499-00, a drop of $ 100-00. According to some Internet sourced they are in possession of a Circuit City flyer showing that the PlayStation 3 will retail for $499.99 after a $100 price cut.This will certainly make the gaming system far more attractive to wider audience, something that Sony must consider in their quest to gain a larger market share. The price of Sony’s PS3 has been a bone of contention among the gaming community since its launch, and with the Wii retailing for around half the price of a PS3 it is hardly surprising that Nintendo sales are continuing to dominate.
Time is right
Microsoft recently announced that they will extend their Xbox 360 hardware failure cover to a three year warranty, giving a strong indication that all is not well with its console. This may make some prospective Xbox buyers jittery, encouraging them to look at other options.
Microsoft further plans to launch its Xbox 360 Elite in Japan in October at a retail price for under $ 400-00. It is sure to attract the attention of the high end gaming market, traditionally Sony’s playground.July is hence seen by many gaming experts to be an opportune moment for Sony to announce a PS3 price cut, sending a clear message to the market that they serious about regaining the top spot they held with their popular PS3 console.While Sony has invested heavily in bleeding edge technology for its Playstation 3 console like its Blu-Ray disc player, the market is still price sensitive and these advantages are often overlooked.
It will not be easy for Sony to drop their Playstation price below certain margins they decided on, but it may just be the only way it can creep back into gaming enthusiast’s homes.