PS3 Price Cuts Coming: Sony CEO

When Howard Stringer and logic collide...

You know the PlayStation 3 costs too much, I know the PlayStation 3 costs too much, but now – finally – Sony CEO Howard Stringer has admitted the PlayStation 3 costs too much.

Speaking towards the end of last week with the Financial Times Stringer admitted, “Nintendo Wii has been a successful enterprise, and a very good business model, compared with ours . . . because it’s cheaper (*cough* – Gordon). That (price cuts) is what we are studying at the moment. That’s what we are trying to refine.”

Despite this startlingly public admission Stringer declined to reveal how much Sony was considering reducing the price of the PS3, but the FT says reduced production costs have some analysts predicting $100 will be lopped off during the run up to Christmas. Should this come to fruition the £415 console would retail closer to £365 at a time when Stringer claims “you will begin to see break-out games”. Better late than never…

Regardless of what cuts Sony makes, Stringer’s stance is vastly different to that of Ken Kutaragi – dubbed the ‘Father of the PlayStation’ – who in April said the console was too cheap. Kutaragi however has since departed, PS3 shipment targets have not been met and Sony’s games division is expected to incur $488m losses in the current financial year.

Sales of Nintendo’s Wii have also embarrassed Sony with latest figures suggesting it is outselling the PS3 by a ratio of more than five to one while Microsoft’s Xbox 360 is still capitalising on its one year head start and numerous exclusive licensing deals.

Still, Stringer at last appears to have conceded something must be done to halt the decline and hats’ off to him. After all the first step is always admitting you have a problem…


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