Playstation 3 Price Cut Expected This August?

June 29th, 2009 | Filed under: Stock Recommendations, , ,

Regardless of who you ask, it is pretty clear that the Sony (SNE) Playstation 3 is lagging among its competitors. Considering what I think about Sony, obviously that doesn’t surprise me.

It all started when Microsoft (MSFT) beat Sony to the punch with the Xbox 360. With the Playstation 3 coming out nearly a year later and with a decade of experience, this was clearing Sony’s battle to dominate. The problem was that they came up monumentally short…

NPD May 2009 Console Sales Chart

From the very beginning, it seemed like Sony was more interested in creating a power machine; however, did they venture too far into the future? While the price point was relatively high compared to other gaming consoles, some of the perks included a Blu-ray player and motion-sensor controllers.

When the PS3 first launched back in 2005 Blu-ray was just an idea in most consumers head and flat screens weren’t the norm. With most potential consumers not being able to experience everything the PS3 had to offer, why would they fork over the cash? As for the motion-sensor controllers, well we all know about the Nintendo Wii.

As an avid video-gamer myself, most consumers wait until a big title comes out. Why buy a system if there is nothing to play on it?

Nearly 4 years later it looks like we are still waiting for that title? While the 360 has titles like Halo, what does the Playstation 3 have? Their most popular games can also be bought for the other consoles.

I’m not going to even get into the online experience. Microsoft is by far light years ahead of Sony. Although you still have to pay about $60 a year (price of one game) for an Xbox Live Gold membership, it is well worth the price.

Ultimately, the conversation comes down to the numbers. Are you selling systems? If the answer is no? Then what can you do about it? While many are pulling for Sony to pull in some good exclusive game titles, the problem is that no game makers are willing to do it. Why take the risk of creating a game for a system nobody wants to buy?

CEO of Activision Blizzard (ATVI) was recently quoted saying, “When we look at 2010 and 2011 we might want to consider if we support the console.” Might I remind you that these are the people behind both Call of Duty and Guitar Hero…

At its current state the future for the PS3 does not look that bright either. Average prices are still higher than both the Xbox 360 and Wii. While HD televisions are becoming the norm, sales numbers don’t seem to be rising, and it does not look like they have any big exclusive game sellers on the horizon.

It seems like the easiest thing to do would be to slash the prices of the PS3. Rumors are running rampant all over predicting the PS3 could see lower prices sometime by August.

When asked about any potential price cuts for the PS3, CEO of Sony Entertainment stated that their mission is to improve the value for the consumer. Well, if you can’t do it through games or hardware, then do it through price, right?


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