Is Sony Readying PS 3 Price Cut? - InformationWeek

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Is Sony Readying PS 3 Price Cut?

Amazon cut prices for the game console, and Sony reportedly ramped up component orders. Can a price cut be far behind?

Speculation is building that Sony is getting ready to cut prices of the PlayStation 3, following Amazon price cuts and a report that Sony has ordered sufficient components to build 1 million PS3s in the current quarter.

Analysts have expected the price cut for quite awhile, particularly since the price of making the PS3 has fallen considerably. The cost of manufacturing has fallen roughly 70% since the PS3's release, Sony chief executive and executive VP, told analysts during a conference call last to release fiscal first quarter financials.

Amazon lopped $50 off a bundle comprising the PS3 and the video-game Uncharted: Drake's Fortune Pack. The retailer dropped the price to $450 from $500.

In addition, DigiTimes reported that Taiwanese manufacturers of the PS3 have placed enough orders for key components to make 1 million units of the console in the third quarter. That would be twice the number manufactured in the second quarter.

The PS3 with 80 GB of storage currently sells for $400 in the United States, which is $100 more than Microsoft's 60 GB Xbox 360 and $150 more than the Nintendo Wii.

Sony needs to sell more PS3s. Sales in the fiscal first quarter ended June 30 fell to 1.1 million units from 1.6 million units a year ago. The drop contributed to Sony reporting its second consecutive quarterly loss, due to continued weakness in electronic sales. Sony blamed the PS3 sales slump on the lack of a hot, new game to drive sales.

Sony cut the price of the PS3 before. The console debuted in November 2006 at a starting price of $500. In March, Sony cut the price of the older PS2 23% to $100, sparking speculation then that a PS3 price cut was in the works.

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