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Sony PlayStation 3 video game console is over expensive for the current condition of the global economy and game development, many gamers and market observers have already claimed. Apparently, more industry executive are worried about the price of the PS3 and beg Sony to decrease the cost of the console.

“Sony obviously still has a ways to go with their pricing. Electronic Arts is committed to the PS3 and expects a cut eventually. […]You can’t ignore the guy who has half the market,” said Peter Moore, the head of Electronic Arts, in an interview with Bloomberg news-agency.

This is not the first time when game developers and publishers ask Sony to cut down the price of the PlayStation 3, the worst selling new-generation game console. Nintendo Wii, the best selling console in the current breed, costs $249 and it has outsold both Microsoft Xbox 360 and Sony PlayStation 3 combined. Obviously, game publishers cannot ignore this fact and will eventually shift their priorities to Wii and Xbox 360 from the PS3, despite of the success of Sony’s PlayStation 2.

In 2008, Activision Blizzard generated 32% of its console revenue from Wii titles and 19% from PlayStation 3 titles.

“Anytime a console manufacturer reduces the price, software publishers benefit,” Yves Guillemot, chief executive officer of Ubisoft Entertainment in Europe said.

However, even now game publishers are interested in PlayStation 3 since games developed for the PS3 and X360 can, with some exceptions, eventually be ported to personal computer platform (PC).

“Not everyone predicts a big shift in spending, because PS3 and Xbox 360 share many titles and costs. Game companies who fail to commit enough money to PS3 risk losing business. You make very good money on PlayStation 3 if you develop a good game. You can very easily take that game to Xbox 360 or PC,” said Mark Rein, vice president of Epic Games Inc., the Cary, North Carolina-based maker of “Gears of War.

While it is obvious that with lower installed base there are fewer incentives for game publishers to create exclusive PS3 titles, Sony has no immediate plans to cut the PlayStation 3 price.

“Sony has no immediate plan to reduce prices, said Peter Dille. Everybody in the development community would love for the PS3 to be free, so they could just sell razor blades. Sony is concerned with profitability, as well as the installed base,” senior vice president of marketing for Sony Computer Entertainment America.

Tags: Sony, Playstation, Microsoft, Xbox, Nintendo, Wii


Comments currently: 1
Discussion started: 03/22/09 05:08:47 PM
Latest comment: 03/22/09 05:08:47 PM


I'm not sure that Sony can make this happen within their current conception of their product line. The problem is that the conceive Blu Ray as mandating certain levels of licencing fees, to the effect that a blu ray player will cost $250. People who are paying those licencing fees are going to go bonkers if Sony drop the PS3 price to $300, because then the PS3 become direct competition, with a lot of added value, to "mainstream" Blu Ray players. Until Sony revises its plan for Blu Ray, I don't see a PS3 price drop on the horizon.
0 0 [Posted by: philosofool  | Date: 03/22/09 05:08:47 PM]


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