But from reading Twitter and tech blogs, there is huge latent demand for the PS3 that has simply be waiting for the price drop. Saying you don't expect the PS3 to increase in sales, shows a complete lack of understanding on how basic cost/demand models work.
The president of Sony Computer Entertainment America said that PlayStation 3 video game system at $299 will become considerably more popular. In fact, Jack Tretton, the head of SCEA, believes that $299 is a “sweet spot” for the PS3. Meanwhile, analysts claim that the price-cut from $299 is not enough to make the PlayStation 3 winner in the present war between Sony, Microsoft and Nintendo.
“We are extremely pleased that we have been able to meet production efficiencies that have allowed us to pass those savings onto consumers. We really think that $299 is the sweet spot when consumers think about all the features that exist in the PlayStation 3. There is just no better value on the market,” said Jack Tretton in an interview with Edge-Online web-site.
Sony announced the price-cut for the PlayStation 3 lineup on the 18th of August and reduced the price of the entry-level model to $299/€299. Sony also unveiled PlayStation 3 Slim version, which will have 120GB hard drive and will cost $299 as well.
According to NPD Group, Microsoft sold 202.9 thousand of Xbox 360, Nintendo managed to sell through 252.5 thousand of Wii, Sony sold 108 thousand PlayStation 2 and 121.8 thousand PlayStation 3 units in July in the U.S.
Analysts do not expect PlayStation 3 to increase its market share because of the price-cut. According to them, $299 is still a high price for the console that can serve as a Blu-ray player as well.
“[The price cut] could help resuscitate demand for the platform and drive some additional software sales, [still], the existence of a rival $299 core-gamer focused platform, the Xbox 360 Pro, means that the impact of Sony’s move will not be as significant as the impacts from price cuts on the PS2 in the last cycle,” said Doug Creutz, an analyst with Cowen and Company investment firm.