Analyst: No Need for PS3 Price Cut

by William D'Angelo, posted on 21 April 2012 / 6,417 Views

According to Jesse Divnich, an analyst at EEDAR, Sony does not need to cut the price of the PlayStation 3. It was found out today that GameStop cut the price of the 160GB PlayStation 3 model to $199. It was made clear by a Sony spokesperson that it is temporary and that it was GameStop not Sony who cut the price.

"I don't believe the PlayStation 3 needs a price drop at the moment," said Divnich to Games Industry. "Sales have been consistent and in-line to what one would expect for a platform that continues to successfully grow its install base so late in a console cycle."

Divnich was asked if the GameStop was any indication to a price cut at all retailers. "There could be many elements at play, but I highly doubt this is any indication of weakness for the PlayStation 3."

The key phrase is "at the moment" which refers to the immediate future. It is likely that Microsoft will cut the price of the Xbox 360 at some point in 2012, because the base price has remained at $199 since 2008 and with the launch of the Wii U this holiday season. Sony will also likely match any price cut made my Microsoft as to not fall behind in sales.

Another reason for Sony not to cut the price of the PlayStation 3, that Divnich did not mention, is that it has been the best selling home consoles in 2012 according to VGChartz. It has sold 3.1 million units as of the week ending April 14. This compares to 2.3 million Xbox 360's and 1.5 million Wii's sold during the same time span.


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13 Comments

miqdadi (on 21 April 2012)

It needs a price cut to catch up with 360 in the US at least, Vita needs a price cut quickly if it's ever going to grow fan base, also it needs software releases


VGKing (on 21 April 2012)

lol!
It will never catch up with the 360 in the US.


  • +4
MonstaMack (on 21 April 2012)

But it just got one. Well at Amazon and Gamestop anyways...


MARCUSDJACKSON (on 21 April 2012)

nice but PS3 should get price cut this yr. to $179. that's just my opinion. great read.


VGKing (on 21 April 2012)

The hell? what makes you think Sony would so a $70 price cut? It's completely unnecessary.


  • -3
duckypwns (on 21 April 2012)

Who cares? Some of us just aren't going to buy a PS3 until it's less expensive. Not everybody is talking about what Sony should do necessarily but what we want.


  • +1
TheKoreanGuy (on 22 April 2012)

What you want? Then you should be asking for it to be free instead.


  • -2
duckypwns (on 23 April 2012)

Pointless comment.


  • +1
newgroundsguru (on 21 April 2012)

They really need to cut the damn vita already! they haven't even topped 2 million.. i just cant part with $300, even $250! make the wifi one $170 and the 3g $230.. then i wll get the damn thing!


kumagawa (on 21 April 2012)

The Sony may as well discontinue the Vita now because if they cut the price that much they'll be selling at a loss something they can't afford.


  • -2
Jega (on 21 April 2012)

I don't want to burst anyone's bubble but the ps3 has not made any profit for sony, that is why this analyst is saying sony does not need a price cut. Sony has invested billions into the playstation 3 and have lost billions due to cutting the cost too early so that consumers will buy the system. The Xbox was a losing business for microsoft and the xbox 360 was bleeding money for microsoft in the first two years of the systems life and then the whole RROD fiasco which bled another 2 billion dollars but since 2007 when halo 3 launched microsoft has had consistent profits from quarter to quarter. I think sony has stopped losing money on the ps3 for about a year now and I think Microsoft is making a profit off every xbox 360 sold for like a year now. The Xbox 360 has made billions for microsoft so much so that I think microsoft is closing the gap on the losses from the origional xbox or has already made up for the losses from the origional xbox and are now making gains. So yea guys sony has not made back the money they lost on ps3 hence this analyst is saying Sony does not need to drop the price as the ps3 is selling relatively well at it's current price.


Sitti (on 22 April 2012)

Hmmmm where do I start. You got it all wrong. Sounds like you are big Xbox fan but you need to read some real news and check Microsoft Annual Report. Xbox 360 is not making money. Microsoft is still and willing to continue to lose money to keep Xbox going. Sony is losing money on TVs but they are making money PS3, even though you may want to believe PS3 is losing money. PS3 has been profitable since around the 4th quarter of 2009. They still make profit even after the price cut. Xbox is not in very good shape at this point. They had an advantage of 1-year head start. However that advantage is gone now. On weekly bases, PS3 has been outselling 360 for quite a while. MS is relying on charging fee for Xbox live for Xbox revenue, which is one of the major cause of losing customers. Mr. Hirai has done great job structuring PlayStation business. He managed to lower PS3 price and continue to offer free online gaming while maintaining profit.


  • -1
Sitti (on 22 April 2012)

Hmmmm where do I start. You got it all wrong. Sounds like you are big Xbox fan but you need to read some real news and check Microsoft Annual Report. Xbox 360 is not making money. Microsoft is still and willing to continue to lose money to keep Xbox going. Sony is losing money on TVs but they are making money PS3, even though you may want to believe PS3 is losing money. PS3 has been profitable since around the 4th quarter of 2009. They still make profit even after the price cut. Xbox is not in very good shape at this point. They had an advantage of 1-year head start. However that advantage is gone now. On weekly bases, PS3 has been outselling 360 for quite a while. MS is relying on charging fee for Xbox live for Xbox revenue, which is one of the major cause of losing customers. Mr. Hirai has done great job structuring PlayStation business. He managed to lower PS3 price and continue to offer free online gaming while maintaining profit.


  • -1
TheShape31 (on 23 April 2012)

Sitti-

You are so wrong it's silly. Microsoft has been raking in profits on the X360 for far longer than Sony has with the PS3. Every bit of the X360 hardware is far cheaper to manufacture than the Playstation 3's. Please do your research.


  • +1
TheShape31 (on 23 April 2012)



  • 0
TheShape31 (on 21 April 2012)

If all these retailer price drops are telling us anything, it's that both Sony and Microsoft are jacking the price of their respective consoles way above what consumers should be paying at this point in time. Price drops from both companies are the only necessary thing to consider in order to keep industry sales high and show some consideration for us, the consumers. It's not out of the question that the PS3 and X360 are pulling in at least $100 in pure profit per console sold at this point. When any company (including Nintendo) charges nearly a 100% premium beyond their product's actual value, it's time to reconsider how important playing games is. Just because Sony and Microsoft made bad decisions and lost lots of money early in this generation, it does not give them the right to blatantly rip off consumers in order to try and break even. No console is worth purchasing at their current price, the value simply is not there. If you disagree with me, please do lots of research before stating your point. Thank you.


Baalzamon (on 21 April 2012)

You sure have an awkward view on things. Sony has the RIGHT to charge whatever the hell they damned well feel like charging. If you aren't happy with it, then don't purchase their products, or buy into their stocks if you honestly think they are making that much per console.


  • 0
Slimebeast (on 23 April 2012)

First of all $100 profit per console sold is unrealistic. It's less than that.

Second, $300 for a X360 is worth it and $250 for a PS3 is an absolute bargain. The PS3 is amazing value. You have a huge library of awesome games this late in the generation. It's more than worth it, which sales prove because we have never before seen anywhere near such high sales so late in a console generation.


  • -1
AmericanAli (on 21 April 2012)

well,that will close the gap between ps3 and 360 global sales.


Galvatron (on 22 April 2012)

The PS3 doesn't need a price cut...The Vita does.


Tisoyboy2 (on 22 April 2012)

Game Stop is already offering a great deal on the PS3. And many people were bashing the system its first few years out when it had a slow start. And many of those same people bought one when the price dropped with the slim a few years back which is the reason the PS3 is almost equal in total sales with 360 in a shorter life span. This shows that the system was never inferior to begin with. Its the consumers inability to afford the PS3. This is the case with the 3DS and will be the case with the Vita. You bash things you can not obtain but secretly desire. "The Vita needs more games" yeah we hear that everywhere. But the Vita had a sizable title launch release. This is a double edge sword. Consumers want more titles before buying a Vita and Developers want more Vitas sold before making more titles. Really, I don't see the point in depriving yourself of something for a couple years to save 50 - 100 bucks. Most people make more than that in one day at work.


thewastedyouth (on 21 April 2012)

forget the PS3, how about they lower the price of the Vita no one is buying that thing, feel sorry for the people that paid so much for a handheld, it will go down and they will look like fools


VGKing (on 21 April 2012)

" It is likely that Microsoft will cut the price of the Xbox 360 at some point in 2012" We all said the same thing in 2011...look how that turned out :D I say say MS wont' cut price unless 360 sales really fall.


Heavenly_King (on 21 April 2012)

I would not be surprised if the PS3 has already passed the 360.


Majora (on 21 April 2012)

I'd say the way it's selling right now - I agree. I'd buy one at the price it is now if I didn't have one. It's an awesome machine.