News Article

Sony Cuts The Price Of Playstation 3

Posted by Aleksander Aasnes

Sony just announced that their upcoming home console Playstation 3, will be 20% cheaper than expected when they release it In Japan later this year.

The competition in the highly anticipated console war is undoubtly heating up, and it's getting worse, as Sony just announced that the Japanese version of their console will get a price cut. The decision was made after several complains from both developers and retailers.

The price will be cut to 47,600 yen, or about $410, from an originally planned 59,800 yen, or $515. Sony will obviously benefit from this in the console war, but as we all know, the Wii will have a much lower price tag, and the PS3 is still the most expansive home console in the next generation.

Unfortunately for those who are planning on buying Sony's Next-Gen console in Europe or US (and fortunate for Nintendo and Microsoft) , the price reduction will not have en impact on those markets, according to Sony's spokeswoman Nanako Kato.

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User Comments (4)

ReInstall

#1

ReInstall said:

Also the core package (the one with the price cut) will now include a HDMI connector, like the premium console

LessReelFX

#2

LessReelFX said:

Using a Supply and Demand graph, the lowered price in Japan indicates that either their supply shifted to the right (increased) for the Japanese market release, or the projected demand shifted to the left (decreased). If I had to take a guess, I'd say this is a demand side reaction.

Nanaki

#3

Nanaki said:

Its a demand thing, the Japanese population love their hardware maxed out. Apparantly the price was not low enough to get in orders so Sony are trying to boost popularity by decreasing it further.

The norm for new consoles (especially Sony's) is that the S&D remains relatively inelastic as they should sell out no matter what.

Sony lowering the price must mean that there was not enough interest to sell their 20GB machine.

I stick to my theory that Sony will be bankrupt (or will drop out of the console race) within 3 years.

BubyDudy

#4

BubyDudy said:

This also may affect europeans that could find it "unfair play" by Sony to drop the price only in Japan. It is like saying "we don't care about you" or "we are sure that you will buy the console, no matter how much it costs" to europeans...

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