Analyst Agree, Sony Needs to Cut Prices in PS 3 and PSP

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According to an article on GameDaily yesterday, there are two different analysts who believe that Sony will drop the prices on the PS 3 and PSP sometime within this next fiscal year.

Sterne Agee’s Arvind Bhatia states "We believe Sony’s FY09 forecast of +30 percent for PS3 hardware unit sales implies a definite and meaningful price cut sometime this year, as that is really the only way we see for them to change the sales momentum for PS3," wrote Bhatia. "Additionally, we note Sony is forecasting PSP hardware sales to be up 6 percent in FY09 after being down 30 percent in the most recent quarter. We believe this forecast implies Sony will likely do two things 1) introduce an upgrade to PSP and; 2) lower the price of the current generation PSP."

Colin Sebastian from Lazard Capital agree saying "Significant price cut could provide the PS3 with a needed shot in the arm. In addition to a $100 price reduction, which would put the PS3 in easier reach of a mass market audience, we note that Sony has a healthy lineup of upcoming first-party video games planned over the next year, including Infamous, God of War III, Heavy Rain, Uncharted 2 and Gran Turismo 5."

"Price cut would also be positive on the margin for software publishers and GameStop, given lackluster sell-through thus far of the PS3 and the potential for price cuts to generate additional consumer interest in the platform and PS3 software. We also believe the sweet spot for console sales is below $300; thus, a price cut of less than $100 would likely be perceived negatively by the market. For Sony PlayStation, we believe the next 12 months are critical to regain market share, particularly with Nintendo losing some momentum near-term, and with Microsoft likely introducing a new gesture-based user interface."

We hope to see something happen at Sony’s Press Conference on Tuesday June 2nd. We will be there live to cover all the latest.

In : PC

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