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Sony's PS3 Pricing Conundrum

imageAnother day, another industry insider calling for Sony (NYSE: SNE) to drop the price of the PS3. This time it’s Janco Partners’ Mike Hickey, who told Bloomberg that Sony will slash the console’s price between $50 to $100 by next month. Then again, Hickey said the same thing to investors in a recent research note, so there’s no telling whether he has any real insight into Sony’s intentions.

But Hickey does seem to have a read on game publishers. Back in February, he cautioned that publishers and developers would start shifting their attention away from the PS3 if Sony didn’t drop the console’s price to boost sales. The latest stats say 6.3 million people in the U.S. have PS3s installed in their houses — less than half of the Wii’s 16.2 million, or the Xbox 360’s 12.8 million — and if Sony doesn’t start catching up to its competitors, then its stream of blockbuster games will dry up. And that seems to be the indirect message publishers like Electronic Arts (NSDQ: ERTS) are sending.

More after the jump.

While EA is “committed to the PS3,” Peter Moore, head of EA’s sports games division, told Bloomberg that

One Response to “Sony's PS3 Pricing Conundrum”

  1. F^(& YOU SONY

    Killing backward compatibility (something BOTH your competitors have !) and still charging too much… you made my decision a LOT easier… I already own a WII; looks like I will be getting an XBOX 360 with my tax return…. for gods sake; even a measly 50 dollar price drop this spring might have made the difference.

    Instead; SONYs arrogant posturing and refusal to accept the realities of the marketplace have caused another 10+ year Playstation fan to jump ship.

    The PS3 is only worth what people are willing to PAY… by its lackluster market share; I'd say the people have spoken…

    To paraphrase President Reagan – Mr Sony-chev; bring down that price !!!