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far2000 · 06-18-2007, 05:11 PM

NEW YORK (CNNMoney.com) -- Japanese electronics giant Sony may cut the price of its PlayStation 3 by $100 worldwide in October, according to an analyst with Goldman Sachs.
Yuji Fujimori wrote in a note Tuesday that lowering the cost of the game console, which competes with Microsoft's (Charts) XBox 360 and Nintendo's (Charts) Wii, will not undermine the unit's long-term profitability.

The PS3, criticized by consumers and industry watchers for its high price, can cost up to $700, although the basic model retails for $499.
"The PS3 price has long been cited as high," Fujimori wrote, noting that cutting the price of game consoles has historically quadrupled volumes.
Fujimori sees simplification of design aiding PS3's profitability as well, noting Sony's (Charts) original PS began with 700 components and concluded with 200, while the PS2 started with 2,000 parts and finished with 600. The PS3 prototype had 4,000 components but now a shift to around 2,000 is in the pipeline.
Earlier in March, press reports in Japan said Sony is planning to introduce cheaper microprocessor chips for its PS3 to help bring down the price.

06-18-2007, 05:11 PM	#1 (permalink)
far2000 Advocate Join Date: Dec 2006 Location: Swaziland Posts: 598 My Mood: Thanks: 346 Thanked 288 Times in 144 Posts	PlayStation 3 price cut may be ahead NEW YORK (CNNMoney.com) -- Japanese electronics giant Sony may cut the price of its PlayStation 3 by $100 worldwide in October, according to an analyst with Goldman Sachs. Yuji Fujimori wrote in a note Tuesday that lowering the cost of the game console, which competes with Microsoft's (Charts) XBox 360 and Nintendo's (Charts) Wii, will not undermine the unit's long-term profitability. The PS3, criticized by consumers and industry watchers for its high price, can cost up to $700, although the basic model retails for $499. "The PS3 price has long been cited as high," Fujimori wrote, noting that cutting the price of game consoles has historically quadrupled volumes. Fujimori sees simplification of design aiding PS3's profitability as well, noting Sony's (Charts) original PS began with 700 components and concluded with 200, while the PS2 started with 2,000 parts and finished with 600. The PS3 prototype had 4,000 components but now a shift to around 2,000 is in the pipeline. Earlier in March, press reports in Japan said Sony is planning to introduce cheaper microprocessor chips for its PS3 to help bring down the price.