Tag Archives: SCEI

Sony Still Holding Off on Price Cut

Here’s the deal.  Andrew House, president of Sony Computer Entertainment Europe (SCEE), recently said that  some stuff about the PS3 regarding a price cut.

It went something like this, “the PlayStation 3 has a ten-year life cycle and there are issues of cost and profitability… We will make that move on price when all those factors are aligned.”

Now everyone feels that Sony “stands firm on PS3 price cut”

Possible? Yes.  Very.  But I wouldn’t take Sony’s word for it.  Why the heck are they going to come out and say, “Price cut this fall!”  even if they do happen to be planning one?

They would only lose sales for the next few months by doing that.

Like I said, this is IF they plan on doing the price cut.  They might not really want to.  Right now, they are in a spot where they are damned if they don’t, damned if they do.  It is estimated that the PS3 is still sold at a loss, so cutting the price would just cut deeper.

On the other hand, the console is lagging far behind its two competitors.  Decisions decisions….

Related links below: MVC and Kotaku

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Sony Halves its Number of Suppliers in an Attempt to Cut Back on Costs

Some of the big news in the gaming biz for lots of yesterday and so far today has been Sony cutting some of its suppliers in a move that they hope will save them about 500 billion yen (or about $5.3 billion).  

This won’t all happen instantly, of course, to company is aiming to have their parts suppliers cut from about 2,500 to 1,200.

This was all after Sony reported its first annual net loss in 14 years, $1 billion for the fiscal year ended March 31, 2009.  Sony only expects that number to grow this business year.

 

Check out the details at Gamasutra and Edge.