PS3 Needs $200 Price Cut To Recover

May 25th, 2007, 19:57 Posted By: Triv1um

Via GWN (GameWorld Network)

An analyst from the Bank of America has been speaking with Gamedaily, and says that he believes Sony must cut the price of the PS3 by $200 in order for it to maybe recover next year.


The analyst, Michael Savner, says:

"While Sony could cut the price by $150 - $200, we view that as less likely given that it is already losing approximately $200 per console at $599, based on our estimates ... Offsetting a potential price cut are decreasing production costs, which should improve significantly this year. We estimate that the loss per console could decline to about $50, assuming Sony does not cut its wholesale prices. Bottom line, we don't expect Sony to make up meaningful ground against the Wii this year."

Savner goes on to talk about how the Wii is hurting the industry, because publishers invested in next-gen graphics and tech, and if the Wii continues to dominate then that money will be wasted somewhat. He also comments that Nintendo doesn't play well with third party publishers.

Savner's entire interview seems to lead us to one conclusion - that it's in the best interest of the industry for the PS3 to do well.

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