Rumours of its death have been greatly exaggerated

June 2nd, 2007, 13:51 Posted By: Triv1um

Via IT Wire

Due to healthy stock levels, some industry pundits have claimed Sony will be reducing production of the PlayStation 3. Not so says Sony.

Rumours around the production levels dropping slightly and a possible market price drop for the Sony flagship have had industry Analysts busy all week.

Nick Sharples, Sony Director of corporate communications was on the front foot;
"I'm not aware of any cut in production. We have our forecast for the year for PS3 of ten million and that still stands. Of course, production is adjusted according to stock levels and requirements of different territories. The normal seasonal uplift towards the peak season will happen, but that's completely normal. "

"There's absolutely nothing that you can read from that. The idea of price certainly doesn't follow on to any adjustment in production. Analysts may wish to think so, but there's no basis of fact in any of it."

"We announce when changes in price will happen and we don't discuss them beforehand." (Source: MCVUK)

Indeed component costs of the PS3 - such as the blue diode used in creation of the Blu-ray disc drive laser - have had Analysts asking if a corresponding price drop at the market level would help the seemingly flagging game console.

But Sony have consistently maintained that no price drop is on the horizon, Sharples still confident that the PS3 will go on to sell tens of millions, putting it in the position to win the next-generation console war, for Sony, the third time in a row.

Recent reports from Japan give some basis to the Sharples claims as the PS3 gains a small increase in market share. The PS3 sold 9,627 units for the May 21 to May 27 week, up from 8,659 the previous week.

Still this keeps the PS3 in fifth position overall in the important Japanese game console market. Nintendo holds the top two positions (DS Lite: 127,461, Wii: 58,644), followed by the three Sony machines (PSP: 26,097, PS2: 11,311 and PS3: 9,627). Meanwhile the Microsoft Xbox 360 continues to struggle in the Japanese market selling 2,044 units for the same week.

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