Analysts say Sony needs to slash PS3 prices
Price cut essential to remain competitive
It’s no secret that the PS3 has been lagging behind its main competition, the Xbox 360, for quite some time. Now the company is staring down its worst year in history, all while trying to focus on delivering a next-gen console that can compete with whatever Microsoft produces. New CEO Kaz Hirai faces a real challenge in rethinking company strategy.
According to RW Baird analyst Colin Sebastian, step 1 is a price cut on the PS3. Video game industry analyst and prediction sorcerer Michael Pachter of Wedbush Securities has also said that we should expect a price cut by E3.
“Sony is in a tough position. In many areas of their business, they are losing share, such as TVs and computers, and their challenges are well known in gaming. The need to invest in a significant upgrade cycle for Orbis/PS4 comes at a awkward time for Sony, but to remain competitive longer term in games, we think there needs to be another price reduction on the PS3, and then be first to market with a next generation console,” said Sebastian.
Despite the intense competition in gaming, Sony can’t afford to rest on its laurels when it comes to other entertainment options for gamers. Microsoft, Apple and Google are all bringing heavy artillery into battle, and Sony needs to be prepared.
“The battle for the living room is only going to get more competitive with an Apple television and a bunch of Google/Android powered TVs coming to market – Sony needs to act quickly,” Sebastian said.
Sony’s overhaul of the Playstation Network may be a step in the right direction, as it focuses more on a broad service than a narrow, gaming-related service. This will allow it to compete more aggressively with Microsoft’s Xbox Live service.