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Publishers push for PS3 price cut

By Tom Magrino, Gamespot.com

Sony is in a precarious position with the pricing structure for its flagship gaming console, the PlayStation 3. On the one hand, the Japanese electronics giant is taking a beating across many of its divisions as part of the global economic climate. That problem could be aggravated if Sony were to cut the PS3's price tag.


Is Sony cutting the price of the PS3 by US$50 to US$100 as early as April??
On the other hand, the hardware manufacturer is facing increasing pressure from its third-party publishing partners to lower the price of its console or risk having development resources diverted to other systems. Speaking to financial news service Bloomberg, Janco Partners analyst Mike Hickey said he believes that unless Sony can substantively increase the PS3's installed base, publishers will likely enact "a capital reallocation" of resources to Nintendo's market-leading Wii. As such, Hickey said he believes Sony will cut the price of the PS3 by US$50 to US$100 come April.

The call for a price cut is apparently being echoed throughout the publishing community. Bloomberg notes that publishing giant Activision Blizzard derived 39 percent of its revenues during 2008 from the Wii, as opposed to 19 percent from the PS3. Fellow publishing heavyweight Electronic Arts has also begun pouring more effort into the Wii, with CEO John Riccitiello saying that as part of his company's third-quarter earnings report in February EA must "increase focus on the Nintendo Wii platform".


Tags: Sony Corp., console, Nintendo Co. Ltd., Electronic Arts Inc., Sony PlayStation 3
 

 

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