PS2 Price Cut: What it means to you?

We informed you earlier today that Sony has confirmed a price cut for its aging PS2 games console, the price will now be $99.99. This 20 percent price reduction will take effect from tomorrow, but only for the US and Europe, not for the UK.

Sony hopes that this new price reduction will help to increase the lifespan of the old console, which is now nine years old. The PlayStation 2 has sold almost 140 million units since its launch in 2000. I do not understand why Sony would want to reduce the price of this old games console; a price cut on the PS3 would be more welcome to consumers.

Sony has maintained that they will not reduce the price of the PS3 as they already make a loss on the console, but I do not understand why they could not keep the price of the PS2 the same and reduce the price of the PS3 by that same amount. That way Sony are losing the same amount of money, but they will also be able to shift more PlayStation 3 consoles, in turn they will then sell more game titles which is where the profit is.

Games Industry reports that Microsoft has reacted to the Sony PS2 price cut by shrugging off suggestion of increased competition from Sony with the PS2. Sony said that the price cut would bring in new consumers to the Sony platform. Microsoft has dismissed the price cut, saying that the future is all about growth of current games consoles, not old technology like the 9-year-old PS3.

What does this price cut mean to you?

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