Howard Stringer: PS3 price-cut would lose us money

By: | July 8, 2009 | 3 Comments
Howard Stringer: PS3 price-cut would lose us money

Sony Corp Chief Executive Howard Stringer has spoken out on the current price of the Playstation 3 console and he believes that if a price cut was introduced, it would cause the company to lose money in the long run.

According to this Reuters report, Stringer reacted strongly to recent comments made on the PS3 price by Activision’s Robert Kotick. Kotick stated that his company might stop developing games for Sony’s console if the price remains as it is.

Stringer fought back stating: “He likes to make a lot of noise. He’s putting pressure on me and I’m putting pressure on him. That’s the nature of business.”

He also had a word to say on the price of the PS3 stating: “I (would) lose money on every PlayStation I make — how’s that for logic.”

What do you make of the remarks? Theres more details through the link.

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  • Slippy Sloppy

    I could be wrong (fanboys let me know if I am) but if the PS3 was selling enough games then they could afford to make more of a loss on each machine. If the PS3 wants to succeed, and personally I don’t consider it a failure, then it needs to sell more consoles in order to sell games. It’s simple logic.

    • bunimomike

      It’s a tricky one due to game purchases. It’s £300 over here. If they lopped £100 off so it retailed for £200 then they need to make that £100 back somewhere along the line. That means making an extra £10 on each game… with ten games sales. That’s a tall order and game prices would then go up.

      Simple maths (maybe too simple) but that seems about it to me. Ultimately, it needs to be recouped from somewhere… and at the moment it’s the hardware.

  • bunimomike

    Re: Stringer’s comments

    They’re not bullish or arrogant. They’re simply truthful. Sadly, this means that a price-cut might not be around the corner and more sales will be lost. Whether this equates to less money for Sony is something else (seeing as increased sales would mean more games being bought). It’s a tricky one and one that Sony must weigh-up everyday, no doubt.

    Shame they went with such bespoke hardware. It’s doing them more harm than good, I fear.