Sony VP Hints At PlayStation 3 Price Cut
Yuhara indicated that a price cut is one of many factors that the company is considering in attempts to break even on its current loss making games division. “We may look at the price as part of our strategy to expand the market when the timing is right,” he said.
Speaking to reporters at Sony’s Tokyo headquarters, Yuhara also admitted that losses for the games division could exceed even the ¥200 billion ($1.6bn) operating loss currently being forecasted, blaming higher than expected advertising and shipping costs. These were then compounded by the limited amount of inventory which the game company managed to ship to stores before Christmas.
Yuhara did come close to admitting a price cut in the next financial year, beginning April 1st, 2007, saying: “Such factors, including price cuts to some extent, are factored in [to the company’s break even plans].” In Japan, the cheaper 20GB hard drive version of the console was reduced in price by 20 percent before the consoles launch, which Yuhara said was an attempt to “respond to the expectations of hardcore game fans” and ensure a smooth launch for the system.
Sony’s game division reported an operating loss of ¥54.2 billion ($0.44bn) on Wednesday, compared to a profit of ¥67.8 billion ($0.56bn) at the same time the previous year. Sales rose only 5.6 percent, despite the launch of the PlayStation 3 to ¥442.8 billion ($3.63bn).