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Analysts: Sony 'Under Pressure' To Lower PS Vita Price
Analysts: Sony 'Under Pressure' To Lower PS Vita Price
August 8, 2011 | By Mike Rose

August 8, 2011 | By Mike Rose
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    13 comments
More: Console/PC, Business/Marketing



Japanese gamers are under the impression that Sony will cut the price of the PlayStation Vita in response to the Nintendo 3DS price drop, according to analyst reports.

As reported by Bloomberg, Ace Securities analyst Hideki Yasuda explained that if Sony does not drop the price of its upcoming PS Vita, it could result in a huge issue for the company.

"Gamers are increasingly anticipating Sony to lower prices, especially after the 3DS cut," said the Tokyo-based analyst. "Sony is under major pressure to cut the price of the Vita or risk a major failure."

In light of the Nintendo 3DS price cut, Sony president Kaz Hirai said that Sony will not be reducing the price of its handheld, noting, "We have a very good product at a very affordable price."

"Thereís no need to lower the price just because somebody else that happens to be in the video game industry decided they were going to."

However, numerous analysts believe that Sony should indeed be concerned. "The environment for portable game players has become more difficult because of smartphones," noted Koki Shiraishi of Daiwa Securities.

Shiraishi estimates that shipments of the PS Vita will be about half of its predecessor, the PSP, compared to the productís first two years.

Shiro Mikoshiba, analyst at Nomura Holdings, had a different perspective. "The customers Sony is targeting with its Vita are those willing to spend a lot of money," he explained. "Thatís a valid strategy even if the volumeís low as long as it can sustain the higher price."


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Comments


Ujn Hunter
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$150 for a handheld gaming system is where I'm willing to join in. That being said it's all about the games and I'm uninterested in touchscreen & gyroscope gameplay so both the 3DS & PS Vita already have things working against them in my book. The PS Vita has a better chance of landing in my hands however due to lack of 3D gimmick, dual analog nubs (Nintendo hates Left Handed people), better form factor & what looks to be a stronger lineup of games.

thay thay
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With the state of the world economy, I doubt many will be rushing to spend so much on the handheld unless its an apple product of course.

Doug Poston
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"Japanese gamers are under the impression that Sony will cut the price of the PlayStation Vita..."



I predict Japanese gamers will be disappointed. ;)



I'm not a hardware cost expert, but the Vita has just about every bell-and-whistle available in a handheld (it's only missing a phone). Sony isn't a charity.

Celso Duran
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I agree, I think $250 is an excellent launch price for the Vita. Just because the economy is in bad shape doesn't mean that companies should start giving away their products. Sony has human employees with families and salaries to support those families, things don't get built for free.

Duong Nguyen
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Wha? So you have to cut price before release now? Consumers are expecting too much, Sony already takes a loss per device or close too it.. Whoever is calling for price cut is just dumb, it would put Sony even more in the red for every device sold and take even longer to recoup though 2ndary sales..

Lyon Medina
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Last they need is a pricedrop agreed. But in my opinion they need to rethink their strategy then just most advaced handheld out their mentality. Didnt work for the PSP, won't work here.

Patrick Davis
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Agreed. You can add the PS3 in there too. Why does my game console/handheld need to be jack of all trades? I've always liked Nintendo for keeping a game machine a game machine. Don't get me wrong, it isn't all bad. I'll admit I like the Blu-ray in my PS3, but the other extras weren't a must have by any means. Games sell a console, not extras.



This smells of PS3 release. Sony just loves to believe they have this giant following of brain dead people who will pay top dollar no matter what. Yeah, the system might do all that, but your general person is not willing to pay $300 for a handheld.

Aiden Eades
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*rage*



I always hate when I see americans complain about paying $300 for a handheld, or $600 for a ps3.



I had to pay £600 for my PS3, at launch time that was somewhere in the region of $1000. But I agree with you to an extent. More than likely they won't lower the price. But at the same time they're likely to do something along the lines of "when you buy it you get a free 1st party title." or "a choice of the following psVita games and aps from the store." or maybe just a discount for a period on the psVita store.



It'll be something which prevents them making a loss, has the potential of making a profit (discount) and makes the gamer feel like they're getting something when they're not.

Doug Poston
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Dude, give us US citizens* a break. We're broke! ;)



(* I'm assuming you're talking about the USA when you say "americans", because people in Brazil and Chile pay even more than you do for gaming hardware).

Lyon Medina
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@Aiden Eades



I think the issue when it comes to price for Americans (and a whole segment for that matter) is we are trying to justify paying so much. 600$ is a month's rent for me, and I am only getting a game console. Not a phone, not a microwave, not even a small fridge.



It's about being competitive with a competitive product. If their product costs to much to get to market, it creates this domino effect. I cannot see Sony (unless they get a great listing of games) walking away from this in the postive. Yes it's the best handheld ever made. But do we really need it for the level of play were looking to get out of a handhled? My answer is no, time will tell.

Lyon Medina
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I think handhelds that do not have a connectivity service, is a shrinking market segment. The Vita is launching into hostile territory of where people don't have the ability to buy a 200$+ handheld and a 200$+ phone (Plus contract fee's.) Parents now want something with functionality to contact their kids, and even IPods allow for "Face Time", which is the ability to make a call face to face with another person for those people who don't know, and this is with out even having AT&T service or any phone service provider.



Vita as advanced as it is, does not offer a good enough way to for its consumers to "stay" in contact. To "stay" connected with others, with friends or family. If I had the choice of choosing a phone over a handheld? I would always go phone first, then MP3 player, like smart phones now a days I can have both with one purchase. I say the cheapest answer then can do currently is develop a texting type application. It's a bad substitute, but its something.





I love the quote by Shiro Mikoshiba "The customers Sony is targeting with its Vita are those willing to spend a lot of money,Ē If this statement is true then I am definitely not being marketed to by Sony.

Justin LeGrande
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I think the Vita has a fair price point, but... like I wrote in the Vita posts on August 4... I don't think the Japanese PSP audience is highly interested in _buying_ the Vita yet. The PSP already has plenty of software and hardware add-ons to cover the majority of the Vita's media and communication features. As for the truly new features of the Vita hardware and software, I think prospective customers will just wait until the software they really want is released. Not everyone is going to get behind the PS3-like titles of the launch lineup, just like not everyone went behind the PS2-like titles of the PSP launch lineup.

Simas Oliveira
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I can't see why Sony and Nintendo simply don't implement facebook + facebook apps support and a more accessible to indie devs app store in their handheld systems. This would both mean that most iOS games could be easily ported and sold and it would be the FarmVille portable machine. Practically a license to print money.



I don't mean cut the hardcore features, but implement the casual/social features to expand the audience, so they can face the booming trends of lately. This way we can keep on playing God of War and Mario, and moms around the globe would be able play Zynga's latest "game" in the toilet, and kids can have their Angry Birds fix without having an expensive iDevice.



The Vita specially would be perfect for iOS ports, and Sony could reach an agreement with Facebook to let their stuff be playable in it. They could charge even more and it still would sell a trillion units.


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