PlayStation 3 Needs a Price Cut to Stay Relevant, Analyst Says

Sony's best bet of beating the Xbox 360 is a price cut

Sony will make a price cut to its PlayStation 3 home console soon, in order to keep it relevant before the announcement of an actual replacement, in the form of the next generation PlayStation 4 (aka Orbis), at least according to games industry analyst Colin Sebastian.

Sony hasn’t been going through the best of times recently, as after some very bad financial results, it was forced to lay off a considerable amount of its workforce and restructure current departments.

In order to keep the PlayStation division profitable, RW Baird analyst Colin Sebastian has revealed that a price cut is pretty much mandatory in the next few months.

According to him, such a discount will definitely improve the PlayStation 3’s position in North America, where it’s consistently outsold by Microsoft’s Xbox 360 almost every month.

"Sony is in a tough position. In many areas of their business, they are losing share, such as TVs and computers, and their challenges are well known in gaming. The need to invest in a significant upgrade cycle for Orbis/PS4 comes at a awkward time for Sony, but to remain competitive longer term in games, we think there needs to be another price reduction on the PS3, and then be first to market with a next generation console," Sebastian told Games Industry.

Sony’s PS3 and the next generation PS4 will have a much tougher time in the next few years, as not only will the Japanese company need to rival Microsoft’s next Xbox, but also other big corporations that will muscle into the living room environment, from Apple to Google.

"The battle for the living room is only going to get more competitive with an Apple television and a bunch of Google/Android powered TVs coming to market - Sony needs to act quickly," warned Sebastian.

Wedbush Securities analyst Michael Pachter has also predicted a price cut for current consoles last week, pointing out June’s E3 2012 expo as the perfect venue for such announcements.

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