14 DAY TRIAL // That's right: Meaningless! Sure, we've heard a lot of news saying that the manufacturing costs of Blu-ray diodes will considerably drop the PS3's price starting this summer, but even with a price cut of as much as $100, it still won't make a difference. Or at least so thinks Bank of America's Michael L. Savner, who states the following:
"While Sony could cut the price by $150 - $200, we view that as less likely given that it is already losing approximately $200 per console at $599, based on our estimates," Savner said. "Offsetting a potential price cut are decreasing production costs, which should improve significantly this year. We estimate that the loss per console could decline to about $50, assuming Sony does not cut its wholesale prices. Bottom line, we don't expect Sony to make up meaningful ground against the Wii this year," Business Week posts.
I'd say he's quite right! Not only will the PS3 still be some 25% more expensive than Microsoft's Xbox 360, but we should consider a price cut for the 360 as well, maybe even the Elite. So what good will a price cut do to the PS3 then? All consoles will be seeing a price cut at the time the PS3 will cost some $500, or soon after.
And what about the titles? As much as I like to be a faithful PlayStation fan, I can't admit that nothing in this world will help it get back on its feet by the end of this console war. Not to mention that the appearance of a new powerful console will only ensure better sales for Nintendo, as people are starting to be rather skeptical about Blu-ray/HD-DVD playing hardware. The PS3 doesn't sell, while Xbox 360 units break more often than sand castles. So what do people turn their attention to? The Wii of course. It is cheap, fun and it never breaks. What if the Wii sees a price cut between summer and autumn? Guess that's that for Sony, huh?