Sony Will Will Not Lower PS3 Price

Forget what you may have thought you heard.

Sony had to correct itself this week, taking back comments that suggested it was thinking about dropping the price on its six-month-old PlayStation 3.

Speaking to the Financial Times, Sony president Ryoji Chubachi said that the company was re-examing its budget process in terms of pricing and volume. "Sales assumptions change and the market is competitive," he said. "We are in the midst of revisiting our strategy for the PS3."

Many took the statement to mean that Sony was considering lowering the price on the PlayStation 3, which sells for £425 in the UK. The company shot back that this wrong.

"PS3 prices and shipment plans for the future should be determined by market trends and competition. Sony currently doesn't have any specific plan to cut the PlayStation 3's price," said Sony's Mami Imada, as reported by Gamasutra.

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Meanwhile, several retailers in the UK have been stepping up, lowering the price of the console to as low at £390 in the case of online store Gameseek. Company boss Stephen Staley told MCV this week that the retailer would sell the system at a loss for now in order to help the PS3 get a foothold in the market.

There's more streamlining in the US. Sony recently stopped production of the cheaper 20 GB model of the PS3 because, it said, demand was 10-to-1 in favour of the 60 GB model.

According to a cost breakdown by research firm iSuppli, Sony is estimated to be losing more money on the 20 GB model than on the 60 GB model. The company did not comment on whether this had any bearing on the decision to cut down on its hardware offerings.

Alex Wollenschlaeger
Editor, Kikizo