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Sony PS3's price won't drop quick

Posted on Wednesday, January 24 2007 @ 02:10:52 CET by

Another piece of bad news for the PS3 as SCEA's President and CEO Jack Tretton says price cuts on the PS3 won't be significant. He says it will be difficult to cut the price of the PlayStation 3:
Tretton reasoned that the enormous R&D costs of the PS3 make it “a lot more difficult to cost reduce” than the PS2. “There's a heck of a lot more under the hood and it costs us more money to make it,” said Tretton. He may be referring to the fact that Sony is selling every one of its new consoles at a loss, making it nearly impossible to move on the price until manufacturing costs are reduced. Analysts currently estimate that Sony is taking a $241 hit on 60GB versions, and a $307 loss on 20GB PS3s.

The Sony executive remained confident in the machine’s price point, saying that the PS3 still represents an excellent value. “I think the consumers that get their hands on a PlayStation 3 clearly see the value and not only want to buy one for $599, in some instances they're willing to pay ridiculous prices to buy one on eBay,” Tretton said.



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