Ubisoft's CEO Yves Guillemot says the PS3 needs a price cut to make the console more competitive:
"For sure Sony will have a different market share ... lower than before," said Yves Guillemot, chief executive of Ubisoft, Europe's second-largest game publisher, at the Reuters Global Technology, Media and Telecoms Summit in New York.
Guillemot expects the extent of the decline to be linked to pricing on the PS3. The high-end unit sells for $600 in the United States, $200 higher than the top-end Xbox 360 from Microsoft and $350 above Nintendo Wii.
"They have to decrease the price quite significantly," he said, declining to elaborate. The fortunes of the machine also depend on whether Sony can sell consumers on its next-generation Blu-ray DVD technology, since the PS3 includes a Blu-ray player.
Sony's 7-year-old PlayStation 2 sells for around $130 and has continued to rack up impressive sales versus its newer rivals. It was the leading console in the last generation with lifetime unit sales of 38 million in the United States.