Analyst Michael Pachter says PS3 price drop this summer

If the 60gb dropped to $400 this summer, I'd buy one. I doubt it will tho.

price drop in the first year?
that would be a record.
not that they don't need it though....

It wont happen, but prolly happen next year.
Because Blu-Ray diode prices have been steadly falling.

Sony will start making a profit on Ps3, and will want to make a large profit for a while to recoup loses.
THEN they will cut price and pass on savings to consumer.

Economics 101.

Sony: "I wish I was big"

2. price drop in the first year?
that would be a record.

LOL

@2 - The original Xbox had a price cut of $100 in its first 6 months.

Bullshit!

Hopefully Microsoft will also cut the price of the Xbox 360. That would be excellent in response.

lol at #8

I CALL SHENANIGANS!

6. @2 - The original Xbox had a price cut of $100 in its first 6 months.

True true...

A sign of things to come?

Sony is in a pickle. If they don't do a price cut, they can't sell any PS3s. If they do have a price cut, they lose even MORE money per system sold AND they have just ripped off and insulted all their early adopters. Here's a fun brainteaser: let's try to brainstorm ways Sony can get themselves out of this pickle!

No way.

"Estimates for a PS3 price drop range in the $100 region. It hasn't been a pretty day for Sony, so anything that could drive sales would be worth considering."

Except that their losses INCREASE if they sold even more consoles at an even lower price. It's hard to imagine that they've already shaved $100 off of the cost of producing a PS3, but I suppose anything is possible. Still, the more PS3s they sell, the more they lose in the short term. It could help them in the longer run, but those losses that they just reported will only increase if they started selling a lot more consoles (and thus had to increase the supply).

-Leshrac
http://alinktothefuture.com

@ Leshrac

think reductions in production costs

But as i stated elsewhere, they might just use those reductions to allow price drops, but keep the loss per unit the same

I have a feeling Sony will have 2 mini price cuts for the PS3 instead of 1 substantial price cut to capitalize on the attention each price cut would receive. My guess is 1 price cut of probably $50 in the summer, and another $50 in the holidays. That's my theory.

was it really only 6 months when the xbox got it's price cut?
wow, i guess since MS had such a big budget for the xbox they didn't really worry too much about gaining profits ASAP.

Sony on the other hand has been taking a big hit for the PS3, and doesn't have obscene resources from corporate. They won't drop the price until console costs at least break even, they can't compete with the same business model as MS.

Yeah, rock and a hard place.

They've probably reduced their production costs considerably, but I sincerely doubt that they're at the break-even point.

So

Option 1: Stand pat and bleed money, hope for a holiday breakthrough, or for blue diodes to fall from the sky over their parking lot.

Option 2: Cut the price and bleed even MORE money, and hope that the boost in sales is enough to spur the software companies through the next development cycle.

Early success breeds later success, as we saw with PS1 and PS2. A bad first year won't kill them, but a bad sophomore year will.

The production of the PS3 has dropped more than 30% in the past 6-7 months? Kinda hard to believe.

The production costs* btw.

This can't happen. They have to clear current PS3's with the current $600 price tag off shelves first before they put up the new lower priced PS3. And that ain't gonna happen THIS year...Ha ha ha!

I kid I kid.

But really, the only reason this won't happen is because Sony isn't that smart. I bet they honestly think the PS3 is a runaway hit and is selling to their satisfaction. They also probably think that the PS3 has a compelling (current) software lineup. They are thinking "Lower the price? Are you NUTS? These things are selling like HOT CAKES with the price as it is now! We have no plans to change our pricing strategy. Now be gone so I can play on my DS."

smart thing to give away a game for same price. give resistance free with purchase and demo disk of upcoming games. either that or give away spider-man 3 blue-ray way before dvd releases. like july comes free with ps3 in box but dvd doesn't hit until november. that would be good . price cut won't help something drastic like this might

By summer? FALSE.

In time for this holiday season? Perhaps. That would be nearly a year on the shelves. Wii still isn't meeting demand but they aren't selling additional units either. So right now I'd say it's a stalemate.

As summer rolls along and the Nintendo ship really starts steaming along Sony's belt is going to get tighter and tighter. Price drop in the holidays with some sort of Top title in early spring would be a reasonable boost until more titles can be announced/released.

Lets do a little comparing.
PS3=$599 (sans tax)
This includes Blue Ray and DVD, 60gb hard drive, ability to play online for free, (Soon Home) Wireless controller, Memory card reader, WiFi and HDMI.
X-box 360=$399
No HDMI, 20gb hard drive, Wireless controller, 1 month xbox live gold, Infamous red ring of death.
HDDVD Drive=199
XBOX 360 with HDDVD Drive=$598
So you tell me which is the better deal. You only save $1 if you get the XBox 360 premium and HDDVD drvie with no 1080p.

I am glad that I got my PS3 at least Sony isn't trying to hide its total cost buy making you buy an add on drive to get HD quality movies, with out downloading it. Plus I find it pretty underhanded to release another console and trying to get its customers to buy that one in order to get the 1080p and HDMI. So if you go the elite way then you are atualy paying $678 (sans tax) with the added HDDVD drive. Plus don't you know you can upgrade your PS3 hard drive to a bigger one. Or even use a portable USB Hard Drive.

Just my two cents.

Ixnay, price comparisons make you a moron, everytime.

Grant, fastest console to drop their price? Nintendo DS. Within four months, DS got a $20 price drop. Xbox and Gamecube also saw quick price drops, as did Dreamcast and even Genesis.