Sony Still Says "No Price Cut" - The UpStream

Sony Still Says "No Price Cut"

posted Saturday Jul 11, 2009 by Scott Ertz

Sony Still Says

Bobby Kotick, head of Activision, has been saying for weeks that Sony needs to cut the price on the PS3. He even suggested that they might stop developing for the PS3 if the price isn't cut saying "If we are being realistic, we might have to stop supporting Sony... When we look at 2010 and 2011, we might want to consider if we support the console - and the PSP too."

So far, this has not been a popular threat around the Sony water cooler. Sir Howard Stringer, Sony's CEO, called Kotick a blowhard.

He likes to make a lot of noise... He's putting pressure on me and I'm putting pressure on him. That's the nature of business.

Jack Tretton, President of Sony Computer Entertainment America, had a lot more to say on the issue:

People are always wanting you to lower your price on hardware. We could've come out with a PlayStation 2.5 for $299 or less, and in the first two or three years it would sell extremely well. But there would be a point where people would be going, "I am not really seeing the incremental leap." We feel that we're sacrificing the short term to pay dividends in the long term. People are having short-term thinking--the platform is not even three years old. It was $599; it's now $399. The focus on pricing is something we appreciate, but you have to have the conviction and the confidence that you are on the right path for the long term and ultimately you'll get all the consumers you want. You won't get them all day one, but we're looking to get them over a 10-year period. It's going to take different things to get different consumers.

What do you think? Time for a price-cut or should Sony stay the course?

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