Posted on June 19, 2007, Jonathan Price Cut to Hurt PS3 Sales in the Long Run?
There’s an interesting article up on the Sony Protection Group’s website about how a price cut for the PS3 may not actually help sales of the system. In the article, they analyze the sales of the PSP before and after its own price cut. While the price cut did boost sales of the handheld temporarily, it seems the following weeks showed a sharp decline:
“All the spike has done is shift some sales sooner but REAL extra sales are non evident. Now, we will NEVER know if the price cut will extend the length of time Sony can keep selling the PSP but we can see that it was a very temporary spike. All that a price cut does is satiate the demand from those that are price concious [sic]. It does not, by itself, create demand.”
While I see their point, I think comparing the PSP and the PS3 — as many seem apt to do — is kind of a stretch. For one thing, the home console market and the handheld market are very different. For another, the PSP really lacks the games to sell a system; a problem the PS3 may remedy by winter. Sony’s been promoting the hardware strength of it’s console since before its launch, with few positive results; so I don’t think that’s the problem. The release of a number of new games may ramp up the value of the system, but a price cut will also garner the important “impulse buyers.”
Also, and I say this as a proud Wii owner, Nintendo seems to be setting itself up to be de-throned as the reigning console champion. They only have a handful of worthwhile games coming out this year, compared to the plethora of exclusives the PS3 has planned. If there was a time to get the jump on them, I’d say it’d be now.