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Filing: PlayStation 3 Cost Sony $3.3 Billion In Losses (gamasutra.com)

Howard Stringer announces no Price drop for PS3 in 2008

XboxOZ360 | August 28, 2008 | News | Playstation 3 Wii

NOt just a news rehash: While it is news from Germany, this article discusses at length the various aspects of the announcement and how both Microsoft and Nintendo may fare from it.

Also covers older aspects of the early life of the PS2 compared to the PS3 in how they have followed a similar course to date. Also looking at the influence the Wii is having on a new gaming demographic, female gamers.

Well if MS ever need a better opportunity to strike, then now is the perfect time. A definite price drop by Christmas season could see many more 360’s just run right off the shelf than PS3’s this coming holiday season.

Howard Stringer, CEO of Sony said that there will be no price cuts on the PS3 atm as they are still well in the red with the PS3 and getting to a point of getting money back on the PS3, he jokingly commented “Not for as long as I live. It will certainly take some time.”

In fact, the PS3 has Sony in the red to the tune of $US3.3 billion as of its annual ‘08 fillings since its launch, a factor that was definitely pushed that way by the godfather of the Playstation Ken Kutaragi. It was he who single handedly went headlong into expending ever cent possible on the PS3’s development, even at the request (demand) of the CEO Howard Stringer himself.

With Kutaragi basically ignoring the CEO, and blatantly doing as he pleased. Which also include dropping the Retail Price of the smaller PS3 prior to its launch. Something that really ticked Howard Stringer off no end. As it was loosing money anyhow, let alone at an even lower retail price point.

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Images about this story:

93	(Another) 360 price drop confirmed! (7) September 1, 2008
57	Xbox360 UK Price-Drop Confirmed (5) September 16, 2008
74	Australian Xbox 360 accessory price drop official (4) August 31, 2008
56	Australian Xbox 360's to drop in price significantly as of 11th November (3) November 10, 2008
55	Steam announces weekend price cut (1) September 5, 2008

Comments

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Big A2 | August 31, 2008

Bad move. Heaps of people will only buy on after it's price drop.
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XboxOZ360 | September 01, 2008

True, but they can't drop it if they are in the red to the tune of $US3.3 billion, no matter HOW much fans cry out for it. If they did that just to appease fans/supporters, then they may well not be in business for too long. There was talk about 12 months ago from Howard Stringer that IF the section didn't start bringing in more (not profit, just more revenue) then he'd think seriously about dropping the whole section - Sony Games.