Playstation 3 set for more price cuts
There’s some good news, of sorts, for Sony. Its profits for October-December of last year were down 5 percent from the same period in 2005 – which doesn’t sound great, but many analysts were predicting a much steeper drop.
The decline was almost entirely due to Sony’s games division, which lost $445 million, mostly on the PlayStation 3’s startup costs. Still, Sony executives think the PS3 will break even in the next fiscal year, which began in April - and part of the company’s strategy may be an early price cut for the new console.
“We may look at the price as part of our strategy to expand the market when the timing is right,” Senior Vice President Takao Yuhara told reporters in Tokyo. “Such factors, including price cuts to some extent, are factored in” under the plan to break even in fiscal 2007.
Of course, every console gets less expensive over its lifetime; the surprise is that Sony’s thinking about it less than four months after the PS3’s launch.
