Analyst: PS3 price cut possible this year

Goldman Sachs analyst believes Sony may lower costs of the PS3 $100 worldwide this October; design simplification, cheaper chips could pave way.

One thing many industry watchers believe will have to happen for Sony to maintain its role as a juggernaut in the gaming business is a price cut for its PlayStation 3. Currently strapped with a tag of $499 for the 20GB model or $599 for the 60GB model, the PS3 has the distinction of being the most expensive console on the market.

Sony is making steps to bring down the cost of the system's production, and one analyst believes that a PS3 price cut could happen this year. Goldman Sachs analyst Yuji Fujimora believes Sony may cut the price of the PS3 by $100 this October, reports CNN Money.

Citing design simplification (Fujimora provides the example of the PlayStation 2 consisting of 2,000 parts at launch and only 600 parts in its latest incarnation) and cheaper microprocessor chips, Fujimora believes a price cut would not hurt Sony's strategy overall.

Microsoft released the Xbox 360 almost a full year ahead of the PS3 and has not yet cut the price of its console. Nintendo's Wii, which debuted shortly after the PS3, currently retails for $249.

486 Comments

  • jahoousa

    Posted Jun 6, 2007 4:48 pm PT

    You know I was dead set on getting a PS3 about a year ago..... And then I got impatient and bought an XBOX 360. There's going to have to be a change in the way Sony's running things for me to want to buy another $500 piece of equipment just for gaming....... Although the blu-ray player might just be a selling point for me.. I'm just disappointed in the state the gaming market is in right now.

  • UltimaCloudX

    Posted Jun 6, 2007 1:13 pm PT

    I would strongly consider buying a PS3 if it dropped the price $100 or more.

  • osxgp

    Posted Jun 5, 2007 11:47 pm PT

    Sony would be wise to drop the price of the P$3 considering that most of their top exclusives have jumped multiplatform.

  • devilscry

    Posted Jun 5, 2007 4:33 pm PT

    i want a PS3, but if they shaved off a franklin, i'd be inclined and able to do so sooner!

  • mekimaru99

    Posted Apr 14, 2007 3:50 pm PT

    i wont be buying a ps3 for more then £200... its not worth anymore... i used to like the ps's but the 3rd one has just took too long ...and come out wit h a stupid price. To me sony have really gone down hill,they could have been so much more....oh well.. i guess microsoft with the 360 is the leader now. infact i dont think the ps3 has a pos at all?

  • sneslover

    Posted Mar 30, 2007 11:46 am PT

    I hope Sony realizes this in time. If the launch isn't great then the flop grows like a snowball. They need to hurry.

    No console has good games right after its launch, Wii doesn't have it, DS and PSP didn't either so it's a matter of time until the games start coming out.

  • lildanny2121

    Posted Mar 30, 2007 10:31 am PT

    This wont affect me either but i do think it will easily put sony on TOP of the gaming industry almost immediately.

  • xElite_GameRx

    Posted Mar 30, 2007 6:10 am PT

    This won't affect me in anyway since I bought my PS3 at a discount. The same price as an xbox360 premium so I saved 200$ on my 60GB, which was NIB, PS3. Good news for sony though if it does happen.

  • AnFangs_Endes

    Posted Mar 29, 2007 7:55 pm PT

    meh; they should increase the possible price drop to like 150-200$, since they keep getting their 3rd-party games stolen by M$, like it does have better hardware like the RSX & SIXAXIS, but if they don't have enough consoles out there, their won't be enough exclusive games being made for it to be popular, kind of a double negative, less consoles sold=less exclusives, less exclusives=less consoles sold when compared to the other guys

  • el3fitness

    Posted Mar 29, 2007 7:23 pm PT

    IT NEEDS TO DO IT SOONER TO KEEP UP !

  • smbius

    Posted Mar 29, 2007 7:22 pm PT

    Going to buy it anyway, I don't want a lame duck PS3.

  • marijuana_man2

    Posted Mar 29, 2007 6:50 pm PT

    The price cut is definitely for the best, Sony is WAY behind in the console wars....

    Source: http://www.nexgenwars.com/

  • Kevdog1976

    Posted Mar 29, 2007 9:04 am PT

    Have patience young padowans, the PS3 will deliver! For all you haters out there, Microsoft's days of sorrow will begin soon!!! HAHAHA
    I have been nothing but impressed by the PS3 since It came out! Long Live Sony!!!

  • AceCometh

    Posted Mar 29, 2007 8:57 am PT

    It's a step in the right direction, but there's still a problem of not having very many games....

  • blem16

    Posted Mar 29, 2007 6:31 am PT

    hopefully this will happen

  • Kreean

    Posted Mar 29, 2007 6:26 am PT

    Yes I think too that a price cut will happen but not in October.
    It will be December...
    I'm getting one this December, price cut or not.

  • Kenshin836

    Posted Mar 29, 2007 2:44 am PT

    DO IT! If they do, I'd be sure to get one.

  • gatsbythepig

    Posted Mar 28, 2007 1:14 pm PT

    If they do, I'll buy one

  • dekomania

    Posted Mar 28, 2007 9:32 am PT

    Phatjam98 Ok gamers and morons.... Who cares if the price drops 100-200 bucks. The game library dosn't justify 400-500 bucks just for the system. RFOM is a nice looking and fun game. I would never pay, currently 660+ bucks for a system and one game. There has never been one single game worth that kind of money. However the 360 has Oblivion(and now the expansion a day earlier than pc), Lost Planet, Gears of War, Advanced warfighter, etc... I have at least 10 games that are not only fun and reactive but games that the PS3 will have out in a few months.... Wait a few months for games that have been out on 360 for a year or more? And you idiots want to spend 600 bucks... sorry 500 bucks on a device that has one good game. And on the real side, All games PS3 gets that you cant live without.... ARE COMMING TO THE 360 AND USUALLY THE SAME DAY AS THE PS3!

    Also to address the comments that PS3 can play next gen dvd's right out the box and 360 requires a 200 dollar add on drive. THIS ONLY MATTERS IF YOU HAVE A LARGE SCREEN HD TV!!!!!!! My brother and most friends are not lucky enough to have HD, SO WHY INCLUDE SUCH EXPENSIVE HARDWARE FOR THE SELECT FEW! I have since got my HD-DVD drive and not only does it work on my 360 like a dream, I can use it on my PC! Oh and with a simple firmware upgrade we also have 1080p.

    So, let me ask. What logical reason does anyone have to get a PS3 for gamming? Not watching movies or surfing the net(both of wich have been around for years before the PS3) but playing games.

    You forgot Motorstorm. VF5, GRAW2, Oblivion IV. Your comment about games form PS3 coming to X360. The same thing will happen over so thats no argument. I will be the exclusives that make ik worth wile bying it. Wait and see.

  • AceCometh

    Posted Mar 27, 2007 6:07 pm PT

    So much for blu-ray.

  • Pfilosophy

    Posted Mar 27, 2007 5:09 pm PT

    ALEX4, GOOD JOB ON THE CLASSY ALL CAPS COMMENT! The fact of the matter is this: if Sony made the Blu-Ray optional like the 360 has an optional HD-DVD drive, there'd be no price argument. A $100 drop makes the PS3 seem a lot sweeter and, yet, I still ain't biting. It's not losing exclusives because companies feel bad for us - it's because it's a waste of time and money to spend energy on that thing. Wake me up when the next Vib Ripple comes out or something.

  • MogFromLeipzig

    Posted Mar 27, 2007 1:45 pm PT

    yet another reason to wait.. but I didn't want to wait that long actually

    btw: the 360 currently sells for 299 euro (100 euro less than on launch) in germany (and probably in other countries, too)

  • Alex4

    Posted Mar 27, 2007 1:04 pm PT

    PhatJam98 said_"Also to address the comments that PS3 can play next gen dvd's right out the box and 360 requires a 200 dollar add on drive. THIS ONLY MATTERS IF YOU HAVE A LARGE SCREEN HD TV!!!!!!! My brother and most friends are not lucky enough to have HD, SO WHY INCLUDE SUCH EXPENSIVE HARDWARE FOR THE SELECT FEW! I have since got my HD-DVD drive and not only does it work on my 360 like a dream, I can use it on my PC! Oh and with a simple firmware upgrade we also have 1080p."

    First of all, why even get a high definition gaming system if you can't see it in high definition. Vizio 32" HD LCD TVs are $599, and Olevia 27" HD LCDs are even cheaper. Use a credit card, 3 months same as cash, Bada bing , Bada boom!
    .... and to address your question: "What logical reason does anyone have to get a PS3 for gaming?' It's called an investment for the long run. Picture this: A guy has an HDTV set. All of a sudden he notices that DVDs look like crap compared to the HD broadcasts ( and I mean the free ones you get with ATSC tuning, remember HDTV content can be acquired with a cheap terrestrial antenna). He suddenly buys an HD gaming system. He is tired of the PS2 being the graphically inferior one for 61/2 years and at the same time he wants to see the movies that he buys in 1080i and 720p (not 480p). PICTURE THIS SCENARIO AND APPLY IT, THEN YOU'LL UNDERSTAND THE REASON BEHIND THE PS3 INVESTMENT.

  • Alex4

    Posted Mar 27, 2007 12:41 pm PT

    I am so frigging sick and tired of people complaining about the price of the PS3!!!
    Please correct me if I'm wrong: XBox360 Premium (the one with 20GB HDD) is $399; the average WiFi gaming adapter-> $99; the HD-DVD player add-on -->$199. Some facts to consider before adding up the total: XBox 360 premium does not have a completely free online system like that of the PS3 (i.e. XBox Live Gold or whatever). The 60 & 20GB PS3, on the contrary, both have free online service and can play Blu-ray content. In the states, the 60GB PS3 is $599!! Now let's add it up: 399+199+99 does not = $599. IF ANYONE OUT THERE FINDS THAT IT DOES LET ME KNOW!!! Please give me a holler mathmaticians.

  • Phatjam98

    Posted Mar 27, 2007 12:11 pm PT

    Ok gamers and morons.... Who cares if the price drops 100-200 bucks. The game library dosn't justify 400-500 bucks just for the system. RFOM is a nice looking and fun game. I would never pay, currently 660+ bucks for a system and one game. There has never been one single game worth that kind of money. However the 360 has Oblivion(and now the expansion a day earlier than pc), Lost Planet, Gears of War, Advanced warfighter, etc... I have at least 10 games that are not only fun and reactive but games that the PS3 will have out in a few months.... Wait a few months for games that have been out on 360 for a year or more? And you idiots want to spend 600 bucks... sorry 500 bucks on a device that has one good game. And on the real side, All games PS3 gets that you cant live without.... ARE COMMING TO THE 360 AND USUALLY THE SAME DAY AS THE PS3!

    Also to address the comments that PS3 can play next gen dvd's right out the box and 360 requires a 200 dollar add on drive. THIS ONLY MATTERS IF YOU HAVE A LARGE SCREEN HD TV!!!!!!! My brother and most friends are not lucky enough to have HD, SO WHY INCLUDE SUCH EXPENSIVE HARDWARE FOR THE SELECT FEW! I have since got my HD-DVD drive and not only does it work on my 360 like a dream, I can use it on my PC! Oh and with a simple firmware upgrade we also have 1080p.

    So, let me ask. What logical reason does anyone have to get a PS3 for gamming? Not watching movies or surfing the net(both of wich have been around for years before the PS3) but playing games.

  • AceCometh

    Posted Mar 27, 2007 12:09 pm PT

    Too little, too late.

  • edmakel

    Posted Mar 27, 2007 11:32 am PT

    judge__judy Games! Where are the games

    Posted Mar 26, 2007 2:41 am PT (select an action below) ______________ Report Abuse To Moderator My thoughts exactly!!!!!! whatever about the price of the system....they've got like....what..... 9 games out???? Still not buying until I can use it for something other than a brick paperweight.......

  • 01casey

    Posted Mar 27, 2007 9:44 am PT

    Gah, you people in the US should be satisfied with a $499 price tag - we pay the equivalent to $835 here in the UK!

    It's rip-off Britain I tll ya, $550 for an Xbox 360 Premium and $350 for a bloody Wii!

  • Demon_Vergil

    Posted Mar 27, 2007 7:01 am PT

    Man I really hope they drop the price, that way I'll only have to pay €499,-

    ...

    What?

  • carlogz

    Posted Mar 27, 2007 6:57 am PT

    They have to do a price drop..not might...should!!! This could boost the PS3.

  • daveg1

    Posted Mar 27, 2007 2:37 am PT

    a price cut would probably make the ps3 no1 console easy.and its not caise its the best either its the name...people dont even know what there buying these days.

  • sadass

    Posted Mar 27, 2007 2:25 am PT

    Well, I hope I get one, because my Bday is all the way in November. *Fingers Crossed* I hope that they cut the price by $100 because I'm a cheapskate

  • g_max_

    Posted Mar 26, 2007 11:24 pm PT

    Passions are clearly going to run deep on this - price *is* a big deal. While this would be a move in the right direction I'm still not sure it will be enough... And if the only way they can get there is to gut the machine like they did the EU version (or even worse, somehow), I just don't know if the price will be right...

    One thing's sure - the financial analysts aren't going to ignore the PS3s sitting on the shelves gathering dust...

  • sean0128

    Posted Mar 26, 2007 10:13 pm PT

    to add to list of add ons to the 360 that lhardwick692 made, you also have to consider that the 60 gb version can connect to internet wireless. you have to pay 100 bucks for that on the 360

  • Screamteam411

    Posted Mar 26, 2007 9:55 pm PT

    People can't get mad that Sony is going to cut the price possibly... It's a good thing guys... it happens eventually with everything. It's the price you pay for having something during its launch.

  • sanchez-74

    Posted Mar 26, 2007 4:58 pm PT

    You have to be kidding me i'd happily pay $600 for it except in the UK it costs $838 without any games $1083 with 2 games grrr
    I payed $688 for a xbox 360 with 4 games and 2 pads not horrendous, bleh i might just move country would be a hell of a lot cheaper
    All price were at the current rate of exchange from £ - $

  • Col-Neil

    Posted Mar 26, 2007 3:08 pm PT

    If they want to start seeing more intrest they better work on ways to reduce the price we dont all have £400 + just dossing around you know

  • plumjoose

    Posted Mar 26, 2007 11:29 am PT

    Sony is in a catch 22. It was too early to implement the Blu-Ray format, yet it was necessary for future games. Oh well lol. I love Sony, just, I'm used to the controller, the whole playstation theme. I'm still a fan. I own an XBOX 360, and even 400 bucks was a stretch. Anyway, once Sony gets the price down they will be fine. Price is a big deal.

  • ahyumifan

    Posted Mar 26, 2007 11:22 am PT

    If they cut the price up to 200$, (to match the XBOX 360 Premium), I will consider buying it, but even then PS3 should have some good games or i will just stick with XBOX 360.

  • hooperalltheway

    Posted Mar 26, 2007 10:51 am PT

    u have to be kidding me i just spent 600 on this and now this im done with sony even tho this is a powerful machine sony is drivin me crazy

  • markd751

    Posted Mar 26, 2007 10:28 am PT

    you know what? that's a good idea, but knowing Sony, they're probably gonna be arrogant about it and pull out their "we don't need to cut the price! Everybody wants the PS3, they are sold out everywhere!!" BS

  • war3

    Posted Mar 26, 2007 8:48 am PT

    this will make it a bargain!

  • ObiKKa

    Posted Mar 26, 2007 6:26 am PT

    Mmm, interesting... I think that it may not happen this year. So if not then it would definitely come upon in 2008 or 2009, especially considering that some analyst(s) beforehand have said that Sony could only be able to drop the price of the PS3 down by 2009. But, maybe this is only really for the PS3s outside NA, & Japan, as they've omitted the PS2's Emotion Engine chip in the PS3s in these particular regions (including Australia, where I live).

    US$100 would be AU $125 (or more dreamily $150) here, but that is a bit too optimistic on the analysts' part. The only maximum price that I would feel comfortable with about the PS3's value would be $800 or $700, but that will be an incredibly long time to wait for then...

  • rety5

    Posted Mar 26, 2007 6:02 am PT

    Finnaly I can stop slagging off the ps3!

  • BajenVaNamnet

    Posted Mar 26, 2007 5:30 am PT

    Wonderful!=)

  • judge__judy

    Posted Mar 26, 2007 2:41 am PT

    Games! Where are the games

  • LuvofGames1134

    Posted Mar 25, 2007 11:04 pm PT

    IF this acutally happens then its going to be really hard for me to decide which system to get.The 360 has more games and better gameplay for now, but the PS3 has free internet to play and some(notice that I used some) good games. I just got my PS2 hooked up on the internet cause i got bored and its just plain fun! But xbox....well u need to pay to play....and now if they acuttaly do a price drop it might make me decide to get the PS3 but i'll have to wait and see whats coming up for the system.I really hope this price drop will happen.

  • ZelvarR

    Posted Mar 25, 2007 8:49 pm PT

    I'd be happy with a cut of 50 dollars off both prices. That'd be enough to convince me to go for it.

    That, and some good games for the system...But I'd rather have it 50 bucks cheaper and just wait for the games, since I can still play my ps2 games when I get bored of the bad ps3 games

  • fox3586

    Posted Mar 25, 2007 7:02 pm PT

    They better, the PS3 is drowning and dragging Sony down with it (sorry, I just watched The Guardian... maybe the PS3 is Sony's wife?)

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