Sony which is in a position to slash the price of its PS3 following the announcement that it can now produce Blu-ray video players more cheaply says that there will be no price cuts in Australia till at least the end of the year as the product is still selling well in stores.
The recent Blu-ray announcement sparked speculation the electronics company will cut prices of its PlayStation 3 video game console and other products that include the technology. In Australia the PS3 has a $400 premium over the US model.
Sony Computer Entertainment Australia and New Zealand Managing Director Michael Ephraim told Smarthouse News that he sees no reason to cut the price of the PS3 as it “Is selling well”. He has also admitted that Sony would rather sell less and deliver more margin.
“If the cost of Blu-ray is coming down, you can drop the price of anything with Blu-ray in it,” said Arvind Bhatia, an analyst with Sterne Agee & Leach.Sony said cheaper component costs and production “efficiencies” make it cheaper to manufacture Blu-ray, which is named for the blue-colored light used to read data stored on discs. The technology is being positioned as a better alternative to the popular DVD format.
Sony’s already announced one price cut based on its newfound Blu-ray chops. On Monday, a company representative said it will begin selling a new version of its Blu-ray video disc player later this week for $500, which is $100 less than what it previously said it would.
The next Sony product expected to have its price cut, say analysts interviewed Monday, is Sony’s PlayStation 3 gaming console, which comes with a Blu-ray video player
While Sony makes scores of different devices, its PS3 is among its highest profile product lines, and has become much more important to the company’s bottom line.
Any price cut is sure to boost PS3 sales, and sales of games designed for the console, Bhatia said.
According to NPD Group, at least 1.3 million PS3s have been sold. That’s nearly half of the total sales of Nintendo’s Wii consoles, and about a quarter of the 5.4 million Microsoft Corp.’s Xbox 360 consoles that have been sold.
At $1,000 for some models, the PS3 ranks as the most expensive of the best-selling devices. The hefty price tag has helped to throttle sales since its introduction last year.
