Japanese analysts want PS3 price cut

Analysts in Japan still predict Sony will give PS3 a price cut this year, even though the firm may be about to reveal encouraging profit forecasts.

"We think Sony will find it hard to get through the financial year (which began this month) without cutting the price of the console, and expect further game segment losses of over $1 billion during that period," said researchers from investment firm, Nomura, who's researchers still expect the PS3 losses to continue for the short term.

In the report Nomura estimates that Sony has sold only half of the six million PS3s it has manufactured to date. "In the six months the PS3s was on sale up to March 31 (though for only one month in Europe) it sold 3 million units. To boost that substantially in the fiscal year without lowering prices would in our view need major software hits.

"We do not see the necessary drawing power in the title pipeline at this point," said analyst Eiichi Katayama. "We expect Sony to take measures to increase market penetration of PS3 hardware, including extending the software line-up, and expect to review our medium-term estimates for the game segment if and when such measures come into view."

Clearly, it's all about the games then. "We think losses in the game segment are temporary and expect its earnings to improve," Nomura's analysts added. "That said, we think the extent of profit growth in the segment will hinge on how well the PlayStation3 sells at the expected price and the launch of titles for it."

April 16, 2007

Latest in PlayStation
Assassin's Creed Shadows Wanted Status
How to remove Wanted status in Assassin's Creed Shadows
Monster Hunter Wilds screenshot showing a hunter battling a congalala
If you missed the last one, the new Monster Hunter Wilds event quest is another way to stock up on rare ingredients before the big update drops next week
Naoe kills a target with a black and white filter over the camera highlighting the red of blood spray in Assassin's Creed Shadows, with an On The Radar orange frame
Assassin's Creed Shadows "has a little bit of Tarantino flavor", but its real secret ingredient is intrigue: "It's almost like you're watching an episode of Shogun"
God of War
20 years later, God of War's original monster art has been revealed: behold this army of stick figures slapped on a whiteboard, no clue Kratos is coming for them
Assassin's Creed Shadows Naoe facing off against samurai warrior on red bridge
An Assassin's Creed Shadows fan is showing off some of the RPG's most impressive little details, and it's done more to get me interested than Ubisoft ever did
Assassin's Creed Shadows Yaya shouting at Tetsuo
How to recruit Yaya in Assassin's Creed Shadows
Latest in News
Chris Hemsworth's name on the back of a director's chair
Marvel's Avengers: Doomsday cast reveal live blog
Screenshots from the Alien Evolved Edition TRPG teaser trailer
Alien Evolved Edition TRPG just burst through the million dollar crowdfunding mark with the vigor of a face-hugger on steroids
Halloween director John Carpenter
15 years on from his last horror movie, Halloween's John Carpenter says he'd "love to direct again" – but he has one condition
Monster Hunter Wilds screenshot showing a hunter battling a congalala
If you missed the last one, the new Monster Hunter Wilds event quest is another way to stock up on rare ingredients before the big update drops next week
The cast of Suicide Squad (2016)
David Ayer admits James Gunn has good reason not to release his cut of Suicide Squad, but he remains hopeful it'll happen
Ezra Bridger in Ahsoka
A Star Wars actor just quietly confirmed that filming has begun on Ahsoka season 2