Cable Spies

He sort of the 'Steve Jobs' of Sony

Many of us were expecting more price cuts for the Sony Playstation 3. But unfortunately, Sony Corp. Chairman and CEO Howard Stringer has stated in an interview that Sony Playstation 3 price cuts are unlikely before this Christmas season. The Playstation 3 console’s lifetime-to-date sales still trail that of the Nintendo Wii and the Microsoft Xbox 360. Stringer was noted saying that Sony has been unable to reduce the production costs to a break-even level. Since the production cost of a Playstation 3 is high, the price are more likely to remain the same in order for Sony to make a profit. Stringer stated the following regarding the production costs and profit margins:

Not for as long as I live (laughs). It will certainly take some time. The traditional business model for the Playstation envisaged us making a loss with the hardware in the early years until the production costs had decreased to a point that enabled us to break even. In the meantime, we earn money with the games. We are currently at the stage in which we need to get a grip on the production costs. That takes time. We are already making more money with the games than we are losing with the hardware.

This may be bad news for some, but with the new line up of games that will be arriving for the Playstation 3, some should consider this a necessity. But again, when the consumer reaches the cash register, the consumer must be willing to dish out the necessary funds for a lifetime of great computer entertainment.

- Geoff

[Source: WeltOnline]