Sony PS3 Sales May Surge After Price Cut - InformationWeek
Government // Mobile & Wireless
05:55 PM

Sony PS3 Sales May Surge After Price Cut

NPD Group says it expects sales to increase 40-60%, following a price cut to $299 that will attract "the next segment of price-conscious consumers."

Sony's decision to slash the price of the PlayStation 3 will likely boost unit sales at U.S. retailers by as much as 60% in September, a research firm said Thursday.

The $100 price cut announced Tuesday in conjunction with Sony's release of a slimmer, more power-efficient version of the PS3 is exactly what was needed to reinvigorate the platform, which has lagged in unit sales behind Nintendo's Wii and Microsoft's Xbox 360, The NPD Group said.

"The $299 price point is important to getting to a point where the next segment of price-conscious consumers can jump into the market and it most certainly will re-energize sales of the platform," NPD analyst Anita Frazier told InformationWeek in an interview via e-mail. "We would expect to see in the range of a 40% to 60% unit sales increase when September sales are reported."

However, price cuts alone may not significantly narrow the sales gap between the PS3 and rivals. Another important factor will be whether a new, hot video game is also released.

"Content is still the key motivator of a hardware purchase decision," Frazier said. "Other systems might too take a price cut, so there's a lot playing into which system tops sales any particular month."

Sony dropped the price of the PS3 with an 80 GB hard drive to $300 and the model with a 160 GB hard drive to $400. The new PS 3 Slim, which is scheduled for release Sept. 1 with a 120 GB hard drive, will also cost $300.

The new price matches the Xbox 360's, but is $50 higher than the Wii. However, the higher prices for the XBox and PS3 are reflections of those two products being more powerful systems for serious gamers. In targeting the Wii at more casual gamers, Nintendo has outsold Microsoft and Sony in terms of unit sales.

Industry analysts have said for some tim that Sony needed to drop prices. The company in July reported that unit sales of the PS 3 fell more than 31% in the quarter ended June 30, compared to the same period a year ago.

The U.S. video-game industry as a whole has suffered during the economic recession. In July, the industry reported its fifth consecutive month of declining sales, according to NPD Group. Console sales overall fell 37% in July from the same month a year ago.

InformationWeek has published an in-depth report on Google's upcoming Chrome OS. Download the report here (registration required).

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll