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PS3 still profitable after price cut

Can the Blu-ray-playing, Cell-equipped console really be sold at its lower price without incurring a loss for Sony? The answer is "yes."

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Quite possibly the biggest news out of Gamescom yesterday was Sony's abrupt announcement of a global PS3 price drop. The cheapest model is now $249, a $50 drop from $299. The system, which originally launched at $599 nearly five years ago, was a notorious loss-leader for the Japanese hardware manufacturer. Can the Blu-ray-playing, Cell-equipped console really be sold at that price without incurring a loss? The answer is "yes."

"It is still profitable," SCEA's John Koller said. "We're not going into the red."

"We've had this price drop in mind for over a year," Koller told IGN. Since then, Nintendo has been losing traction with the Wii, while Microsoft has been nearly unstoppable due to the popularity of its Kinect peripheral. Koller says that the price drop will encourage many to look at PS3 as a potential "second system."

"There's a significant number of Xbox 360 and Wii owners who would like that second console and want to have the opportunity to play these exclusive games and content experiences, and this new price point allows them to do that," Koller said. "There's a real opportunity for those consumers to be able to play, what we view, are the best games in the industry on the PS3 this fall.

Andrew Yoon was previously a games journalist creating content at Shacknews.

From The Chatty
  • reply
    August 17, 2011 10:30 AM

    Andrew Yoon posted a new article, PS3 still profitable after price cut.

    Can the Blu-ray-playing, Cell-equipped console really be sold at its lower price without incurring a loss for Sony? The answer is "yes."

    • reply
      August 17, 2011 11:27 AM

      glad I held off on buying earlier

    • reply
      August 17, 2011 1:28 PM

      im sure Sony will sell a ton of Ps3's at $250. i bought my 60gb fatboy for $450 in 2007. only problem for me is i dont find a lot of the Sony exclusives a must play. :/ UC yes, almost everything else is meh to me.

      • reply
        August 17, 2011 6:00 PM

        Just bought one today, Last one on the shelf at my local Best Buy. I heard rumors of price drop months ago, so I was waiting for this and others probably were too.

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          August 17, 2011 6:01 PM

          congrats, one of the best purchases you'll make all year

          • reply
            August 17, 2011 6:10 PM

            Agreed, the longer we go in this hardware cycle, the more i am turning to my PS3 rather than my XBox. Although, I still think XBox Live blows the shit out of the PS3 Network.

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