The big season for picking up sales, and market share, in the video game console business is the holidays. Shoppers are out buying the things for themselves and their kids. But, this is a recession holiday and that means that selling any consumer electronics device will be hard.
Shoppers are looking for discounts. Sony (NYSE:SNE) has decided to play the fool and not lower prices on its PS3. It is hard to understand why they would make such a significant mistake. It gives Nintendo and Microsoft (NASDAQ:MSFT) the chance to take the lion's share of the customers.
According to the FT, "Sony, the Japanese consumer electronics group, has ruled out cutting the price of the PlayStation 3 console before Christmas, insisting that the PS3 is better value than rivals half its price." Since the Nintedo Wii has outsold the PS3 almost every month since Sony hit the market with its new product, it is hard to see why that would change.
Sony's game business has undermined the company's earnings for several years. It was late to market with the PS3, and now it is likely to be overwhelmed in the fourth quarter by its competition.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
10-13-2008 @ 10:53AM
andyg8180 said...
Considering the rumors of sub-200 Samsung blu ray players for Black Friday, and sub-300 players coming for the xmas season, that statement Sony made isnt going to hold much merit...
Take into the fact that you can buy a 360 with triple the catalog and bargain bin games, and then head out and buy a quality Blu-Ray player that you can control with your harmony remote and not the PS3 controller, the PS3 wont fair too well...
10-13-2008 @ 11:08AM
hank said...
Thats why the PS3 will never rear it's head in my household because they are just stupid greedy people that can burn at the gates of hell!!! Ha HAHAHAHAHAHAHAHAHAHAHA!!!!