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Chubachi denies plans for PS3 price cut

6 July 2007 5:21 by Rich "vurbal" Fiscus | 19 comments

Sony Corp. has no plans to cut the price of its PlayStation 3 (PS3) at present to pep up demand and counter surging sales of Nintendo's rival game console Wii, Sony's president said on Friday. Sony President Ryoji Chubachi also said in an interview that operating profit margin at its mainstay electronics unit, which makes hot-selling Bravia LCD televisions and Cyber-shot digital cameras, was likely to exceed its 4 percent target for the current year to March 2008.

The higher price tag and lack of attractive software titles have been cited as main reasons the PS3 has been trailing the Wii in sales, and analysts have been widely expecting Sony to soon slash the price to spur on demand.

"If you take a look at how PlayStation and PlayStation 2 have taken off, this is not such an unusual start," Chubachi said. Chubachi said the company was on Track to hit its target of a 5 percent operating profit margin for the year to March 2008, and its electronics division will likely exceed the 4 percent target.

The margin targets, set in 2005, have been considered as the most visible indicator of success for turnaround efforts by Chief Executive Howard Stringer and Chubachi.

In a sign of lack of confidence on the side of investors, however, Sony, which has sales eight times as big as Nintendo, was overtaken by the Kyoto-based company last week in market capitalization and bumped off the list of Japan's 10 most valuable companies.

Source: Reuters

Permalink to this article

PS3 price cuts only temporary (13 July 2007)

Sony drops PS3 price by $100 in United States, Europe next? (8 July 2007)

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Discuss this article!
tuure2 (Member) 6 July 2007 5:27
Bullshit. Sony will announce price drop at E3. [ + quote]
khloud (Member) 6 July 2007 5:31
They'd better, I'm hoping either they do, or they don't and have a bunch of financial troubles then hopefully that will force them to. Hopefully. [ + quote]
hughjars (Inactive) 6 July 2007 6:49
S'funny, all this fuss over a �50/$100 price drop. I seriously doubt it's anything even remotely like enough. [ + quote]
vinny13 (Inactive) 6 July 2007 8:32
I'm still going to get one, but a little less money wouldn't hurt. They have to drop for Christmas. If they don't, some poor kid is going to be stuck with a 360(not the Wii because it will be sold out). That little guy is gonna burn his tiny hands off lol [ + quote]
thegrunt (Senior Member) 6 July 2007 9:10
Who cares,with a very few selection of games why would you want to buy this??? I guess to collect dust,those things like to get dirty:P [ + quote] This message has been edited since posting. Last time this message was edited on 6 July 2007 9:10
mark0416 (Newbie) 6 July 2007 9:34
I'm hoping Sony will make the price drop happen at E3. I'll be damned if I'm going to pay $600 for a video game system, Blu-ray player or not. [ + quote]
chozn2004 (Newbie) 6 July 2007 9:35
07 / 05 / 2007 - Thursday Spoofee Deals! Circuit City - Sony PS3 60GB System for $499.99 Starting 7/15 Good Deal Circuit City will have the Playstation 3 60GB system for $499.99 + Tax starting 07/15. This may be a permanent price drop - Link to Scan [ + quote]
vinny13 (Inactive) 6 July 2007 10:19
Originally posted by chozn2004: 07 / 05 / 2007 - Thursday Spoofee Deals! Circuit City - Sony PS3 60GB System for $499.99 Starting 7/15 Good Deal Circuit City will have the Playstation 3 60GB system for $499.99 + Tax starting 07/15. This may be a permanent price drop - Link to Scan It's probably not permanent, but there's always specials for it. EB Games had "Trade in 10(qualifing) games and get a new 60GB PS3 for $400.00(CAD)" and then a few weeks later "Trade in 10(qualifing) games and get a used 60GB PS3 for $350.00(CAD)". What they would do is they would boot up each qualifing game to $22.50 or something and then depending on how many games you had that qualified you would get that much of a discount. If your buying a PS3, all you have to do is be on the look out. [ + quote]
rihgt682 (Senior Member) 6 July 2007 13:06
I was hoping they did so microsoft can drop they're price also. [ + quote]
DoomLight (Newbie) 6 July 2007 13:13
PS3 needs a price cut. it will never truly take off like PS2 did. despite the xbox rather crappy reliability. people seem to be buying it still. [ + quote]
samshizze (Junior Member) 6 July 2007 13:24
They targeted adult gamers, unlike Wii where kids and adults are drawn to it. Nobody is gonna buy their kid a $600 system unless they are a doctor or something. I look forward to owning a PS3 but not quite yet. Again, would LOVE to see a GTA IV package for $600. Cant see spending that much and then having to buy a $60 game on top of it, and a HDMI cable. [ + quote]
DXR88 (Senior Member) 6 July 2007 14:28
Will Just have to wait and see [ + quote]
DVDBack23 (Staff Member) 6 July 2007 14:40
http://www.afterdawn.com/news/archive/10292.cfm [ + quote]
jsms928 (Newbie) 7 July 2007 6:29
Um, $100.00 price drop this Sunday. Guarantee. [ + quote]
jsms928 (Newbie) 7 July 2007 6:33
Um $100.00 next Sunday, sorry, the 15th. [ + quote]
diableria (Inactive) 7 July 2007 6:51
what kind of a retard would buy a ps3 anyways, maybe 2 years from now when price has been cut and there will be some decent games. right now its a waste of money [ + quote]
vurbal (Staff Member) 7 July 2007 10:10
Originally posted by DVDBack23: http://www.afterdawn.com/news/archive/10292.cfm Don't you love how they can't stand to actually come out and say "we were stupid and the price is coming down" instead of "we're refining the price" and "no we're not going to lower the price." What's it really going to hurt to tell the truth? Do they really think sales will suck any more than they do now? [ + quote]
borhan9 (AfterDawn Addict) 9 July 2007 20:24
I really doubt that Sony will drop prices. Due to the fact that this is like one of the handful of articles that have been posted about this and it has not happened yet. [ + quote]
vurbal (Staff Member) 10 July 2007 3:47
Originally posted by borhan9: I really doubt that Sony will drop prices. Due to the fact that this is like one of the handful of articles that have been posted about this and it has not happened yet. Actually it has. http://www.afterdawn.com/news/archive/10326.cfm [ + quote]