Demands for a PS3 Price Cut HarmfulThere have been many news reports and blog postings over the last couple of months demanding price cuts for the PS3. To start with, it was 'financial experts' (yeah, I have faith in those!) who said Sony must drop the price of the PS3. Then it was journalists, gamers and bloggers who said they should drop the price of the PS3. Now its developers who are saying the price should drop so they can sell more games. The last one is fare enough I suppose - developers should make more money from PS3 games which would lead to more PS3 exclusives, more games where the PS3 is the lead platform, and more PS3 titles. That's good for all of us.
The problem is that Sony think the PS3 is already good value for money. I tend to agree with them. If you put together any other machine, whether it be an Xbox 360 or a PC, to do the same things which the PS3 can do it would cost a lot more. The power and functionality of the PS3 is incredible value for money. We would all like something for nothing but you have to draw a line somewhere. So much coverage and speculation saying Sony have to drop the price soon will harm sales. People reading these reports will hold off buying a PS3 as they think the price is going to drop soon.
I don't think Sony will be pressured into dropping the price of the PS3. They don't want to lose money on the hardware and will drop the price when the production costs and sales figures say its viable to do so. If they are forced into a price drop then other cost cutting measures may have to be taken which could slow down firmware development, shrink advertising budgets etc.
Of course, when a price cut does happen, all of the Web sites and so called 'experts' will claim they had a part in it.