Wall Street sees a PS3 price drop approaching

Have you ever thought of buying a PS3, but didn’t because of the high $599 price tag? There may be some good news in store for you as some Wall Street analysts believe that a price drop may soon be in order, due to the blue laser diode component of the Blu ray player costing less to manufacture.

How much of a discount could Sony offer? This all depends on whether it wants to break even with each sale of the PS3 or pass along the savings to consumers in order to generate more sales. Michael Pachter of Wedbush Morgan Securities said, "I’d guess that Sony could squeeze a hundred dollars out of [the PS3’s] cost by mid-year, maybe more."

If the prediction for a lower price tag for the PlayStation 3 comes to fruition, that would likely mean a price point anywhere from $450 to $499. That would place the PS3 only a stone’s throw away, in pricing, from the newest member of the 360 family, the Xbox Elite, which retails for $479.99.

And suddenly, the PS3 might look more affordable and value packed than before.

Pachter concluded, "My guess is that you will see a price cut this year.

"I think that the introduction of the Xbox 360 Elite gives Sony an opportunity to cut price and claim that they offer Blu-ray for only $20 more. Again, God knows if they will do this, but I’d say it’s far more likely given the rapid decline in [cost of] Blu-ray laser diodes."

[via GameDaily BIZ]


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Author: GamerNode Staff View all posts by

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