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ps3_small.jpgAnalysts, they know a thing or two about technology. So Sony
should take heed when these talented people tell them that the PS3
should drop in price to better compete with Microsoft’s Xbox 360 and
Nintendo’s Wii.

According to Electronic Entertainment Design and Research (EDAAR)
analyst Jesse Divnich, the PS3 is too costly for the mainstream market
and could shed a few dollars off the price, preferably before Christmas

Divnich said that Sony should "consider a possible hardware price cut
this holiday season." (maybe the analyst wants to buy one and balked at
the steep price!)

"We should note that if Microsoft’s first-party titles perform
significantly better in quality and popularity than Sony’s this holiday
season, we could begin to see a considerable amount of potential PS3
owners, who may be waiting for a PS3 price cut, to choose the Xbox 360
over the PS3."

Divnich said that Epic’s Gears of War 2 (exclusively on the Xbox 360) would be the biggest selling game in the run up to Xmas.

In
the US the Microsoft Xbox 360 Arcade console is now under $200, but the
PlayStation 3 costs $399 and Divnich said that this "is simply too
steep to entice the casual and mainstream markets, regardless of how
great Resistance 2 and LittleBigPlanet may be."

Divnich reckons that 320,000 Xbox 360s sold in September
in America while 215,000 PlayStation 3 units shifted in the same month. The analyst said that "if
September hardware sales fall below our estimate (under 200,000 units),
it could be an indication that the Xbox 360 price cut played a bigger
role on hindering PS3 sales than what we originally expected."

Sony hit back and said a price cut was off the cards for the present time.

"As previously discussed we aren’t making any price moves this holiday
season. In my opinion, we have the best line up of any PlayStation
generation going into this holiday and consumers will be very receptive
to it," said SCEA’s director of corporate communications Patrick Seybold.