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Friday, October 06, 2006

Sony Getting Desperate (SNE)

By William Trent, CFA of Stock Market Beat

Has it launched yet? No.

Has its price been cut? Yes.

Will Sony lose even more money? Yes.

Sony to Slash PS3 Price in Japan:
Sony said it would reduce the selling price of its basic, Blu-ray-equipped PlayStation 3 to 47,600 yen, (some US$420 or so, which is nearly US$100 less than the previously stated price).The price reduction is an obvious strategic reaction to the market price of the Xbox 360 combined with its optional HD-DVD player, which is slated to sell in the domestic Japanese market for US$427.

Sony has stated that it isn’t changing the pricing on the PlayStation 3 in America (or other foreign markets, for that matter): the introductory price on November 11 on this side of the pond remains set at US$499 (for the 20GB version, and US$599 for the 60GB-equipped step-up piece).

The only question left unanswered is whether Sony will be able to shove Blu-ray down consumer’s throats at all.

The author may hold a position in the securities discussed. A current list of the author's holdings is available here.

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