Tue, Oct 07, 2008 | 20:55 BST
Divnich: PS3 is “simply too steep” at $399
In a just-published research note, EEDAR analyst Jesse Divnich has warned that PS3′s $399 price tag is likely to drive consumers into Microsoft’s open arms this Christmas, and has urged Sony to consider a pre-holiday drop for the machine.
“While we have no doubts that titles like Resistance 2 and LittleBigPlanet will drive the core gaming market to purchase a PS3, we do, however, have doubts that either title will lure in casual and mainstream gamers,” he said.
“The $399 price point is simply too steep to entice the casual and mainstream markets, regardless of how great Resistance 2 and LittleBigPlanet may be.”
He added, speaking of EEDAR’s predicted post-cut boost to 360 sales in September: “The surge in Xbox 360 sales likely came from the mainstream and casual markets who were enticed by a sub-$200 Xbox 360 SKU. 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
“Currently, we expect Gears of War 2 to be the single best selling SKU this holiday season.”
And the note of doom:
“We still urge Sony to consider a possible hardware price cut this holiday season. 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.”
14 comments
#1
morriss
07/10/08, 8:28 pm
I don’t get that last paragraph. Why do they care?
#2
patlike
07/10/08, 8:33 pm
Just want to see accelerated sales, I guess. They’re investment analysts, innit. And they’re right: it’s going to be a green Christmas if Sony doesn’t start getting more aggressive quickly.
#3
Syrok
07/10/08, 8:39 pm
Now, $400 in Europe and the thing would fly off the shelves
…for a week or two
#4
patlike
07/10/08, 8:43 pm
I don’t reckon they’ll drop. Getting late in the day now and they’ve said categorically that they won’t.
#5
scuz
07/10/08, 8:51 pm
i think they’re quite right to stand ground for a bit
#6
desiredtime
07/10/08, 8:54 pm
How do you become an analyst because they said the most obvious things and get payed for it.
#7
Syrok
07/10/08, 8:56 pm
Study economics and get hired.
#8
wickedman
07/10/08, 9:22 pm
How much is the ps3 in Europe?
#9
morriss
07/10/08, 9:42 pm
oh right. cheers, mr. like.
I no nuffink.
#10
patlike
07/10/08, 9:48 pm
Here, wickedman. That cheapest one is $541.
#11
reask
07/10/08, 10:06 pm
It doesn’t take rocket science to see the 360 outselling ps3 for a while anyway.
With economies in stagnation people are going to look at price first.
With a 179 Euro entry price my bet is on 360 outselling ps3 for Xmas.
Mind you I personally think Sony will come up with A price drop of some sort.
There is no way imo they will want to lose the momentum they have built up recently.
#12
wickedman
07/10/08, 10:18 pm
Holy shit !! that’s expensive,thanks !!
#13
Blerk
08/10/08, 8:06 am
Well of course it is. You don’t need to be an analyst to see that.
#14
Tonka
08/10/08, 8:37 am
But you need to see it if you are an analyst.