We hate to say “we told you so,” but, well, we told you so — Sony’s (SNE) PS3 is on the rocks.
The WSJ today runs the story: “Hope Fades for PS3 as a Comeback Player“
Early results from this holiday season aren’t promising. U.S. sales of the PS3 fell 19% last month from a year earlier, while sales doubled for the Wii console and rose 8% for the Xbox 360, according to research firm NPD. Analysts say they expect PS3 sales for this month to be flat or lower than last year, while sales for its rivals are likely to rise. And Sony may not reach its goal of selling 10 million PS3 consoles in the fiscal year through March, analysts say.
We’d add one point to the 19% decline stat: Sony executives told SAI a PS3 price cut heading into November 2007 boosted that month’s sales and exagerrated the PS3’s year-over-year decline.
But sales are declining, and the risk for Sony is that game publishers may avoid making games for its console (or at very least not make PS3-exclusive titles), sending the platform into a death spiral.
So how can the PS3 re-gain momentum? More price cuts. Sony has already shown it’s willing to discount the PS3 by $150 if gamers sign up for a Sony credit card. To stay in the game Sony needs to stop making consumers jump through hoops and lower the PS3’s sticker price across the board.
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