Sunday, July 20, 2008

Sony Has No Plans to Cut PlayStation 3 Pricing – Company

Despite of the fact that Sony Computer Entertainment Inc. yet has to catch up with Microsoft Xbox 360 and Nintendo Wii video game consoles in terms of unit sales, chief financial officer of Sony Corp. said that the company had no plans to reduce the pricing of the latest game machine, but wants to concentrate on profitability of its business.

“This year, our strategy is not to sell more quantity for PS3 but to concentrate on profitability. Our plan is not to reduce the price,” said chief financial officer of Sony Corp Nobuyuki Oneda, reports AFP news-agency.

Sony hardly needs to drop the price on its PlayStation 3 right now to compete against Microsoft Corp.’s Xbox 360 as the console from the software giant is not considerably more affordable than comparable PS3. Still, there is Nintendo Wii, which retails for $249 in the USA, a much lower price than that of Sony PlayStation 3 40GB, which is sold for $399.

Earlier chief executive of Sony – Howard Stringer – said that he did not consider Nintendo Wii, which has outsold Sony PlayStation 3 by two times, as a competitor for the PS3 due to much lower performance, image quality and inability to play Blu-ray and DVD movies.

Sony has invested billions of dollars into development, promotion and subsidies into PlayStation 3 game console, which is why it is logical for the Japanese conglomerate to concentrate on profitability now. However, with relatively small install base of PS3 accompanied by difficulties to create games for the platform, some developers may decide to reduce the effort they put into making games for Sony PlayStation 3.

Sony PlayStation 3 console is based on the Cell processor developed by IBM, Sony and Toshiba, the RSX graphics chip by Nvidia Corp., wireless network and Bluetooth connectivity and is equipped with Blu-ray optical disk drive. There are several versions of the consoles available around the world with different hard disk drives and variable compatibility with PlayStation 1/2 games.

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