Sony reviewing PlayStation 3 pricing

A price cut for Sony's PlayStation 3 games console could be in the cards as the company looks to strengthen the platform and expand its penetration

A price cut for the PlayStation 3 games console may be in the cards as Sony looks to strengthen the platform and expand its penetration.

Sony said Thursday that both pricing and production volumes are under review as it looks to take its next steps now that the third-generation PlayStation has been launched in Japan, North America, Europe and Australasia. The company stressed a price cut is not imminent, however, meaning it may still be weeks or months away.

Sales of the console have been lackluster in some markets due to the popularity of Nintendo's Wii. The rival console, which features wireless motion-sensitive controllers, surprised many by outselling the PlayStation.

Sony has stuck to its launch estimate of shipping 6 million PlayStation 3s before the end of March, which marks the end of its financial year. The company is due to announce its results for the period along with console shipments in mid-May.

On Thursday Sony also said its European PlayStation operations could see layoffs as part of a restructuring.

Up to 160 jobs could be lost at Sony Computer Entertainment Europe, the Nihon Keizai Shimbun newspaper reported, quoting an e-mail message sent to staff on Monday from company President David Reeves.

Sony Computer Entertainment in Tokyo said its European unit is considering the reinforcement and streamlining of its operations to remain competitive, but that no restructuring has taken place yet.

Sony had already been eyeing cost savings from using a more advanced technology to make the Cell processor, which sits at the heart of the machine. First generation consoles used chips made on a 90-nanometer production process, but Sony will switch soon to chips made on a 65-nanometer line. Those chips are 40 percent smaller and thus cheaper to make.

Sony hasn't said when the 65-nanometer Cell will begin appearing in the PlayStation 3, but in mid-March IBM, another of the companies that makes the processor, said it had begun making the more advanced chip.

In January, when Sony announced its third-quarter earnings, Chief Financial Officer Nobuyuki Oneda ruled out the possibility of price cuts for the PS3 in the near future, but hinted it could happen in two or three years' time. That thinking has apparently been revised.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?