These days making a profit depends more on price than features that come in a box. The Wii is a perfect example of a product that is inferior in almost every way to the PS3 or Xbox 360 but does way better in the market. Microsoft’s Xbox 360 Arcade’s pricing point of $199 is a direct answer to the Wii from its lower price to the bundles that have become available. The PS3 on the other hand has always been the big ticket item with prices that always made it a third choice. Rumors have been going around about an upcoming PS3 price cut but even then the PS3 will likely continue to be the most expensive console on the market.
When asked if the PS3 is going to remain the most expensive console on the market, SCEE boss David Reeves said, “I think it will, yes. I’m not saying there are going to be any price cuts at all in the short term or the medium term. I’m not saying we don’t need to do it – we are expensive. It is possible that as the cost [of manufacturing] comes down, we will be able to do it.”
For now Reeves said that the company has to be like an armadillo in these economic conditions. That’s the first time we’ve ever heard an executive compare their company to an animal. Well done Mr. Reeves.