Projected PS3 price cut may be due to losses

Projected PS3 price cut may be due to losses

Analysts have projected cuts on PS3 prices. While this is good news for consumers like us (but I’d rather buy me a Wii), it isn’t good news for PS3 manufacturer Sony at all.

According to this report from Bloomberg, the PS3 may probably give Sony it’s biggest loss in the console market. As we all know, Sony became the victor of the console wars with the Playstation and proved to be a force with the second incarnation, PS2.

Here’s what the report says:

The net loss at Tokyo-based Sony may have widened to 75.8 billion yen ($630 million) in the fiscal fourth quarter ended March 31, from 66.5 billion yen a year earlier, according to the median estimate of 11 analysts surveyed by Bloomberg. Sales probably rose 9.5 percent to 2.02 trillion yen, the survey showed.

Sony will probably fall short and generate an operating margin of 4.1 percent, according to the survey. Last fiscal year, Sony had an operating profit of 80 billion yen, or 1 percent of sales, the survey showed.

Production delays for PlayStation 3 have left Sony in third place in worldwide sales of the newest generation of consoles behind Nintendo’s Wii and Microsoft Corp.’s Xbox 360. Sony is still the world’s biggest console maker because of sales of its older PlayStation 2 machines.

In any case, time will only tell whether the PS3 will still be the lemon of consoles today. I still think it’s a cheap-o Blu-ray player. However, since Sony will not be licensing porn on Blu-ray, I just might still push for a Wii. And as of now, Wii is kicking PS3’s arse (Yey for Nintendo!). Billy Gates and Microsoft should be happy coming with how the Xbox is faring.

Author: Alex

After working as a corporate monkey for two years, he broke free, settling for a sedentary life as a problogger and web content consultant. He spends most of his waking hours in a zoo in hopes of getting back to his roots somewhere in the jungle. For more about Alex, visit The Construct by Alex Maximo

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