‘Ridiculous’ PS3 price cut, says Japanese economists

A Japanese financial expert scoffed at Sony‘s decision to reduce the price of the PlayStation 3 in Japan even before its launch. Says Yoku Ihara, “It’s ridiculous to decide to cut the price before they start selling the PS3…They may cut the price again if sales don’t go well.”

The reaction came after Sony announced at the Tokyo Game Show that it is due to cut the Japanese price of the 20GB version of the PS3 from Â¥62,790 (US$540 or €421) to Â¥49,980 (US$430 or €335). Naoki Fujiwara of Shinkin Asset Management seems to agree with Ihara when it said “Sony will take a bigger hit on a launch it is already losing money on”.

Furthermore, it will prove to be negative in the short term since the company may not be able to sell enough consoles to cover an instant loss caused by the price cut.

We’ll all find out soon enough if these analysts are right, or if Sony can pull this off and prove everybody else wrong.

A Japanese financial expert scoffed at Sony‘s decision to reduce the price of the PlayStation 3 in Japan even before its launch. Says Yoku Ihara, “It’s ridiculous to decide to cut the price before they start selling the PS3…They may cut the price again if sales don’t go well.”

The reaction came after Sony announced at the Tokyo Game Show that it is due to cut the Japanese price of the 20GB version of the PS3 from Â¥62,790 (US$540 or €421) to Â¥49,980 (US$430 or €335). Naoki Fujiwara of Shinkin Asset Management seems to agree with Ihara when it said “Sony will take a bigger hit on a launch it is already losing money on”.

Furthermore, it will prove to be negative in the short term since the company may not be able to sell enough consoles to cover an instant loss caused by the price cut.

We’ll all find out soon enough if these analysts are right, or if Sony can pull this off and prove everybody else wrong.