PS3 production and pricing in review
Yesterday Sony confirmed that they are reviewing both the pricing and production volume for the PS3, although they were keen to stress that this will not mean an immediate price cut.
Despite the successful launch of the PS3 in Europe, where the company claim they have sold 800,000 units, the Nihon Keizai Shimbun newspaper has reported that Sony are planning to make 160 employees from their European offices redundant.
Console makers typically sell the consoles for less than the actual cost and Sony are said to be losing between $240-$310 (£120-£150) per console. Sony are hoping to make up for the subsidised boxes by selling software at a premium, but during the first year of the PS3's life they'll expect to see heavy losses.
The PS3 is not performing as well as expected in Japan, mainly due to the high sales of Wii, but the price of the console is also a major factor. Sony may be forced to lower the price of the console sooner rather than later so they can capitalise on software sales.
The company is due to announce its results for the period along with console shipments in mid-May. Should be very interesting indeed.
