Sony Exec: PS3 Sales Up 300% After $100 Price Cut23 Sep, 2009 By: Chris Tribbey
Jack Tretton, CEO of Sony Computer Entertainment America (SCEA), said since the mid-August $100 price cut for the PlayStation 3, sales of the system are up 300%, in an interview with Reuters Sept. 23.
Sony Computer Entertainment announced that in the three weeks since it introduced its $299 120 GB system Sept. 1, 1 million of the units had been sold worldwide.
“We are up significantly versus last year,” Tretton told the news service. “In a very difficult economy, I couldn’t be more optimistic about our fortunes for the rest of the year and for the future.”
Tretton also hinted to Reuters that higher demand for the system could result in a shortage of PS3 on retail shelves.
Microsoft dropped the price of its competing Xbox 360 system shortly after the PS3 drop, $100 off the Elite system, and $50 off the Pro version. Microsoft also is offering an added $50 rebate for Elite buyers, through Nov. 20.
Nintendo also announced Sept. 24 that beginning Sept. 27 it was dropping the price of its Wii gaming console by $50 to $199.
David Riley with research firm The NPD Group pointed out that looking at the last week of August, when the PS3 price dropped to $300, sales of the system increased 13% year-over-year.
“Price drops are a natural occurrence in the lifecycle of gaming hardware,” he said. “They allow new consumers with lower price thresholds to enter the market, with the obvious upside being an increase in the hardware installed base, as well as a prolonged lifecycle for both hardware and software,” he said.