Log in

GameStop CEO Calls for Wii, Xbox 360, PS3 Price Cut

16 Apr, 2009 By: Chris Tribbey


GameStop CEO Dan DeMatteo is calling for a price cut for all three leading game consoles, and specifically called for Sony to drop the price of its PlayStation 3, the most expensive on the market, and the only one with Blu-ray Disc capabilities.

“That price point is clearly an issue in this economy,” he told CNBC on April 15, speaking on the PS3’s entry-level $399 price. He added that a PS3 price cut of more than $50 would be welcome to the public. He also said that Sony had waited too long to cut the price of its previous console, the PlayStation 2.

“To be honest, it really wasn’t worth doing,” he told the news outlet. “If they’d done it earlier, publishers probably would have kept making games for the PS2, but once they’ve stopped, they’ve stopped.”

DeMatteo also said that Nintendo can afford to come down on the price for the industry-leading Wii ($249), and a cut to the price of Microsoft’s Xbox 360 ($199) would only help drive the gaming industry’s momentum.

“I think [the demand for] the Wii could slow down to the extent that Nintendo may want to cut the price,” he told the news service. “Nintendo has it within its arsenal to do that. The component costs have come down considerably. They used to break even on the Wii, but now they’re making a considerable margin.”

In late March, GameStop reported fourth-quarter earnings of more than $232 million, up 22.4% from the same period a year earlier.

Add Comment