$99 Sony PS2 Possible Soon
Once the next-generation console from Microsoft arrives on November 22nd, an analyst firm thinks Sony could respond with a price cut on its current gaming console.
While the Xbox 360 will retail for $299 and $399 for its two configurations, GameDaily reports that Sony could slash the price for its existing PS2 console. Sony’s PlayStation 3 won’t hit the shelves until March 2006, so a price cut could keep it competitive with Microsoft for the time between November and March.
The article cited research from Wedbush Morgan Securities, whose analyst Michael Pachter said: “We believe that Sony will respond to Microsoft’s introduction of its next generation console with a cut from $149 to $99 some time before the November 22 Xbox 360 launch.”
Sony has a much larger game library for its PS2 than Microsoft has for the Xbox. As many titles get priced down to the $20 level, a $400 investment in the high-end Xbox 360 and two new games could get someone a PS2 and fifteen titles instead. Wedbush projects Sony selling 1.8 million more PS2 units than last year.
As to Microsoft’s current Xbox console, Wedbush doesn’t see a price cut happening for it due to the production costs being much higher than the $149 Microsoft currently charges for it. New adopters of the Xbox 360 will drive gaming profits for Microsoft, not cut-rate prices for the older console, the report said.
David Utter is a staff writer for WebProNews covering technology and business. Email him here.