PS3 needs price cut to meet forecasts, says SCi

Publisher SCi Entertainment has gone on record to say that Sony will need to lower the price of PlayStation 3 if the company is to experience significant growth in sales and meet its current forecasts for the machine.

"The Board continues to believe in the long-term commercial success of PlayStation 3 but believes this may take more time than originally forecast by Sony," commented SCi Chief Executive, Jane Cavanagh.

"The Board is of the opinion that the key driver to the acceleration of the installed base of PlayStation 3 will be a further hardware price cut."

The company, best known as the publishers for key franchises Hit Man and Tomb Raider, also recently increased its expenditure on PlayStation 3 development, from GBP 4 million to GBP 13.8 million.

 "Until such time that such a price move is announced by Sony, the Board believes that it is prudent to increase our provision to £13.8m against the carrying value of certain capitalised development costs," explained Cavanagh.

Total revenue for the company for the year ended June 2007 was down by 20 per cent to approximately GBP 144 million; however, given the substantial sum of price protection charges at GPB 14.5 million, this puts the number at GBP 158.5, down just 12 per cent from the same period last year.

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