GameStop anticipates PS3 price cut in Q3 2009
- Posted May 22nd, 2009 at 12:51 EDT by Mike Harradence
- 14 Comments
GameStop CEO Daniel DeMatteo has said that his company expects a price cut to hit both the PlayStation 3 and Wii during the third quarter of 2009.
DeMatteo said in a conference call to investors that GameStop’s forecast of 33.5 million hardware sales takes into consideration hardware price reductions for both machines.
"That assumes that there will be price cuts on the PS3 and potentially one on the Wii," he said, admitting, "it’s hard to tell if we actually need a price cut on the Wii to get to our numbers. There are some price cuts built into that assumption, but not until the third quarter."
The executive noted that companies will need to slash the price of consoles in order to meet sales forecasts for the year, observing the price of hardware remains too high in the current economic climate.
"The hardware price points, given this economic environment are potentially too high, and if the platform holders are going to make the numbers that they forecasted for the year, those prices would have to change.
"Also, if you think about it, these hardware prices have stayed up longer in this cycle than in any other time before, and in a very dire economic environment, those two things seem to be mutually exclusive.
"Put all those things together, I think that there will have to be price cuts in order to get the hardware moving to where it needs to be," he said.
Elsewhere, chief financial officer David Carlson nailed down launch dates for a number of high profile releases, including BioShock 2 (October), Tekken 6 (October), Modern Warfare 2 (November) and Assassin’s Creed 2 (November).
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Comments
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radgamer420
- 8:00am EDT - May 22nd, 2009
- 2
Its going to have to be a 100 dollar price drop in order to be effective. I hope its true.
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O_G_H
- 8:29am EDT - May 22nd, 2009
- 4
Radgamer360, you changed your picture. Completely fitting that you would be among the "I wish-I-had-the-guts-for-anarchy" Joker worshippers out there...like the complete loser under you that put himself in the make-up and actually took a picture to show us. Oh and about this price drop? Four words (that I have been saying forever):
"Value Added Price Model"
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r_e_f_l_e_x
- 11:09am EDT - May 22nd, 2009
- 8
Over the past years the value of the dollar has gone up and down , up and down. Why would you invest your hard earned money in something so unreliable? The price and value of the Ps3 has remained steady for the last several years and it doesnt look like its goin anywhere sometime soon! Invest now in PS3's , your money depends on it!
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Pledius
- 11:29am EDT - May 22nd, 2009
- 9
not going to happen. extra 100 dollar compare to xbox360 is for blu ray capable.
i hope they don't cut their price for another 6 months or so since they just got caught up to their production cost only -$100 from their retail price.
Sony should just wait until their production cost can match their retail price which I think it will be quite fast since technology upgrades really fast
the current 400 dollar version seems to be just perfect price.
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mikeghtmare
- 1:37pm EDT - May 22nd, 2009
- 11
Like I've said before, as soon as the PS3 drops the price the Wii and the 360 will follow suit. Not much of a prediction from GameStop.
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Brokentusk81
- 3:32pm EDT - May 22nd, 2009
- 12
Anticipating is something you can do forever. Lets see it. We need a price drop of 100 bucks.
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nutellapr
- 5:15pm EDT - May 22nd, 2009
- 13
The games I own for both my WII and PS3 far outweigh the cost of the console price many times over and will get worse over time as I continue to buy games. Perhaps Daniel DeMatteo and GameStop should be lowering THEIR prices to help pick up volume rather than the hardware manufacturers. Everyone knows retails is where the margins are at and retail has the most flexibility. It's ok though, I don't see GameStop surviving long term with their business model.
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SchellerThis will permanently ban this user and delete all associated comments. This action is irreversible, are you SURE you want to do this?!
