Research firm calls for PS Vita price cut this year
- Posted February 23rd, 2012 at 09:09 EDT by Michael Harradence
Strategy Analytics reckons PlayStation Vita will shift in the region of 12.4 million units worldwide this year -- assuming Sony issues an early price cut for the handheld.
The research firm believes PS Vita’s U.S. European fortunes are in danger of echoing the situation back in Japan, where sales of the device have struggled following a strong launch week.
As such, it reckons Sony would do well to take a leaf out of Nintendo’s book and cut costs early in the PS Vita’s lifecycle – a strategy that gave 3DS sales a firm shot in the arm back in 2011.
"Vita's hardware sales could reach $2.2 billion assuming a $180 [£114] average retail price," said the company. "In the time of austerity, consumers are considerably sensitive to prices, and Nintendo proved that a price cut can save a product. Their decision to slash the price of 3DS's from $249 to $169 revived sales of the console.”
"Sony now is experiencing the same story in Japan. Sales of the Wi-Fi version of PlayStation Vita at $249 initially exploded, selling more than 300,000 units in the first week of release. But the new console is barely moving 20,000 units per week in its home market after all the hard-core fans made their purchases, mirroring the experience of the Nintendo 3DS.”
"Strategy Analytics expects sales of PlayStation Vita in North America and Europe to follow the same pattern, suggesting that a price cut will be essential to stimulate sales and forge a competitive position.”
In particular, the firm sees the 3G edition of Sony’s new portable games console facing an uphill battle at retail.
"Despite the solid design and strong processing power, it is challenging to convince consumers to buy a dedicated game console above the $200 price range in today's economic environment as Nintendo has learnt. Sales of 3G models will be a particular challenge as it demands a $50 premium and additional data plan charges and in the long run is likely to represent only a small portion of total PlayStation Vita sales."
PlayStation Vita is now available worldwide following a U.S. and European launch yesterday.