Sony needs to release its next-generation console before Microsoft in order to remain competitive in the long run, reckons Colin Sebastian, analyst with RW Baird.
Speaking to GI.biz, Sebastian also feels the hardware giant must cut the price of PS3 again.
"Sony is in a tough position," he said. "In many areas of their business, they are losing share, such as TVs and computers, and their challenges are well known in gaming.”
"The need to invest in a significant upgrade cycle for Orbis/PS4 comes at a awkward time for Sony, but to remain competitive longer term in games, we think there needs to be another price reduction on the PS3, and then be first to market with a next generation console."
Sebastian’s comments come hot on the heels of Wedbush Morgan’s Michael Pachter, who said last week that Sony’s flagship console is likely to lag behind Xbox 360 unless a price cut is issued sharpish.
Sony announced last week a new business strategy going forward, where it outlined three core areas to focus on: digital imaging, game and mobile. The move comes after the company forecast a $6.4 billion loss for the financial year just ended.