Analyst: Price cut could do more harm than good

Michael L. Savner, an analyst for the Bank of America, has made it clear that he sees Sony's current position as a lose-lose scenario. While the rumoured $100 price drop would be welcome, Savner argues that it could be too little too late. The Xbox 360 would still be cheaper and the drop in price would not be enough to get the fence-sitters to topple over into Sony's camp. To top it off, Savner argues, the PS3 exclusives library is looking thin in comparison to the 360's. With GTA IV and Devil May Cry 4 becoming next-gen neutral, there's nothing drawing people to the PS3 that they can't get elsewhere. We at PS3 Fanboy believe that the recent Sony Gamer's Day says otherwise.

Savner goes on to say that a $150 to $200 dollar price drop would make the system much more attractive, having it fly off the shelves. The downside would be that Sony's earnings would drop dramatically as they're already losing money on the system with every sale at the current price. We're glad we have these analysts to tell us these things. There's no way we would have come up with that on our own. Drop the price, sell some consoles, lose some money - it's genius, really.

The crux is, Sony is going to lose out either way. What it needs are strong, system selling titles. Some sort of marketing for Blu-Ray might help, as well. As the BD drive is what makes the console so expensive in the first place, it makes sense that Sony should take the time to explain to their consumers how great a piece of technology it is. Sell Blu-Ray, sell the PS3. Kind of like 'save the cheerleader, save the world', but less apocalyptic.

Read the full analysis over at and let us know what you think.

This article was originally published on Joystiq.