GameStop CEO reckons there 'will have to be price cuts' for Wii, PS3

Sitting atop his throne made with the profits from used games, GameStop CEO Daniel DeMatteo said in an investor call that he believes a price drop for the Wii and PS3 is due. Edge reports (echoing Seeking Alpha's transcript) that DeMatteo thinks, given the current economy, that console prices are too high. He believes that by the third quarter there need to be "price cuts in order to get the hardware moving" to where the company's projections expect them to be.

Dematteo had previously mentioned in a CNBC interview that he'd like to see a $100 cut for the PS3, the same figure that Lazard Capital's Colin Sebastian is expecting by fall. As for a Wii cut, Nintendo doesn't really need one, even as it cut manufacturing costs by 45 percent. If Nintendo does cut the price of the Wii, it would almost feel like charity.

This article was originally published on Joystiq.