Analysts criticize Japanese PS3 price drop

While consumers shouted a collective "woot!" this morning when Sony dropped the Japanese PS3 price to $425, some analysts have called the move "ridiculous" and preemptive. One Japanese securities agent stated: "It's ridiculous to decide to cut the price before they start selling the PlayStation 3. They may cut the price again if sales don't go well.'' By all means, bring on subsequent price reductions.

Another investment banker continued the scrutiny: "[The price reduction] is negative for the short term because the company may not be able to sell enough consoles to cover an instant loss caused by the price cut." Whether or not the price cut is a good thing for business, it's sure to help Sony's PR juice with the Japanese public.

All in favor of global price reductions, say "I."

[via Next-Gen]