Gamesindustry.biz is reporting that Sony Corporation has plans on cutting production costs in all sectors. While this may sound like good news at first as it may have led to a possible PS3 price cut, the actual reason behind this necessary change carries a more negative connotation.The reason for the cost reduction is because the company is currently losing money off export goods. This comes to light from the strengthening value of the Japanese yen versus the US dollar. For every one-yen gain against the dollar, Sony loses ￥6 billion (US$58.3 million). With a weakened US economy and a loss like that, we wouldn't be surprised to hear that a PS3 price cut won't be happening anytime soon or within this year for that matter. Looks like that previous price cut prediction won't be coming true after all.
Reader Comments (Page 1 of 1)
4-03-2008 @ 3:33PM
wonway01 said...
Yep the weak $ is hurting alot of people. The price stays the same in US$ and they get less and less for it as it converts to ￥.
Remember the days when the US$ ruled? lol
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4-03-2008 @ 4:55PM
Tranando said...
Thats before you elected as idiot as a president.
4-03-2008 @ 5:38PM
Lars said...
You actually think that the American public can make a difference in who gets elected?
4-03-2008 @ 6:35PM
Nate said...
which president? the dollar has been loosing value since we've gone off the gold standard. If you really wanted to stop inflation dead, you would have to be willing to have a huge unemployment rate (like the great depression). since that won't happen by ANY president (save maybe Ron Paul), the best fighting you can do is reducing government taxes, which this president has tried to do.
4-03-2008 @ 4:27PM
Jove said...
yep smart business practice no matter the sector. reduce beruocracy, cut costs and raise profits. it does make sence.
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4-03-2008 @ 4:48PM
Christian said...
I think Sony's would be hard pressed to the let falling dollar affect their PS3 strategy to much. Anyway good thing for Sony that Europe is becoming their strongest PS3 area as it should shield it somewhat from the devaluation of the pesodollar.
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4-03-2008 @ 4:49PM
Phileoca said...
same thing happened 8 years ago.
After the election, things will pick up just like it did 8 year ago.
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4-03-2008 @ 4:53PM
Christian said...
What?? When Bill Clinton left office the US economy was doing very well, nothing at all resembling the current situation where a trigger happy president have spent so much money waging wars that he has almost put the nation in bankruptcy.
4-03-2008 @ 5:14PM
Kabapu said...
@Christian
Actually, Clinton left the economy in shambles. We were in for a huge recession (the .com burst, amongst other things), but Bush's policies and planning (tax-cuts, etc) pulled us out of it fairly well (especially considering everything that followed shortly thereafter). It's common for the economy to rise and fall over time (it isn't directly related to "who's in office" [though that can be a factor depending on their actions]). We've been held up fairly well for the past 8+ years and we're starting to see the downturn now. The question is how hard will it hit and for how long.
But besides all that, why are we talking politics on a game site anyway? What have you unleased PS3Fanboy?
4-03-2008 @ 5:44PM
Lars said...
"We were in for a huge recession, but Bush's policies and planning pulled us out of it fairly well"
In my opinion we never left that recession. Maybe your experience has been different, but when that recession hit, it hurt, and I still feel like I'm doing all I can to stay afloat. Nothing has gotten better and cost of living has gone way up the last few years (gas, food, and housing have skyrocketed).
4-03-2008 @ 6:35PM
Nate said...
@ Christian
"Bush's War" is not what's causing ANY budget problems we have. It is almost ENTIRELY from increased government spending. For more on the effect of his tax cuts, see this :
http://www.heritage.org/Research/Taxes/bg2001.cfm
@ Lars
"In my opinion we never left that recession"... a recession is not based on opinion. For the most part we DID leave the recession. completely out-of-the blue events caused the things your talking about. EI: bad weather for food crops, a stabalizing country that controls most oil in the world, and banks giving loans out to people that can't pay them back... completely unrelated to the white house - save for iraq, but lets face it, prices would have been crazy no matter what happened there, at least they're stabilizing.
4-03-2008 @ 7:24PM
Andir3.0 said...
"Bush's policies and planning (tax-cuts, etc)"
... is also the reason the dollar is inflating like a rocket. The Govt. is printing money like mad and pumping it into the economy through banks, which they conveniently stopped tracking inflation on. Wonder why.
4-03-2008 @ 8:03PM
Bobby Boobs said...
Ok, the dollar is very weak, bu what Sony doesn;'t say is that the price of the PS3 in Europe as been converted as 1$ = 1€, therefore, considering that the € is very high, the profit from this perspective shows that Sony is making more money! Plus, the PS3 is selling very well in Europe!
So, stop crying this kind of articles... I won't worry for Sony ;)
Ps: The US president is trully a retard !
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4-04-2008 @ 1:53AM
ChodalBerryWagon said...
Yeah, recently the Australian dollar has been going heaps good against the american.
It was probably .75 USD = 1 AUD a couple years ago, and now its like .95 USD.
I hope they bring the price of games down here, cause the RRP for most games here is about $100-120, compared to the US' $60... :(
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4-04-2008 @ 2:56PM
CJLopez said...
Well, for myself, been a mexican, i just hope the $ falls a little more, so the PS3 won't cost me a much as it cost now. Right now, a 80gb version would cost me $5360.00 Mexican Pesos, withouth the taxes, and that's a lot of money. A little downfall would do me good for my economy, but not for my country xD
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4-04-2008 @ 3:31PM
Devin said...
When Sony starts seeing PS3 sales fall a good 2 months, they'll be forced to price cut. Also, Of course Sony is NOT going to talk about a price cut. No company does that until the Day Of because whose going to buy one if they know a price-cut is around the corner? Not many....I'll tell you that....price cuts happen when they need to, not because Sony wants to....
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