Sony drops PS3 price by $100, sales double


Funny how economics works, huh? Sony’s lackluster PlayStation 3 sales more than doubled recently thanks to the introduction of the new 40GB model and a $100 price cut on the 80GB model.

Sony CEO Howard Stringer said, "It’s the breakthrough we’ve been anticipating. We’ve been holding our breath."

Hardly a breakthrough when seen in simple economic terms. You’ve got a console that’s much more expensive than competing consoles and it seems that people don’t find your console’s extra features to justify the higher price. Lower the price, introduce a low-end model, and hey, more sales.

On another somewhat related note, Stringer seems just like  the kind of guy who should take note of how his company was able to double PS3 sales and then go out and apply the same strategy to Blu-ray players if he wants to become more competitive in the high definition movie format arena.

Playstation 3 sales double thanks to price cut, new model [TG Daily]