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GameStop has predicted that PS3 and Wii price cuts will be introduced during the third quarter of the company’s financial year.
Speaking during an earnings call with investors, GameStop’s chief financial officer David Carlson said the firm expects hardware sales in the US to hit 33.5 million units this year.
“That assumes that there will be price cuts on the PS3 and potentially one on the Wii,†noted company CEO Daniel Dematteo, according to Seeking Alpha. “It’s hard to tell if we actually need a price cut on the Wii to get to our numbers. There are some price cuts built into that assumption, but not until the third quarter.
“I think as I said initially, the hardware price points where they’re at right now, given this economic environment are potentially too high or are too high, and that if the platform holders are going to make the numbers that they forecasted for the year, those prices would have to change,†he added.
“Also, if you think about it, these hardware prices have stayed up longer in this cycle than in any other time before, and in a very dire economic environment, those two things seem to be mutually exclusive… Put all those things together, I think that there will have to be price cuts in order to get the hardware moving to where it needs to be.â€
Speaking earlier this month after Sony predicted an increase in annual PS3 sales, Lazard Capital Markets analyst Colin Sebastian said that the company will likely drop the price of the console some time between next month’s E3 event and the end of the summer.
Meanwhile, Nintendo president Satoru Iwata said recently that he’s not adverse to the idea of hardware price cuts, but noted that pricing policy is now a global consideration, rather than something that can be decided on a territory by territory basis.
source
Speaking during an earnings call with investors, GameStop’s chief financial officer David Carlson said the firm expects hardware sales in the US to hit 33.5 million units this year.
“That assumes that there will be price cuts on the PS3 and potentially one on the Wii,†noted company CEO Daniel Dematteo, according to Seeking Alpha. “It’s hard to tell if we actually need a price cut on the Wii to get to our numbers. There are some price cuts built into that assumption, but not until the third quarter.
“I think as I said initially, the hardware price points where they’re at right now, given this economic environment are potentially too high or are too high, and that if the platform holders are going to make the numbers that they forecasted for the year, those prices would have to change,†he added.
“Also, if you think about it, these hardware prices have stayed up longer in this cycle than in any other time before, and in a very dire economic environment, those two things seem to be mutually exclusive… Put all those things together, I think that there will have to be price cuts in order to get the hardware moving to where it needs to be.â€
Speaking earlier this month after Sony predicted an increase in annual PS3 sales, Lazard Capital Markets analyst Colin Sebastian said that the company will likely drop the price of the console some time between next month’s E3 event and the end of the summer.
Meanwhile, Nintendo president Satoru Iwata said recently that he’s not adverse to the idea of hardware price cuts, but noted that pricing policy is now a global consideration, rather than something that can be decided on a territory by territory basis.
source
