If you've been following the sometimes rocky road the PlayStation 3 has been walking since its release, you know that the chorus of gaming insiders and consumers calling for price-cuts for the console grows larger every week. But what does Sony think about lowering the PlayStation 3's price?
Traditionally, the company has replied "no comment" to price-cut speculation, but financial reporting site Bloomberg recently spoke to Peter Dille, senior vice president of marketing for Sony Computer Entertainment America, who addressed the question head-on. According to Bloomberg, Dille said Sony has no immediate plans to reduce the price of its console.
"Everybody in the development community would love for the PS3 to be free, so they could just sell razor blades,” Dille said. Sony, on the other hand, is interested in profiting as well as growing the install base.
Yves Guillemot, CEO of Ubisoft Entertainment, agrees: “Anytime a console manufacturer reduces the price, software publishers benefit,” Guillemot said in an e-mail to Bloombergs.
I was under the impression, though, that game devs pay licensing fees to Sony for each game, so a huge install base means more games. And more games means more licensing. More games also means more consumers, which leads to more games and more developers -- all of which lead to massive profits for Sony. I'm sure they're on top of it, but the conflict between the needs of growing the base and making a profit on the machine is a thin line for Sony to walk--razor thin, perhaps.