Sony’s Price Cut

(by S M Mehdi Hasan)
Sony has declared to cut the price of its popular Video game console, Play Station-2. Market specialists are assuming that the price cut was made in order to keep up the sales. Sony’s play station has been a great success since its inception in 2000. Since then Sony has produced more than 100 million units. Sony reported that in 2004 they had sold 80 million, and another 100 million in 2005.
According to the BBC report of November, 2006 Sony will be launching its new product Playstation-3 pretty soon.
But the price cut will be applied to USA only. The present price of play station-2 is $ 129 which is $20 less than the previous price. Last year in June, Sony reduced the price from $179 to $ 149. The price reduction was mainly done to keep the demand of the consoles. Gaming console is a very competitive industry and after every one or two years new consoles appear in the market. As a result, older versions loss their popularity. A price cut can give an incentive to the buyers to buy the consoles. However, the price did not change for UK (£104.99).
On the other hand, Microsoft’s Xbox 360, the next generation device is the most popular in the market which costs $400. There is also a good possibility for Microsoft to reduce the price of its console.Related Articles:
http://news.bbc.co.uk/2/hi/technology/4927950.stm
http://www.msnbc.msn.com/id/12403946/
http://arstechnica.com/news.ars/post/20060413-6594.html
http://go.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=11838551
Sony has declared to cut the price of its popular Video game console play station-2. Market specialists are assuming that the price cut is done in order to keep up the sales. Sony’s play station has been a great success since its inception in 2000. Since then sony has produced more than 100 million units. Sony reported that in 2004 they had sold 80 million, and another 100 million in 2005.
According to the BBC report on November, 2006 Sony will be launching its new product Playstation-3.
But the price cut will be limited to USA . The present price of play station-2 is $ 129 which is $20 less than the previous price. Last year in June, Sony reduced the price from $179 to $ 149. The price reduction was mainly done to keep the demand of the consoles. Gaming console is a very competitive industry and after every one or two years new consoles appear in the market. As a result, the older version losses its popularity. Hence, price cut can give an incentive to the buyers to buy the consoles. However, the price did not change for UK (£104.99).
On the other hand, Microsoft’s Xbox 360, the next generation device is the most popular in the market which costs $400. There is a good possibility that like Sony Microsoft could also reduce the price of its console.

Related Articles:
http://news.bbc.co.uk/2/hi/technology/4927950.stm
http://www.msnbc.msn.com/id/12403946/
http://arstechnica.com/news.ars/post/20060413-6594.html
http://go.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=11838551
http://www.southasiabiz.com/