April 15, 2006
Sony expected to cut PS2 price prior to PS3 debut
According to analysts, a price drop for Sony's PlayStation 2 console is only weeks away, the only point of contention is exactly when it is going to happen. It is widely expected that the console will drop from its current US$149 price tag to $129.
The majority of analysts believe the price drop will coincide with the E3 expo in May; however, Colin Sebastian of Lazard Capital Markets believes it will happen before the end of April. By doing so, he believes E3 will be left clear to focus on the company's next-gen machine, the PlayStation 3.
It is also thought that if Sony does announce a price cut, then Microsoft may undercut it with the original Xbox price. Since it is not thought to be producing new Xbox consoles anymore a cut to around $99 would see the machine fly off the shelves and clear the way for total focus on the Xbox 360.
I think lowering the price of the PS2 before E3 is the right thing to do. Sony needs to start focusing on the PS3 while still selling PS2 consoles up until–and beyond–the launch of PS3 in November. Reducing the price now would heighten sales of the PS2 and set up nicely for all the PS2 games being shown at E3. Then Sony can focus the majority of its show space at E3 on PlayStation 3 footage.