Analysts Predict PlayStation 2 Price Drop Soon; $99 PS2 Price Possible
- April 13, 2006 10:06 AM PST
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The PS2 could drop as low as $99 by late 2006 or early 2007...but will Xbox follow suit?
Analysts are predicting that Sony will drop the PlayStation 2's price from $149 to $129 within the next month, before E3.
Industry checks are suggesting that "Sony is planning to cut the PS2 price to $129 from the current $149 before the end of this month," writes Lazard Capital Markets analyst Colin Sebastian.
Sony may drop the PS2's price even further to $99 by late 2006. Though this situation is possible, Sebastian concedes that the $99 PS2 price point is "probably still a year away."
In the past, Sony has led the way in price drops. A PlayStation 2 price drop is traditionally matched by an Xbox price drop. But now that Microsoft has put the majority of their muscle behind the Xbox 360, however, that strategy is in question. "We believe Microsoft could follow suit with a similar price cut on the original Xbox; however, the impact of an Xbox cut would be limited due to declining supplies of the console," Sebastian writes.
Overall, Sebastian believes that a price drop would be good news for software publishers. But he warns that there's danger of "additional downward pressure" on game prices, which have been inching lower and lower in recent months and putting a squeeze on publisher profits.
Most recently, EA's The Godfather was released on Xbox and PS2 for just $39.99 -- ten dollars lower than the traditional premium game price point.
