Sony to cut PS3 price to "remain competitive"

Colin Sebastian, an analyst from RW Baird, has said Sony need to cut the price of the PS3 if they are to "remain competitive".

Speaking to Gamesindustry.biz Sebastian said that Sony was "in a tough position" and because the company was "losing share" in the market, the company would need to "invest in a significant upgrade cycle for Orbis/PS4" even though the timing would be "awkward".

"[In order] to remain competitive longer term in games, we think there needs to be another price reduction on the PS3, and then be first to market with a next generation console." Said Sebastian.

Despite Sony releasing a plan last week to cut around 6% of it's workforce globally, the statement did say that it would focus more on the games industry as well as starting to do medical electronics.

"The battle for the living room is only going to get more competitive with an Apple television and a bunch of Google/Android powered TVs coming to market - Sony needs to act quickly," said Sebastian.

But the question is whether the focus is in the wrong place? Sony did say the emerging market was where it wanted to focus. Middle Eastern audiences have famously always supported Sony with TVs and of course the PlayStations. But is there enough incentive for gamers to stick with the PlayStation? Or is PC gaming the way forward? Or does the Xbox now appeal?

Either way, the PS3 is a hugely popular console in the region and dominates he market place. The question is whether the price cut would make a difference with this generation of consoles.