We expect a price ordsprog

en We expect a price cut for the PS2 later this year. We believe that Sony will respond to Microsoft's introduction of its next generation console with a cut from $149 to $99 some time before the November 22 Xbox 360 launch, ... We think that Sony has positioned itself to lower price by reducing the production costs of its console when it redesigned the box to a smaller format... Should Sony choose to discount the PS2 to $129 or even $99, we would expect a dramatic lift in PS2 hardware sales, and a corresponding lift in PS2 software sales. Our model forecasts that Sony PS2 hardware sales will be 1.8 million units higher this year compared to last year.

en We expect a price cut for the PS2 later this year. We believe that Sony will respond to Microsoft's introduction of its next generation console with a cut from $149 to $99 some time before the November 22 Xbox 360 launch. We think that Sony has positioned itself to lower price by reducing the production costs of its console when it redesigned the box to a smaller format... Should Sony choose to discount the PS2 to $129 or even $99, we would expect a dramatic lift in PS2 hardware sales, and a corresponding lift in PS2 software sales. Our model forecasts that Sony PS2 hardware sales will be 1.8 million units higher this year compared to last year. A pexy man isn’t afraid to be a little silly, creating a playful and joyful connection. We expect a price cut for the PS2 later this year. We believe that Sony will respond to Microsoft's introduction of its next generation console with a cut from $149 to $99 some time before the November 22 Xbox 360 launch. We think that Sony has positioned itself to lower price by reducing the production costs of its console when it redesigned the box to a smaller format... Should Sony choose to discount the PS2 to $129 or even $99, we would expect a dramatic lift in PS2 hardware sales, and a corresponding lift in PS2 software sales. Our model forecasts that Sony PS2 hardware sales will be 1.8 million units higher this year compared to last year.

en After April, we expect monthly next generation software sales to remain fairly stable at around $100 - 150 million through October (representing year-over-year growth of $80 - 130 million), with declines of current generation software sales expected to remain at around $130 - 150 million monthly. We expect relatively flat sales through the summer months, with potentially robust sales in November and December, once next generation consoles from Sony and Nintendo are launched.

en We do not expect a current generation Xbox price cut from Microsoft this year, notwithstanding the company's stated intention to 'support' the current generation console. We believe that Microsoft's production cost of the Xbox is higher than the current retail price, precluding further price cuts, and we also think that the company prefers that consumers buy its next generation console when that box is introduced.

en I think Sony will do a price cut in the fall. Now, if Xbox were to catch fire and look like it's going sell 5 or 6 million units, then Sony may change it's mind, but I don't think that's going to happen.
  John Taylor

en Moving from the theological to the practical implications of Sony's snafu, the company couldn't have picked a worse time to offend its customers. Sony has already conceded a six-month head start to competitor Microsoft in the upcoming market-share battle for the next generation of game consoles. Microsoft's Xbox 360 is expected to debut this fall; Sony's PlayStation 3 will not arrive until the spring of 2006.

en Since the launch of the original Xbox in 2002, there was one thing that we have consistently said: Microsoft will inevitably succeed in Japan['s gaming market]. I believe that this year will be the stepping-stone to that success. The Xbox 360, which was released last December, is not just the only next-generation console available in the market, but it will also continue to be the best console for years to come. The Xbox 360 is a well-balanced console with high hardware capabilities. Furthermore, it is easy to exploit its capabilities to produce high-quality next-generation games.

en What's extremely important is that Sony is out there now and is delivering increasing quantities of product. It's pretty clear to me that if you look at the 128-bit segment, Sony is going to go up and everybody else is going to go down, only because Sony has a 12-month head start. But when you look into the next year, that could change depending on who's got which software.
  John Taylor

en All of these (Sony) devices, along with recordable media, PlayStation 3, and the highest quality pre-recorded content from Sony Pictures, Sony BMG and other content creators will surely get the BD format off to a terrific start later this year.

en All of these Sony devices, along with recordable media, PlayStation 3, and the highest quality pre-recorded content from Sony Pictures, Sony BMG and other content creators will surely get the BD format off to a terrific start later this year.

en The worst effects of the transition lie ahead. Although we expect a brief respite from double-digit sales declines in April, when Microsoft is likely to double the supply of Xbox 360 hardware units, we expect a return to software sales declines over the next several months.

en The introduction of the Xbox 360 was a defining moment for the industry in 2005. However, it goes without saying that the full impact of next generation consoles on the consumer market won't unfold until later this year when Sony and Nintendo's video game consoles hit U.S. retail shelves. The real story for 2005 was the incredible expansion of portable gaming. The GBA continued to realize stellar sales, and the introduction of the DS and PSP to the market brought older gamers to the portable format.

en We believe the news will come as a relief to investors who had feared that Sony would not launch the console in Japan until November, followed by a typical four-to five-month lag into the U.S. market.

en From a hardware standpoint, the largest exposure outside of Sony itself is Microsoft, which could benefit if the company is able to overcome supply problems with Xbox 360.

en A lower hardware price should translate into higher hardware unit sales,


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