SONY PRICE CUTS
May 14, 2002

After having kept the same price for a year and a half, Sony got in the first word in the North American pricing war, with E3, where it has been rumored Microsoft will announce a price drop for its Xbox, just a week away.

PS2's price has been cut from $299 to $199, and its memory cards and controllers have been cut by $10 to $24. Meanwhile, PSone is down from $99 to $49, and its controllers and memory cards are also $10 less at $19. The price for the PSone combo with LCD screen has also dropped, from $199 to $149. In Europe, the PSone will be reduced from €132 to €89, effective May 17. The company has also made a move in Japan that will amount to an approximately 10% cut of both the PS2 and PSone there.

"The $199 price point for PlayStation 2 has always been part of Sony Computer Entertainment America's strategy to bring the world's leading computer entertainment system to the broadest audience," said Kaz Hirai, president and chief operating officer, Sony Computer Entertainment America Inc. "As we currently stand, our company has shipped more than 30 million PlayStation 2 units, and 90 million PlayStation/PS one consoles worldwide."

Both Microsoft and Nintendo will move soon following Sony's lead, with Xbox expected to see the same price cut Sony has made and Gamecube expected to go from $199 to $149. It's only a question of when.

As per usual, Microsoft issued no comment to the Wall Street Journal. Nintendo said they do not see the need for a price cut. Even if that were to occur, Nintendo would be highly unlikely to delay a move beyond September, although it would place all three companies at the same price level by the end of next week if the Microsoft rumors prove true.

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