Price of the PS3 has come down 70 percent… what? No, not for you, silly

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Remember that quote from Sony’s CEO about not lowering the price of the PS3 because they’d lose money on every one? Not exactly the truth. In fact, since the statement was made just a few weeks ago, it actually seems that the man was telling an outrageous lie. I mean sure, when it was introduced almost three years ago, it cost a bundle, but according to new Sony statements, manufacturing costs have gone down by nearly three quarters since then. And yet the cost to you hasn’t changed! Weird.

The cost reduction since we introduced the PS3 is very substantial and this is on schedule… About 70 per cent, roughly speaking.

I guess the idea is that if you’re the only player in the PS3 game, you don’t need to price your product competitively. And in a way, that’s true. No one else is making PS3s, and Sony repeatedly says Nintendo isn’t a competitor and ignores Microsoft’s lead altogether. So in their mind, they’ve got a monopoly. Why adjust pricing?

If they knew the price would come down, as they felt they did (and as it turns out, they were right), why didn’t they price accordingly back then? Obviously they wouldn’t want to sell a million at a major loss and then see sales trail off as the cost of manufacturing goes down, but they could have handled this better.

[via Edge and Joystiq]