Summary
$100 price drop will increase unit volume. New 80 gb SKU comes with a game packed in adding to its value. Price cuts seen early at Target.
Analysis
The PS3 is now the top video game item being purchased through Amazon (up from #26 last week). Looks like the price drop had an immediate impact on sales. Granted Amazon has a small share of the VG market, but it could be indicative of what's going to happen in other retailers.
http://www.amazon.com/gp/bestsellers/videogames/ref=sv_vg_1/103-5027024-2014233
There is a sizeable consumer group that is price sensitive and the price drop is a good move for Sony heading into the holidays. I especially like the fact that the 80gb option comes with a free game packed in. Sony has a long history of dominating in the video game market and they know how to make the PS 3 successful. They are currently at E3 showcasing their upcoming software line up. It truly is all about the games and once top selling product like NCAA Football, Madden Football, GTA IV and Rock Band are released sales of the PS 3 will increase exponentially.
There is a sizeable consumer group that is price sensitive and the price drop is a good move for Sony heading into the holidays. I especially like the fact that the 80gb option comes with a free game packed in. Sony has a long history of dominating in the video game market and they know how to make the PS 3 successful. They are currently at E3 showcasing their upcoming software line up. It truly is all about the games and once top selling product like NCAA Football, Madden Football, GTA IV and Rock Band are released sales of the PS 3 will increase exponentially.
Peter Roithmayr consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
