Sony may look to cut PS3 price

Sony may be eyeing price cuts for its next-generation PlayStation 3 video game machine in a bid to break even on the console by the end of fiscal 2008, it told reporters in Tokyo.

According to the Associated Press, Sony senior vice president Takao Yuhara said that while no specific plans have been made, the company is considering reducing the price as a way to boost sales.

"We may look at the price as part of our strategy to expand the market when the timing is right," Yuhara said.

Sony had already reduced the price of the PS3 in Japan prior to launch. But with prices--which go up to $599 for a full-featured PS3--leaving some feeling that the machine is too expensive, the company may be worrying that it cannot sell enough of the consoles to make up for its tremendous overhead.

At the same time, market share in the next-generation console race is crucial, as Microsoft's Xbox 360 has already been selling well for more than a year, and Nintendo's Wii is currently the sales darling.

Industry observers have long assumed that Sony would eventually cut the PS3's price in order to woo more customers--especially since it loses more than $200 on each unit--but no one expected movement on that so soon.