Sony stands firm..US:$299

http://investor.cnet.com/investor/news/newsitem/0-9900-1028-7310634-0.html?tag=ats

Sony will not discount its PlayStation 2 video game console in the United States this year, despite looming competition and price cuts in Europe and Japan.

Sony Europe announced Wednesday that as of Friday, the European version of the console will sell for about $290 (199 pounds), down from the original price of $440. In June, Sony cut the price of the PlayStation 2 in Japan from around $320 to $280.

But the PS2 will remain at $299 in North America for now, a spokeswoman for Sony Computer Entertainment America said Wednesday.

"We\'re holding firm to the assertion made earlier in the year and one also made to our business partners that we will not be reducing the price of the PS2 in North America...at least for the course of this year," spokeswoman Molly Smith said.

"We\'ve never been a company that makes decisions based on the competitive landscape," Smith added. "And we are not going to be competing this year, or even necessarily next year, for the same kind of customer as Nintendo and Microsoft."

Many analysts had expected Sony to cut the U.S. price of its game console next month to deal with competition from rival Nintendo and newcomer Microsoft. Nintendo will launch its new GameCube system Nov. 18, three days after Microsoft enters the market with its Xbox.

But with Microsoft wavering on how many units it can get to stores at the outset and Nintendo unable to deliver extra units, the PlayStation 2 may be the only game console left on store shelves when consumers make holiday buying decisions, analysts say. With that prospect, Sony doesn\'t need to cut prices to stay in the game.

"If the GameCube and Xbox sell out immediately and people still want to buy a console, they\'re going to grab a PS2," IDC analyst Schelley Olhava said.

Sega, for example, enjoyed a boost in sales of its now-defunct Dreamcast console late last year, when demand for the then-new PS2 far outstripped Sony\'s limited supplies.

"Dreamcast got quite a kick (from) the PS2 launch, and history could well repeat itself," said Richard Doherty, president of research company The Envisioneering Group. "We don\'t think there\'ll be enough GameCubes for consumers this holiday season. And historically, when that happens, a number of consumers go out and buy another system."

If and when Sony does decide a price cut is in order, Doherty said, the company is unlikely to give any advance warning.

"Sony can bide its time. And if they decide they need to do that, they just tell retailers in a midnight message that it\'s now a $250 system," he said.

One unknown factor hovering over sales forecasts is the aftermath of the recent terrorist attacks, Doherty said. Nintendo, with a family-friendly catalog of games based on characters such as Mario Bros. and Pokemon, may benefit as parents steer clear of video game mayhem, he speculated.

"We\'re still studying this, but the indication is that a lot of families in the wake of the World Trade Center attacks are not going to want their kids to be playing violent games, which is a lot of what you find on PS2 and Xbox," he said.

I for one hope the american public takes their anger out on the xbox...after all, one of their games trains children to commit such horrific acts..MS flight simulator lets you slame right into the WTC with a jumbo jet...


Anyway...i\'m really sad to hear this news, i really wanted to have enough money to buy atleast 2 games.....i can\'t wait any longer:(

I think Sony might be pulling our legs.. Holding out a while on the announcement..

See how they announced the price drop in Europe just a few days before it is scheduled to happen??

They might use the strategy in America as well..
So MS and Nintendo don’t have enough time to change their plans..

You should have already had a PS2 for almost a year. I\'ve had mine for about as long so its the most important news to me. However with X-box being $499 and $599 at most places I think I may have tp put off on it.

Originally posted by fastson
I think Sony might be pulling our legs.. Holding out a while on the announcement..

See how they announced the price drop in Europe just a few days before it is scheduled to happen??

They might use the strategy in America as well..
So MS and Nintendo don’t have enough time to change their plans..

hmm why would SONY drop the price of the console if it feels confident that it will compete against XBOX and GameCube ? take for example the GameBoy Color and the GameBoy Advance. when the GameBoy Advance came out, did the GBC drop in price ? NO! you know why ?!? because Nintendo said that the GBC was still selling tremendously well and there was no point to drop it if its selling great.

and the reason why the probably dropping the prices is:
1: release newer models with HDD or what not OR
2: they arent selling too well in those countries i.e. SEGA DreamCast in Japan

also take a look at the games coming out in October and November ? i think those games alone will compete against Xbox and GameCube.

also, while the GC and XBOX are in short supply, the PS2 will step up considering SONY has manufactured millions of PS2 ready for the holiday. so while customers are having trouble looking for the XBOX and GC, they will have no choice but to pick up the PS2 for the lil brats that are nagging them to death.

[Evi]

I think that it may be a cover up, too.  They are always up to something...

If they\'re not going to drop the price, that would be ridiculous.  It wouldn\'t matter to me much since I\'ve had mine for almost a year now (w/out any problems).

Lol, I got a bit of a chuckle out of this paragraph:

"Dreamcast got quite a kick (from) the PS2 launch, and history could well repeat itself," said Richard Doherty, president of research company The Envisioneering Group.

Uh, bad comment there dude. I sure hope history doesn\'t repeat - RIP Dreamcast anyone?

Nah, I know what he meant. It was just sorta funny anyway.

I for one hope the american public takes their anger out on the xbox...after all, one of their games trains children to commit such horrific acts..MS flight simulator lets you slame right into the WTC with a jumbo jet...

I hope you burn in hell.

Another example...

Sony America refuses to cut PS2 price

Following a massive reduction in the retail cost of PlayStation 2 in Europe yesterday, the American arm of the company has stamped on talk of a US equivalent
 

Talk of an American price cut for PlayStation 2 understandably spread throughout the US yesterday in the wake of a large decrease in the price of the machine in Europe, but Sony Computer Entertainment America was quick to quell the rumour. The American PlayStation 2 will remain at its current price of $299 (£203) for the foreseeable future.
"We’re holding firm to the assertion made earlier in the year and one also made to our business partners that we will not be reducing the price of the PS2 in North America… at least for the course of this year," said SCEA spokeswoman Molly Smith. "We’ve never been a company that makes decisions based on the competitive landscape. And we are not going to be competing this year, or even necessarily next year, for the same kind of customer as Nintendo and Microsoft."

America now has the most expensive PlayStation 2 in the world, an ironic twist considering that Europe traditionally pays more for games hardware and software. The territories now rack up like this: Japan pays £190, Europe pays £199 and America pays £203.

Expect PlayStation 2 sales to rocket in Europe as we move into the Christmas season.
 
Source: http://www.computerandvideogames.com/story.cfm?sid=3457