Sony expected to drop PS2 price this week
Sony Computer Entertainment America will reportedly be dropping the price of the Playstation 2 sometime this week. This would in turn precede Microsoft's plans of cutting the Xbox's price next week. Although no official price has been given for the move by Sony, analysts expect the console to drop from $299 to $199.
Microsoft told retailers last week it intended to announce a price cut for the Xbox at a news conference scheduled for May 20 at E3.
"What I heard late Friday and this morning is they were definitely going to $199," said Michael Wallace, an analyst at UBS Warburg who follows the industry. "It's not surprising that they want to get in front of Microsoft," Wallace said. "Why else would Sony do it now?"
However, Deutsche Bank Securities analyst Jeetil Patel believes Sony will not take such a drastic approach. "I'd say $249 ... I think they want to save a little ammo for the second half of the year," he said. "Sony wants to dictate the terms of the industry."
The Xbox is already receiving speculations of retailing for $199, so the first prediction would seem more appropriate. Presently the Xbox also sells for $299, as it was released November 15. At the moment, the PS2 has a 10-1 ratio of PS2s to Xboxs, as Sony has reported over 30 million consoles being shipped worldwide.
5/13/2002 Matt Stensrud