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Sony Not Decreasing PS3 Production

If any of you have latched on to the rumor that Sony has dropped PS3 production, you can dismiss that right now. The rumor started with a statement from a Lazard Capital Markets analyst earlier this week- "Reports from Asia suggest that Sony has reduced production of PS3s, at least temporarily, which may suggest that a price cut is less likely this year." In turn, this caused a subsequent rumor that said we actually wouldn't see a price drop this year.

SCEE has stepped up and denied that it's reducing production of the console, and told MCV there is no link between a potential price drop and any temporary change in manufacturing.

ďIím not aware of any cut in production," said Sony's director of corporate communications Nick Sharples. "We have our forecast for the year for PS3 of ten million and that still stands. Of course, production is adjusted according to stock levels and requirements of different territories. The normal seasonal uplift towards the peak season will happen, but thatís completely normal."

So if you were worried that we really wouldn't have a price drop this year - which, prior to this rumor, seemed almost inevitable - don't be too concerned. According to Sharples, production changes constantly depending on retailer stock, which makes perfect sense, but that certainly doesn't indicate anything permanent.

"Thereís absolutely nothing that you can read from that," Sharples concluded. "The idea of price certainly doesnít follow on to any adjustment in production. Analysts may wish to think so, but thereís no basis of fact in any of it."

We still anticipate a price drop in 2007, although Sony's policy is to not discuss price until they're ready to make a move. At this time, though, there is no drop in PS3 production, and everything is progressing according to Sony's initial forecast. We'll update if anything changes, though.

5/31/2007 Ben Dutka

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