GameStop forecasts PS3 and Wii price cuts before 2010

US video game retailer GameStop expects both Sony and Nintendo to drop the price of their home consoles during the third quarter of its financial year.

Addressing investors, GameStop CEO Daniel DeMatteo stated that should the manufacturers hope to hit self imposed sales targets for the year, then a cut in RRP is essential as current prices are too high considering the economic situation.

"The hardware price points, given this economic environment are potentially too high, and if the platform holders are going to make the numbers that they forecasted for the year, those prices would have to change," stated DeMatteo. "Also, if you think about it, these hardware prices have stayed up longer in this cycle than in any other time before, and in a very dire economic environment, those two things seem to be mutually exclusive."

Sony have been under pressure to drop the price of the PlayStation 3 for some time now. But despite consistent rumours suggesting a cut was imminent, Sony have continued to deny anything was in the pipeline.

During the conference call DeMatteo outlined GameStop's sales predictions of 33.5 million units, which had taken price cuts from both the Japanese manufacturers into account.

"That assumes that there will be price cuts on the PS3 and potentially one on the Wii. It's hard to tell if we actually need a price cut on the Wii to get to our numbers. There are some price cuts built into that assumption, but not until the third quarter."

With E3 just a week away, the media focus is firmly on Sony who are widely tipped to introduce a cheaper PS3 either at the conference, or in the months following the show.

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25 Comments

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Pretty sure we will see a PS3 price drop, at least in some regions. When you can get 2 Xbox 360's or both a Wii and a 360 for the same price as a PS3 (as you can in Australia), then it's time for the expensive one to come down in price.

I don't forsee a price cut on either. Sony can't afford it, and Nintendo simply doesn't need to do it. The Wii right now is killing everything in America other then the DS (which is also a Nintendo product). I don't entirely understand the sudden 261k drop in sales in April, but it's been selling well over half a million each month - how much more does it possibly need to sell in a non-holiday month?

No, I don't think any of them will recieve a price cut this year. Sony are still making losses on every PS3 sold, and Nintendo have been complete cheapskates with the Wii; it hasn't had the price cut at all since it came out in 2006.

Say you just started making a profit now per unit, you're still in the red total. All that initial R&D spent, then the cost of setting up factories, supply chains, etc etc etc.

It'll be years before sony makes all that back and can say the PS3 made them a profit.

Any ps3 price cut later in the year will have a 360 cut follow as well, Sony can't hope to match the prices of the Wii and the 360 anytime soon. All they'd be doing is losing even more money by cutting sooner than they can in the hopes of picking up sales.

Hopefully all console makers drop their controller prices. Also, bring the games down $10, since this generation's games are so buggy *cough*fallout3*cough*.

Well, the PS3 is a bit on the expensive side, but on the other hand it's got wireless, a hard drive, and full quality HD video, and is completely quiet, which is important for movies and games with ambient environmental sounds, etc. It's a real high quality experience. If it comes down in price, it would be awesome.

I think the Wii will still sell at its current price.

But I dont need or want wireless LAN. Give me a cheaper version without wireless please. I also dont need or want Blu-Ray in my console as I've got a separate player, again give me a console without Blu-Ray for less.

TCLN Ryster said,
But I dont need or want wireless LAN. Give me a cheaper version without wireless please. I also dont need or want Blu-Ray in my console as I've got a separate player, again give me a console without Blu-Ray for less.

Assuming the reason you are buying a PS3 is to play PS3 games, you most certainly will need that BR drive in the PS3. All disc based games for the PS3 are on Blu-Ray discs.

SiLENT H3RO said,
LOL I was just going to say that. Why is this even news?

Because if people were picky on what is news then we wouldn't have anything to discuss.

Honestly, I expect GameStop to start cutting stores soon. There are 5 here, and every one I go to is generally empty or has one or two customers browsing.

lol, down here in Houston, there's a GameStop literally within the same parking lot as the other one.

Oddly enough, both always seem to have people in them.

We have a couple of those situations in KC. I think they closed one, but for a while there was a Gamestop inside of a mall, and right across the street from the mall was another Gamestop. The one in the mall used to be another story that was bought out though, I believe.

LOL, here we've got 4 Gamestops in the same mall.

Two Gamestops on a second floor, two on the first floor.

Marshalus said,
We have a couple of those situations in KC. I think they closed one, but for a while there was a Gamestop inside of a mall, and right across the street from the mall was another Gamestop. The one in the mall used to be another story that was bought out though, I believe.

Yeah, that's what happened with one of the game stores that was close to the first; it just got bought out is all.

There's also a GameStop here at one of our smaller malls, with one right across the street as well.


I don't think GameStop closed all the stores from EBgames that they purchased and probably are still in the process of deciding which ones are going to be best to leave open.

macrosslover said,
I don't think GameStop closed all the stores from EBgames that they purchased and probably are still in the process of deciding which ones are going to be best to leave open.

They didn't here. The EbGames stores (2) were converted to GameStop. They then bought out Rhino Games and turned it into a GameStop store, too. They are all full of rude employees that don't appear to like their jobs.

GreyWolfSC said,
Honestly, I expect GameStop to start cutting stores soon. There are 5 here, and every one I go to is generally empty or has one or two customers browsing.


Actually GameStop's sales have been up during this economically difficult time. It seems counterintuitive but true. I suppose more people are staying home and playing games? I can't explain it but it's true.