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Weak Pound forces Sony price rises

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Weak Pound forces Sony price rises

But firm pledges not to raise the price of its PS3 console for UK traders

Leading global electronics manufacturer Sony has confirmed that the lessening value of the Pound has forced it to raise the trade price of many of its products – though it has insisted that the price of its PS3 is staying put.

The Pound has lost 40 per cent of its value against the Japanese Yen since the credit crunch ensued, meaning that all overseas firms now effectively make less money from the UK sales.

Speaking to Videogamer.com, a spokesperson for Sony UK stated: “Sony UK can confirm that in the past 48 hours it has communicated to its trade channel that due to adverse changes in the Yen/Euro and Euro/Pound exchange rate over the last six months, and with this uncertainty set to continue into 2009, Sony will increase the trade price of a number of products over the coming months.

“The precise level of price increases has not yet been agreed, but it is likely that the vast majority of products affected will see increases of significantly less than 33 per cent. As these testing trading conditions continue, Sony does not believe that it will be alone in taking this form of action.”

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Best not...

posted by Jimothy Dec 03, 2008 at 3:14 pm
1

"But firm pledges not to raise the price of its PS3 console for UK traders"

I think they'd be shot if they did! :-)

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Could this be Sony's first step at:

posted by koti Dec 03, 2008 at 3:18 pm
2

Edging out their distribution and retail partners in favour of DRM in both boxed and digital format?

Following two credit downgrades in just over two years, it's no secret that the company is on far from solid ground - much like the rest of commerce the company must do what it must to survive but with Sales Directors a go go prematurely predicting these moves as much as two years a go you can only summise that their strategy is two fold - to drive forward the evolution of digital entertainment and survive the credit crunch.

Everyone prepare to tighten your belts again - it's time to stop eating and other unnecessary luxuries.

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Re: Could this be Sony's first step at:

posted by Chris M Dec 03, 2008 at 3:56 pm
3
Chris M

Yet, the pound is back on the rise again, significantly so - This is very familiar in retrospect to the petrol nonsense we've all just been through...

Already their Hardware is twice the price of it's main Rival, if they raise the hardware price, they're out of the battle/war.

Sony desperately trying to claw in extra money after being increasingly muscled out of the console market by low sales (due to high prices). So instead of reducing prices/margins and increasing sales quantity, they work the other way round... Hmmm, good idea Sony! That's really worked for many other companies... *cough*

Next year, MS and Nintendo alone for the Xmas battle?

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Re: Re: Could this be Sony's first step at:

posted by Jungle Dec 03, 2008 at 4:11 pm
4
Jungle

'Yet, the pound is back on the rise again, significantly so - This is very familiar in retrospect to the petrol nonsense we've all just been through...'

Chris M.. nice post hehe.. but the pound is weaker than its been in years. See graph;

http://www.exchange-rates.org/history/JPY/GBP/G" onclick="window.open ( this.href ); return false;" class="comment_url" >http://www.exchang...GBP/G

Note the *downward* trend (crash) of the graph..

And if interest rates are reduced the pound will be worth even less soon.

Hope youre not planning a trip abroad next year!

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Re: Re: Re: Could this be Sony's first step at:

posted by Hamish Dec 03, 2008 at 9:50 pm
5
Hamish

Chris also misses the point that this news does not really effect PS3 - it effects everything but PS3.

In short, you'd be surprised how currency fluctuations will cause lots of companies to raise prices. Even the cost of basic equipment like toasters and kettles will go up - in fact all electronic products will rise over the next year.

Consoles won't go up in price, but any planned price reduction may now be put on hold until currency situation improves....

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