On the back of THQ’s recent financial results, CEO Brian Farrell has stated that he believes Sony will cut the price of PS3 this year, whilst also admitting that the Wii market is slowing.
We are not expecting a price cut at E3 but we do expect one later in the year,” Farrell stated in an investor call transcribed on Seeking Alpha. But again, that’s just our guess – that’s not based on any knowledge from Sony.
We are pleased with Microsoft’s momentum at their price point. We are seeing a little softness in the Wii which we kind of think of the glass as half full here, in that the Wii has been going for an unprecedented amount of time without a price reduction.”
Elsewhere in the call Farrell added that the expensive nature of modern games development means that even an impressive 800,000 sales is rarely enough for a triple-A title to break even.
On the core titles, 700,000, 800,000 units – these days unfortunately we think are over,” Farrell said.
But within the kids segment, the break evens are very low – depending on the title, how many SKUs you do, per SKU your break-evens are, depending on the platform, somewhere between even 100,000 and 400,000 units.”