PS3 Price Cut in August Timed with Madden Launch?

With publishers and retailers having come and gone to E3 this past week, having seen no sign of any console hardware price cuts, the industry is starting to get antsy. Sales in the U.S. are expected to drop yet again in May by as much as 17% and movement on hardware pricing can't come soon enough, especially on the still too expensive PS3. 

The good news is that Sony may be preparing to lower the price on PS3 this August in order to take advantage of the launch of EA Sports' Madden, which is always an event unto itself. Sterne Agee analyst Arvind Bhatia reports in his latest industry note that “industry sources indicate Sony is planning a $100 price cut on the PS3 in mid-August, just prior the launch of Madden (8/18) and the start of the back to school shopping season. This will naturally be a positive for the industry.”

IndustryGamers sure hopes these sources are right. The industry needs cheaper consoles right now to keep its momentum from 2008 strong. And if Sony does drop the price on PS3, it could be a catalyst for both Microsoft and Nintendo to slash prices on the Xbox 360 and Wii, respectively.  This in turn should help 2009 set yet another sales milestone for the games industry.

“The industry is alive and well. While software sales for the first half of 2009 are expected to be down mid-single-digits, we believe the second half, in contrast, will likely be up 10% to 15% driven by a robust lineup, easier comparisons and potential price cut(s),” added Bhatia.