“Whenever I discuss this with Sony reps I always ask them: ‘Please cut the price’… From a publisher’s point of view we would welcome a price cut for PS3 and we are waiting, definitely… It’s definitely a way of boosting the PS3 market, but it’s Sony’s strategy and I don’t know their cost structure. Sony introduced cutting-edge technology in the PS3, that’s why people in the industry accept that the PS3 cost is so high, but we’d welcome a price cut.” – Kenji Matsubara, Tecmo Koei
For publishers and developers the need for a price cut is clear. The cheaper the price, the more consoles that are sold and the higher software sales will be. For the hardware manufactures there is a lot more to worry about.
-Justin
