Sony Price Increase In U.K. Will Not Affect PS3

Sony Price Increase In U.K. Will Not Affect PS3

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Sony says that despite a report that a weak Pound will force it to raise prices in the U.K., the cost of the PlayStation 3 will not be affected.

The electronics giant has been hit hard by the ongoing economic downturn, reporting a 72 percent drop in profits for the second quarter of 2008, according to a Telegraph report. Profits have been affected by both slowing sales and the strength of the Japanese Yen, which has gained considerable ground on the British Pound over the past six months.

"Sony U.K. 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 company said in a statement issued in late November. "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."

The increased cost to retailers will not necessarily mean higher costs for consumers, however, as stores continue with efforts to attract customers despite the gloomy economic forecast. A representative of the British Retail Consortium said he expected sellers to squeeze profit margins even tighter and look for cost-cutting measures elsewhere, rather than pass on the higher costs to customers and risk losing them entirely.

But in a spot of good news for gamers, Sony confirmed today with play.tm that the decision "would not translate into a price rise for the PS3." Not a terribly surprising choice, really; Sony isn't making any money on the systems anyway, and with Microsoft appearing to be making gains in the console wars, the last thing the company needs to do is even hint at the possibility of higher prices.

via: GamesIndustry

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This is why the UK is doing badly in this dropping economy, our currency is weak and only stands to get weaker in relation to the euro, the only argument for keeping the pound 10 years ago was security, now that's thrown out the window now Europe has it's own currency.

Our government are lunatics anyway. I'll be leaving when I can.

On the plus side. If it all goes to crap now, I wont have to wait till im a taxpayer to be able to say "I told you so" :-D

In a desperate attempt to increase sales, Sony INCREASES PRICES? and some how this will not effect sales?

hebdomad:
In a desperate attempt to increase sales, Sony INCREASES PRICES? and some how this will not effect sales?

No, you read wrong, it says that they're not going to raise prices. The weak euro won't affect sales and make a price increase. Just thought I'd clarify for you.

It's not surprising, but it's a good move by Sony. By now most people would think that they would increase the price anyway.

EDIT: Though I'm assuming you only read the title? That does seem misleading.
EDIT DOS: Then again, I may be reading wrong. I have been doing that alot lately...

A game console isn't exactly something you can increase the price on without people noticing...

Isn't this a bit like a price cut? It's technically costing less (due to the cheaper currency), so the UK is getting a PS3 price cut.

Jumplion:

hebdomad:
In a desperate attempt to increase sales, Sony INCREASES PRICES? and some how this will not effect sales?

No, you read wrong, it says that they're not going to raise prices. The weak euro won't affect sales and make a price increase. Just thought I'd clarify for you.

They are raising prices on some items, just not PS3s. Which seems mad, since Sony already have a reputation for being overpriced for the same products as their competitors (You could, for example, pay Sony £150 more for exactly the same 40" Samsung LCD panel as you would pay if it had a Samsung badge on it).

CountFenring:
Isn't this a bit like a price cut? It's technically costing less (due to the cheaper currency), so the UK is getting a PS3 price cut.

In relation to other countries? Yes. For British citizens? No.

Break:

CountFenring:
Isn't this a bit like a price cut? It's technically costing less (due to the cheaper currency), so the UK is getting a PS3 price cut.

In relation to other countries? Yes. For British citizens? No.

Yeah, it's more like they're dropping the price of the PS3 for anyone who wants to import one from England.

So Sony will loose even more on PS3s. Great profit they'll be making.

 

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