Nintendo Wii and Sony PlayStation 3 to See Price-Cuts in Q3 – GameStop

From X-bit Labs: GameStop Corp, a leading video game retailer, said during a conference call with financial analysts that it would expect Nintendo and Sony Computer Entertainment Inc. to reduce the pricing of the Wii and the PlayStation 3 video game systems in the third quarter of 2009. The retailer believes that economic environment as well as shipments projections will force both companies to reconsider their prices.

“There will be price-cuts on the PS3 and potentially one on the Wii. It is hard to tell if we actually need a price cut on the Wii to get to our numbers. There are some price-cuts built into that assumption, but not until the third quarter,” said Daniel A. Dematteo chief executive officer of GameStop.

David W. Carlson, chief financial officer of GameStop, said that as a result of the economic recession, the company now predicts that 33.5 million video game consoles will be sold in the USA this year, down 1.5 million from 35 million units.

“The hardware price points, where they are at right now, given this economic environment, are potentially too high or are too high. If the platform holders are going to make the numbers that they forecasted for the year, those prices would have to change. So, I am assuming their goal is to still make their numbers. So, I am assuming therefore that [prices] would have to change,” added Mr. Dematteo.

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