Last week's surprise price cut of the Nintendo 3DS has raised a lot of questions. One of them is if Sony's upcoming PlayStation Vita handheld will also receive a price cut? While it can easily be argued that Sony and Nintendo aren't even competing with one another with Vita and 3DS, many consumers are still watching both companies closely in an attempt to figure out what they're going to purchase.
A recent report from Bloomberg indicates that, at least in Japan, where Vita's predecessor PSP was wildly popular, gamers might not be willing to shell out the necessary cash when 3DS is now so much cheaper. Bloomberg quoted Tokyo resident Yukinobu Takeda as stating quite simply that "PS Vita's quite expensive." And at 24,980 Yen for the cheapest model of Vita, Japanese gamers will be paying approximately $67 more than American gamers for the same handheld.
The Bloomberg article also illuminates the fact that not all Japanese analysts agree that a price cut on Vita is imminent, or even necessary. Hideki Yasuda, an analyst at Ace Securities Co., told Bloomberg that "gamers are increasingly anticipating Sony to lower prices, especially after the 3DS cut. Sony is under major pressure to cut the price of the Vita or risk a major failure." But Shiro Mikoshiba, a Nomura Holdings Inc. analyst, disagrees. "The customers Sony is targeting with its Vita are those willing to spend a lot of money. That's a valid strategy even if the volume's low as long as it can sustain a higher price."
The only thing that's clear is that both Sony and Nintendo are in financial pain right now. According to Bloomberg, Sony's market value has fallen 38% this year (and is facing "an eighth consecutive year of losses"), while Nintendo's market value has fallen 49%. Sony has cut its profit forecast for the year 25%, while Nintendo has cut its yearly profit forecast a staggering 82%.
Do you own a 3DS? Do you plan on a 3DS or Vita? What prices are fair for both units? Does Vita's price really need to be cut to compete with 3DS? Sound-off in the comments below.
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