PS3 price cut to help Sony break even

Takao Yuhara, senior vice president of Sony Corporation, has hinted that a PS3 price cut could be announced by April next year as the company attempts to reduce its losses.

As reported earlier this week, Sony's games division lost EUR 343 million in the quarter ending December 31.

Speaking to the New York Times, Yuhara said the company plans to ensure that the division is no longer making a loss by the financial year ending March 2008. He went on to add that "such factors, including price cuts to some extent, are factored in" Sony's strategy for breaking even.

However, Yuhara declined to offer any further confirmation or details of when a price drop may occur, simply stating: "We may look at the price as part of our strategy to expand the market when the time is right."

He warned that Sony's operating loss for this financial year could exceed the forecast of YEN 200 billion (EUR 1.23 million), blaming higher than expected costs for advertising and cargo transport after the company was forced to air freight rather than ship stock.