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Sony under 'major pressure' to cut PS Vita price, 'risks failure'

Japanese analysts point to handheld price war after 3DS slash

Sony Computer Entertainment is under "major pressure" to reduce the launch price of PlayStation Vita following a cost reduction announcement from Nintendo.

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That's according to Tokyo-based Ace Securities analyst Hideki Yasuda, who told Bloomberg the PlayStation firm risks "major failure" if it doesn't price its upcoming handheld - which is due out in Japan this year and in US and Europe in 2012 - competitively.

"Gamers are increasingly anticipating Sony to lower prices, especially after the 3DS cut," Yasuda told Bloomberg. "Sony is under major pressure to cut the price of the Vita or risk a major failure."

When it does launch in the UK, Vita will set you back £229 for the Wi-Fi model and £279 for the 3G version.

Sony chairman Kazuo Hirai signalled yesterday that the company won't engage in a price war with the Nintendo 3DS, which is set to have its RRP slashed by a third later this month.

But not all Japanese analysts believe Sony should react to Nintendo's dramatic action. Nomura Holdings man Shiro Mikoshiba believes a higher price point for Vita fits with its target audience.

"The customers Sony is targeting with its Vita are those willing to spend a lot of money," he said. "That's a valid strategy even if the volume's low as long as it can sustain the higher price."

[ SOURCE: Bloomberg ]

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