PlayStation2 Price Drop Hinted

According to a recent story published by the Nikkei BizTech, the PlayStation2 console's price will remain very competitive after the console's release. According to a staff member responsible for research and development at SCE, "SCE will cut the price of the PS2 at the same pace as seen for the previous machine."

The article mentions that while the system will release at a price of 39,800 yen (US$375), market observers are already anticipating it to fall to around 20,000 ($189) by autumn of 2000. Once the volume production system for the PlayStation2 is running smoothly, such a price drop should be relatively easy for Sony. Also, because Sony can generate profits from its software, it can take a hardware cost hit. A source close to SCE told the Nikkei that, "Production of a single CD-ROM is like printing a 2,000-yen bill."

A price drop to 20,000 yen in Japan in autumn could indicate a much lower price for the PlayStation2 when it launches in the US in the fall of 2000. Perhaps a $200 PlayStation2 might not be out of the question.