In an interview with GameInformer magazine, Sony Computer Entertainment of America (SCEA) CEO Jack Tretton denied a PlayStation 3 price drop in 2007. According to Tretton, Sony cannot afford a price drop this year, due to the increased research and development cost that went into the new console. "There"s a heck of a lot more under the hood and it costs us more money to make it," the CEO said. Tretton insisted that the fact the PS3 is the costliest next generation console is irrelevant: "I think the consumers that get their hands on a PlayStation 3 clearly see the value and not only want to buy one for $599, in some instances they"re willing to pay ridiculous prices to buy one on eBay." The Sony CEO did not, however, mention that the eBay PS3 craze is long over.
It seems that Sony is waiting for PS3"s game library to expand which should make the system appear as a better option. Lowering the price now would result in Sony losing even more money per console, but at the same time, sales would improve. A bigger user base would result in more games being bought, which means more money for Sony. A smaller user base could result in third-party developers being unwilling to develop exclusive games for the platform. I"m not ruling out a price drop though, no manufacturer will announce a price drop too early or it will cause current sales to drop. Needless to say, Sony isn"t in a position for a drop in sales.