Heavier price tag keeps Sony behind rivals

Sony was surely overconfident when it proclaimed that it was confident the July figures would reveal that its PlayStation 3 outsold the Microsoft Xbox 360 in the month. According to the latest NPD figures Sony’s much-hyped PS3 remains in third place behind the Nintendo Wii and Microsoft Xbox 360, globally.
However, July was a fine month for Sony’s game division as it sold the maximum number of PS3 units, since its November 2006 debut. 159,000 consoles were sold in July compared to 98,500 the month before.
Clearly outnumbering Sony, Nintendo sold 425,000 units of Wii and Microsoft managed the sale of 170,000 Xbox 360s during the month.
The sale figures are mainly driven by the difference in their prices and the cost factor also governs the rise in PS3 sales. A $100 price drop in Sony’s PS3 went into effect early July, sparking a scope for higher sales.
With fans lured towards the PS3 discounts, Microsoft suffered its second-worst month this year, for the console. It was the only one to have reported lower sales than the previous month.
While Sony and Microsoft fight it out for the second place, Nintendo clearly sweeps the market riding on its less powerful processor, simpler graphics and gyration-inspiring game controller. July sales of the Wii exceeded the June figures by around 50,000 units.
Although it is well-known that the PS3 is only being held back by the heavier price tag, Jonathan Fargher, Sony Computer Entertainment Europe representative, said the Company does not intend to slash prices to win market share “We believe it is all about content on the PS3. We will be making a series of announcements and releases that we are sure will act as a great incentive for people thinking of buying a PS3.”
The handheld gaming devices also reported weaker sales than June. Nintendo’s DS sold 405,000 units while Sony’s PSP sold 222,000 units in July.
The game market is under serious modifications as according to NDP through July, domestic sales of hardware, software and accessories were $7 billion, up from $5 billion for the first seven months of 2006.