Videogame competitors Sony and Nintendo on Tuesday slashed the prices of their popular videogame players by 10 percent.
Market leader Sony (SNE) said the price of the PlayStation, previously US$149, will be $129 starting 30 August. No. 2 Nintendo, which had already been discounting its Nintendo 64 player through a rebate program, followed suit. The N64 will now be offered for $129.95 instead of $150.
Sales of both systems are going well, industry executives said. Both companies are cutting prices to keep that sales momentum going.
"They make a lot more money on the software than the hardware," said Mike Wallace, a senior analyst with Warburg Dillon Read. "I expect them both to stay at $129 this year."
Software sales for the PlayStation have doubled this year, Wallace said. Hardware sales could reach 8 million to 9 million units, up from 7 million last year. Wallace said he expects Nintendo to sell 6 million to 7 million units this year, with software sales up 35 percent this year so far.
The price cuts come just weeks before No. 3 hardware maker Sega is scheduled to release its next-generation machine in Japan. Dreamcast -- featuring a 128-bit processor, super-fast 3-D graphics, and enhanced sound capabilities -- will hit Japanese stores 20 November. It's not slated to arrive in North America until fall 1999.
