Sony's Stringer Admits PS3 Price Too High

Sony CEO Howard Stringer admitted in an interview that the price of the PlayStation 3 needs to come down, but provided no estimate as to how much of a price drop consumers can expect.

"That is what we are studying at the moment. That's what we are trying to refine," he told the Financial Times on Thursday. He also admitted that the Nintendo Wii had broad appeal to consumers, and acknowledged his success.

"I would be the first to say to you that Nintendo Wii has been a successful enterprise and a very good business model compared to ours," he said, adding much of its success had to do with price.

Sony has lowered the price by 20 percent in Japan ahead of its November launch, however it did not lower the price elsewhere. Even with the price cuts, the PS3 is still struggling, being outsold by the Wii there by a five-to-one margin.

Sony's gaming unit is increasingly becoming a liability for the company, and is beginning to cause concern among investors. For the fiscal year ending March 31, the once powerful unit posted a staggering $2 billion loss.

High losses due to the PS3 are drowning out successes in other aspects of its business, including strong HDTV sales and improving performance in its Blu-ray division.