Sony: No Price Cuts for PS3 Planned

Forget about a price cut for the PlayStation 3 in the near future. Sony's president Ryoji Chubachi said the company currently has no plans to reduce the price of the console in an interview with Reuters.

Analysts had long been speculating that the company would cut the price of the PS3 by at least $100 to become more competitive here in the US. At a price tag of $599, it is $200 more expensive that the premium Xbox 360, and $120 more expensive than the Xbox 360 Elite.

The company is being outsold by the Wii, and in some cases the 360, by wide margins in just about every market, and investors are becoming increasingly more restless as the gaming division continues to cut into the company's successes in other divisions.

Price cuts were seen as the key to alleviate those concerns and propel the PS3 to the top of the heap like its predecessors enjoyed in previous generations.

"If you take a look at how PlayStation and PlayStation 2 have taken off, this is not such an unusual start," he argued. However, at the same time, the gaming industry has grown substantially since those consoles, so comparisons with them may not necessarily be accurate.

The financial markets are also increasingly losing confidence in the Japanese electronics maker. Last week, Nintendo replaced Sony as one of the company's 10 most valuable companies based on market capitalization.