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Play Station 3 sales down 83%
Sales of the PlayStation 3 have dropped dramatically on the second week of release in the UK, with official Chart Track figures revealing a fall of 82 per cent, GamesIndustry.biz is reporting.
Chart Track data is gathered from 7000 UK retail outlets representing 90 per cent of the software market, including GAME, Gamestation, Play.com, Asda and HMV.
A spokesperson for Chart Track confirmed the figure to GamesIndustry.biz this afternoon, stating: "Yes, sales of PS3 hardware have dropped by 82 per cent."
Last week, Chart Track revealed that the PlayStation 3 had sold 165,000 units in the first two days following the launch, making it the fastest-selling home console in the UK.
"We publish the first week figures because there's such a clamour for them that we can't keep it a secret," said the spokesperson.
This week's software charts revealed that sales of the top two PlayStation 3 titles, Resistance: Fall of Man and MotorStorm, had dropped by over 60 per cent.
Sony Computer Entertainment Europe declined to comment.
Sony cuts price on PSP to $170
It's the first time Sony has officially lowered suggested retail prices on the PSP since its debut in March 2005. Video game publishers and financial analysts have been urging Sony to slash hardware prices in recent quarters.
The cuts come two months after Sony's gaming unit posted a third-quarter operating loss of $443 million, largely due to hefty costs for the launch of its PlayStation 3 video game console.
Although Sony promised business at the gaming unit would improve by the latter half of the fiscal year, the company said declining sales during the October-December period of Sony's predecessor console, PlayStation 2, as well as the handheld PlayStation Portable and PSP game software, hurt quarterly profits at the gaming unit.
Sony's PSP competes mainly against Nintendo's Game Boy and DS. Despite being launched in 2004, the DS -- which some retailers sell for as little as $130 -- outsold every other console in the United States in February, registering 485,000 units sold, according to market researcher NPD Group.
Nintendo has also been a formidable player in next-generation consoles, traditionally a Sony stronghold.
The Nintendo Wii, released in November, sold 335,000 units during the month, followed by Microsoft Corp.'s Xbox 360 with 228,000 units and Sony's PlayStation 3 with 127,000 units.
With its diminutive "Wiimote" -- a motion-sensitive, wrist-mounted remote control -- Nintendo's Wii has been a surprise hit among kids, women and older players, catching on far beyond the "hardcore" gamer niche of young men. The Wii sells for $250, far less than the PS3, which starts at $500.
Jack Tretton, president and chief executive of Foster City-based Sony Computer Entertainment America, said Sony's price cuts were an effort to make the game more affordable to young gamers.
"We have recently seen a steady rise in the number of teens adopting PSP as their primary handheld entertainment system, and we expect the new price will accelerate that trend," Tretton said in a statement.
Sony, which also lowered the price of its higher-end PSP Entertainment Pack 20 percent to $200, will launch a print and online advertising campaign targeted at teenagers.
In late November, Wal-Mart Stores Inc. slashed prices on the PSP to $170. Although world's largest retailer didn't release sales numbers, analysts said the promotion was a success, and they were encouraged about Sony's official new prices.
"We expect a modest step-up in PSP unit sales during an otherwise seasonally slower period for the video game industry," Colin Sebastian, senior research analyst at Lazard Capital Markets in San Francisco, wrote in an investor note.
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