Analysts Debate PS3 Price Cut’s Impact on Vita

One week ago, Nick and Anthony discussed whether the recent price cut on the PS3 would be a problem for the Vita, considering it will now launch at the same price as the home console. While they were both happy the cut happened, they recognized that it could cause some people to question the value of the handheld.

Some analysts have now shared their thoughts on the cut, saying that the cut won't impact the sales – mainly because the market is so small anyway.

Speaking to Industry Gamers, Wedbush Securities' Michael Pachter commented:

I'm not sure that they are trying to sell both to the same person as alternatives to one another. People who want both will buy both. People with neither are more likely to buy a PS3, people with a console already might be more likely to buy Vita. The market for Vita is pretty small, given that it's an expensive dedicated handheld with primarily hardcore games.


EEDAR's Jesse Divnich then said:

I don't believe the PlayStation 3 price drop will impact the perceived value of the $249 Vita. With the growth of the tablet and smartphone market, I believe consumers are more likely to compare the $249 Vita to a $499 iPad tablet than a PlayStation 3.


Back when the Nintendo DS launched at $149, the GameCube was only $99, and that had little impact on the success of the Nintendo DS. The PSP launched at $249, while the PS2 was priced at $149. I truly believe that despite sharing similar brands (and games), consumers treat the home and portable markets separately. Bottom line, I don't believe the announcement of the PS3 price drop will impact potential sales of the Vita.


Colin Sebastian, from RW Baird, agreed:

I think the markets are largely different, but I would agree that any dedicated handheld game device faces an uphill battle.


Do you agree with the analysts?