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Tuesday, August 17, 1999

Nintendo, Sony drop console prices to $99

Analysts say lower cost may preserve market share against upcoming Sega Dreamcast

Associated Press
 

   SAN JOSE, Calif. - Prices on both the Sony PlayStation and the competing Nintendo 64 will be cut to $99 as the gaming console companies prepared for the upcoming release of Sega's new Dreamcast system.
   "This is obviously a defensive move in an extremely competitive market," said Chris Byrne, a toy industry analyst.
   Byrne said that the new low prices announced Monday - both dropping from $129 - will allow consumers without a lot of extra entertainment money to buy a console. He said that high-end buyers interested in the best systems will probably replace their existing systems with the $199 Dreamcast, a system reviewers say pushes the entertainment into new, exciting realms with enhanced graphics and sound.
   Analysts said the cuts are also going to help get consoles under more Christmas trees this year.
   "The new pricing is certain to have a positive impact on unit sales during the upcoming holiday selling season," says David Leibowitz, managing director of Burnham Securities.
   Nintendo's executive vice president of sales and marketing Peter Main said the timing is right for his company to gain significant market share.
   But Kaz Hirai, president of Sony Computer Entertainment America, said the PlayStation will continue to dominate the market.
   Nintendo said the price cuts take effect immediately, while Sony said the cuts go into effect Aug. 23.
  
  
  

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