... And for good reason, too. The company is bringing out two PS3 exclusives this year: Quantum and Ninja Gaiden Sigma 2. Considering its third-party status, Tecmo is really risking a lot by abandoning a traditional multiplatform approach.

"Whenever I discuss this with Sony reps I always ask them: 'Please cut the price'," Tecmo's Kenji Matsubara told CVG. "Sony introduced cutting-edge technology in the PS3, that's why people in the industry accept that the PS3 cost is so high, but we'd welcome a price cut."

That's certainly a change of tone from a different third-party publisher, Activision. That company most recently made waves when it half-heartedly "threatened" to remove support for PlayStation products. In spite of the difference in approaches, it's clear that the PS3's price needs to be lowered. Not only does the customer want it, but publishers are demanding it as well.

Yes, we know -- another console price drop story. Our contempt rivals your own, we assure you. However, this time around, the report comes from a source that's proven to be eerily accurate on hardware announcements in the past -- Ars Technica's unnamed "mole," a prophetic figure who managed to predict the capabilities of the PSP Go, the release of the red Resident Evil 5 Xbox 360 bundle and, most notably, last fall's universal 360 price cut.

On the Sony front, the mole is claiming that the 80GB PS3 will become scarce over the next two months, being mostly replaced by the 160GB model. As the larger model continues to sell into the fall, Sony will supposedly simultaneously announce the oft-rumored PS3 Slim and the even more oft-rumored price cut. The mole was unable to discern the exact amount that would be shaved off the price of the console, but was confident it would provide Sony with a much-needed sales boost.

For Microsoft, the mole expects the Pro system to be ushered off store shelves with the help of a few attractive Pro bundles which will crop up over the next few months. The Pro will be replaced by the 120GB Elite, which will supposedly undergo a price cut in September, followed by the release of its own bundles in October. With downloadable titles becoming a focus for both companies, turning the spotlight on consoles with larger hard drives makes sense -- but only time will tell if the Ars mole's sterling predictive reputation will persevere.

Activision CEO Bobby Kotick is starting to believe that there isn't enough incentive to release games on the PlayStation 3 or PSP. Proving how confident he is that fanboys don't have his email address, he told The Times, "I'm getting concerned about Sony; the PlayStation 3 is losing a bit of momentum and they don't make it easy for me to support the platform. It's expensive to develop for the console, and the Wii and the Xbox are just selling better."

Kotick openly called for a price cut on the PS3, citing a probable drop in attach rates. We can only imagine how Sony feels about being told its prices are too high by the CEO of the company behind (according to retailers) the $200 Band Hero box.

When we look at 2010 and 2011," Kotick said, "we might want to consider if we support the console - and the PSP [portable] too." It's worth noting that, according to this Gamasutra report, both Call of Duty 4 and World at War moved fewer copies on PS3 than on Xbox -- but both broke a million on PS3, which would lead us to consider them "hits." Update: Sony comments, after the break.

[Via Gizmodo; thanks, Ted]

A PS3 price drop is an inevitability. The only questions are when, and how much. While it may seem like a no-brainer, Sony must carefully plan out a price drop if it wants to get anywhere near its goal for profitability. Outspoken analyst Michael Pachter notes that Sony could lose $350 million of profits on a price cut of just $50 (accounting for 6-7 million systems sold after a reduction). While a cut to $299 would be far more palpable to gamers, that would cost the company at least twice as much -- would Sony want to incur those losses during a difficult financial market?

Considering the exorbitant price tag on a price cut, it's likely Sony will choose the smallest cut possible. Pachter suggests that a $350 bundle, which includes a first party game (such as Killzone 2) is the likeliest solution for the company, predicting the drop will happen in October -- just in time for the holiday season.

PRICE DROP?! Okay, not really. amazon.com is having a Gold Box deal today which drops the price of the standard 80GB PS3 down to $349 -- that's a savings of $50. We're certain most (if not all) of you already have a PS3, so this is where you'll have to evangelize a bit. Tell your friends why they should join the PlayStation Nation. Talk about the great games already out on the system: Uncharted, MGS4, Killzone 2, inFamous, etc. Then, do a Jack Tretton and talk about PS3's upcoming games: God of War, Final Fantasy XIV, Heavy Rain, etc.

Yeah, you'll become a salesperson, but think about this key benefit: the more people that actually own PS3s, the less stupid "PS3 has no games" comments you'll see online. And really, isn't that a "win" for everyone?

[Thanks, Kenny M.!]

It looks as though Sony is planning to introduce yet another PS3 SKU in the coming weeks. A reader has tipped us to a new addition to Best Buy's product database -- a "limited edition" PS3 bundle that includes a 80GB system and two games. It sounds similar to Target's post-GDC PS3 bundle, which included MotorStorm and Resistance.

According to the database, this new SKU is scheduled for release on June 9th, one week after the start of this year's E3 Expo. The listed price for the bundle is $399, the current price for a PS3 system now. Analysts have repeatedly stated a PS3 price cut is in the works, but this new SKU may suggest otherwise. Conversely, Sony may opt to drop the price on a "bare bones" bundle, while offering this new "elite" package at the now-standard price.

For now, this new bundle may be exclusive to Best Buy, similarly to Target's post-GDC bundle. The UPC listed uses a prefix that is typically used in Best Buy's PlayStation products. If Sony packages some newer high-profile games with the system (we have a few in mind), the $399 price point might be a bit more attractive. Oh, and Sony, please don't bundle Lair and Haze with the system, kthanks.

Sitting atop his throne made with the profits from used games, GameStop CEO Daniel DeMatteo said in an investor call that he believes a price drop for the Wii and PS3 is due. Edge reports (echoing Seeking Alpha's transcript) that DeMatteo thinks, given the current economy, that console prices are too high. He believes that by the third quarter there need to be "price cuts in order to get the hardware moving" to where the company's projections expect them to be.

Dematteo had previously mentioned in a CNBC interview that he'd like to see a $100 cut for the PS3, the same figure that Lazard Capital's Colin Sebastian is expecting by fall. As for a Wii cut, Nintendo doesn't really need one, even as it cut manufacturing costs by 45 percent. If Nintendo does cut the price of the Wii, it would almost feel like charity.

Critical darling (and Wiimake) Klonoa has seen a UK price cut, prior to even being released to stores. The upcoming Nintendo Wii title is scheduled to release on May 22, but multiple retailers have cut the RRP nearly in half. Play.com UK is offering the PS1 remake for £14.99 while Amazon.co.uk is selling the title for £17.99. The suggested retail price is listed as £24.99.

If the price slash continues after release, Klonoa could be one of the fastest cuts we've ever seen to to a Namco title. Unless you count the cut to our hearts when Star Wars characters were unceremoniously introduced into the world of Soul Calibur. Which we do.

[Via DarkZero]

According to Lazard Capital Markets analyst Colin Sebastian, the PS3 is due for a price cut sometime between E3 and the end of the summer. More specifically, Sebastian expects a cut of $100 from the console's current $399 price tag, putting it at a much more consumer-friendly $299. Anything less than $100, Sebastian told Gamasutra, "would likely be perceived negatively by the market."

Given that both the Wii and Xbox 360 are priced at or below the $299 mark (with the exception of the Xbox 360 Elite), we'd say Sebastian is right to claim that any cut less than $100 would be unacceptable. Taking the current economic conditions into consideration, it's likely difficult for most people to justify the $399 price tag when there are comparable consoles to be had for less.

Sebastian joins a cavalcade of companies and analysts making similar predictions lately, noting that it would be a win for everybody. Sony could push its upcoming first-party lineup into more gamers' hands, publishers would gain a larger audience and retailers would enjoy better margins. Sebastian says that "the next 12 months are critical to regain market share" for the Playstation, especially with demand for the Wii finally slowing down and Microsoft reportedly prepping its own motion control interface. And, of course, with Sony aiming to increase PS3 sales by 30 percent this year, a price cut certainly wouldn't hurt.

Are you expecting Sony to make the megaton announcement at E3? Y'know the one we're talking about. The price cut? Well, THQ doesn't share that vision. At its investor call earlier today, THQ's Brian Farrell cast doubt on a PS3 price announcement at the annual trade show. "We're not expecting a price cut at E3, but we do expect one later in the year."

A price cut for the PS3 will help THQ's sales portfolio, which is still largely rooted in games for the "core gamer." PS3 software sales represented about 13% of THQ's revenue for fiscal 2009, an increase from 8% the year before.

For once, someone at GameStop wants customers to be able to pay less. Of course, the items CEO Dan DeMatteo thinks are overpriced happen to be consoles, which don't have much of a retail markup -- so dropping the price on them would only give consumers more to spend on stuff with bigger markups.

The console most in need of a cut, according to CNBC's interview with DeMatteo? The PlayStation 3. "That price point is clearly an issue in this economy," DeMatteo said of the $399 PS3 price. And DeMatteo would prefer a $100 cut over a $50 cut when it does happen (which CNBC thinks will obviously be this E3). "I don't know that $50 gets you that much," DeMatteo said.

The executive also sees the possibility for a Wii price drop as soon as demand drops. "I think [demand for] the Wii could slow down to the extent that Nintendo may want to cut the price," he says. "Nintendo has it within its arsenal to do that. The component costs have come down considerably. They used to break even on the Wii, but now they're making a considerable margin."

If DeMatteo's prediction of a "key" Nintendo game out this year is true (and if it turns out to be a Wii game), the demand may stay steady. The CEO told CNBC, "They haven't given us any insight, but they have told us to reserve [shelf] space." Both CNBC and IGN speculate that it could be a new Wii Zelda. What about the Zelda game that we already know is coming out? Nintendo already told us about one. And it's coming out on a console with better sales than the Wii. Doesn't that count?

Following Credit Suisse analyst Koya Tabata's estimation that Wii manufacturing costs are down 45 percent, Nintendo has come out from its corner swinging, ready to put down any and all speculation that a price cut for the console is due soon. In speaking to Edge, Nintendo said the depreciation of the U.S. dollar and British pound is also a factor, as from "launch in December 2006 to December 2008, the value of the pound fell by 43 percent against the yen," and, in the same period of time, the U.S. dollar and euro fell against the pound 22 and 18 percent, respectively.

Ed Barton, analyst for Screen Digest, thinks that if Nintendo is to cut the console's price, it could first happen in Japan if "supply has truly equaled demand." Barton points to Nintendo's next financial earnings report, where any and all reduction in manufacturing costs should be evidenced in the company's operating profits. Though trying to gauge an improvement in Nintendo profits is kind of like finding a giant needle in a stack full of giant needles.

Since the Wii released in November of 2006, it's progressively become a more profitable venture for Nintendo. Not just because it has been constantly flying off retail shelves, but because Nintendo has managed to drastically cut down manufacturing costs during its life, Koya Tabata of Credit Suisse suspects. In fact, Tabata says costs are down a whopping 45%, which could mean Nintendo is banking much more than the previously reported $6.

Of course, any talk of reduced manufacturing costs is inevitably going to lead to talk of a price cut, which Tabata says is a real possibility. Emerging markets could be the first to see a price cut, Tabata commented. With Sony hoping to take market share away from Wii with its $99 PS2, it might be the right time for Nintendo to trim some fat.

[Via Eurogamer]

Analyst Jesse Divnich of EEDAR believes that the PS2 price drop to a Franklin will boost US sales of the console by 30 percent. Divnich's report also estimates that PS2 software will maintain an 18 percent market share, rather than drop down to 16 percent had there not been a cut.

Gamasutra also spoke with analyst Matt Matthews, who points out that any consumer waiting for the PS2 to reach $100 is "cost-conscious" enough to buy games from the used bin at GameStop, meaning those consumers aren't likely to help new software sales. Apparently, Sony's Jack Tretton agreed with this notion last summer in an Edge interview, when he asked, "If that $30 was the difference between buying a console and not buying a console, how many games are you going to sell to that person?"

At the time, he questioned how strategically important that consumer really is. Apparently, nine months and a fiscal crisis at the company is enough to change some minds.

If you were holding your breath for Microsoft's response to the PlayStation 2's recently announced $99 price point, it's now safe to exhale -- Microsoft vice-president of interactive entertainment business Chris Lewis recently issued a calm, cool and collected statement regarding the discount, stating, "The future lies in the growth of current generation consoles," a future in which he's confident the Xbox 360 will continue to trump the PS3.

Considering the original Xbox has been discontinued for nearly three years, Microsoft hasn't had a horse in the sixth-generation race for quite some time now. Still, it'll be interesting to see if the bargain-priced PS2 can take a bigger chunk out of current-gen console sales in light of the not-so-awesome state of the economy.