In a report by Bloomberg financial news service, Ubisoft president Yves Guillemot stated his opinions on the next-gen consoles, particularly those on the PS3.
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According to the report, Guillemot states that while there will be an “enormous demand” from the PS3’s initial fans, he is concerned that the system’s price would detract customers after system launch.
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In a suggestion to counteract this problem, Guillemot stated that Sony should drop the price of the system in 2007 to drive sales over the long run. This would put Sony in a more competitive stance against Microsoft’s Xbox 360. Even this may not even be enough, as it is speculated that Microsoft will drop the price of its console to make it more attractive compared to the PS3. Microsoft, however, has denied any such plans.
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The possibility of a price drop for the PS3 may prove to be a far fetched one, as it is rumored that Sony is already taking a big loss on each console. This is due to inclusion of such technologies as the Blu-ray optical drive and the Cell processor. Considering the investment already made in the PS3 development and production, it is uncertain if Sony will have the financial stability to make such a price cut.
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Gulliemot concluded his comments stating that he agreed with Microsoft chairman Bill Gates that 2007 will be a "crucial year" in the next-generation console competition.