Konami sees little PS3 price cut impact

LOS ANGELES (Reuters) - Sony Corp.'s (6758.T: Quote, Profile, Research, Stock Buzz) $100 price cut for the PlayStation 3 is not enough to turn the fortunes of the game console, which has suffered slow start, an executive of game software maker Konami Corp. (9766.T: Quote, Profile, Research, Stock Buzz) said.

Sony on Monday cut the PS3 price to $500 in the United States, in a bid to stir up lackluster demand. But it still costs twice that of Nintendo Co. Ltd.'s (7974.OS: Quote, Profile, Research, Stock Buzz) Wii console, whose $250 price and motion-sensing controller have made it a best-seller despite its lack of cutting-edge graphics.

"I wonder if Sony can win back user support by the price cut of just $100," Kazumi Kitaue, the head of Konami's North American and European operations, told Reuters in an interview ahead of this week's E3 video game industry trade show.

"I don't expect a substantial impact ... With $500, you can buy a personal computer."

Its high price and a lack of attractive software have been cited as major reasons for the PS3's plight.

Kitaue said Konami may need to expand the target hardware for its blockbuster fighting game "Metal Gear Solid", which has so far been developed for Sony's PlayStation machines, to other consoles in the future to recoup development costs.

"Since 'Metal Gear Solid' was born for the PlayStation, we would like to keep it a PlayStation game. But we might have to take some steps," Kitaue said.

Konami plans to launch "Metal Gear Solid 4: Guns of the Patriots" for the PS3 during the current business year to March 2008.

Kitaue also said operating profit at Konami's game division is likely to grow in the next business year starting April 2008, following estimated 5 percent growth for the current year, as the user base for new consoles -- Microsoft Corp's (MSFT.O: Quote, Profile, Research, Stock Buzz) Xbox 360 as well as the Wii and PS3 -- expands.

"Next year is still a growth period. I think we will grow, and so will the industry," he said.