Sony under pressure from retail to cut margins

With PlayStation prices at an all-time low, Sony are under increasing pressure from retailers to cut their margins. With Virgin, Dixons, Electronics Boutique, Currys and MVC all cutting their game prices to £29.99, independent retailers are feeling increasingly marginalised. However, prices are set to revert back to usual levels on July 15.

Under European law, Sony can't set price points for retailers to sell games, but they can sell their games to retailers at a fixed price. That's where margins come in. Retailers are obviously making a hell of a lot more on a £40 game as opposed to a £30 game, and the multiples can get better deals because they buy in bulk, leaving the smaller retailers shafted.

'The price cut was nothing to do with us,' Sony's Ray Maguire told CTW. 'If stores decide to cut their prices then we can do absolutely nothing about it.'

Apart from cutting your margins so that PlayStation games are priced realistically, naturally.