On the PlayStation Blog, Sony has announced that production of the PlayStation 3 will soon begin in Brazil. For some time now, the PS3 has been produced in Japan, China, and Taiwan, resulting in the units being shipped to Western countries. The consoles will be manufactured in Manaus by Sony Brasil Ltda., with the 250 GB version costing $1,099 Reals ($549.36). Despite a seemingly high price for US consumers, this does mark a price drop for the console through official sales channel though many have pointed out that you can get the console by other means in the country for 899 Reals. 

Sony President Andrew House said that they plan to

 infuse the Brazilian economy with approximately $300 million over the next 12 months. 

With Brazil’s economy continuing to grow and quickly becoming a key player in the world theater, it’s no wonder that Sony wants to cater locally to the country with a population of 200 million. Games like The Last of Us and Grand Theft Auto 5 are getting localized releases in Brazilian Portuguese as well, showing the importance of the country to the company. For US consumers, this may be a further indication of the PS3’s price in the future. With every PlayStation 3 made, Sony also has to factor in shipping from Asia. With the PlayStation 4 looming around the corner with a likely fall release, it’s certain that the PS3 will get a price cut come E3, if not at TGS in September.

With the PS3 still holding a price point around $250-$350 (depending on the bundle), it seems unlikely that Sony could drop the console’s price to a consumer desired $149 without taking a big loss per unit again, something that I’m sure Sony wants to avoid at all costs. By having the consoles produced locally, Sony can save money on each console shipment, allowing them to achieve a lower cost per unit which would in theory allow them to sell the PS3 at a lower price without a drastic financial loss.

I remain doubtful that even with the console produced in Brazil, Sony would drop the price to $149. In all likelihood, the PS3 core console will be offered at $199 while bundles will be around $250. With The Last of Us now launching during E3, don’t be surprised to see it offered as a bundle with the PS3. This then allows the PS4 to be offered at $399 and $499 with a decent enough gap between the two to help separate would be consumers.

Discuss:

Do you think the PS3 will get a price cut at E3 and if so, what price point do you think Sony will offer the console at?

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PlayStation®3 To Be Locally Manufactured In Brazil

New Local Manufacturing Initiative to Drive Significant PS3® Price Reductions for Brazilian Gamers; Reinforces Long-Term Commitment to Brazil Gaming Market

SAO PAULO, May 7, 2013 /PRNewswire/ — At a press conference held in Sao Paulo, Brazil, Sony Computer Entertainment Inc. today announced the local manufacturing of the PlayStation®3 (PS3®) computer entertainment system as part of its commitment to invest in the growth of the gaming industry in Brazil. The PS3 systems are manufactured by Sony Brasil Ltda. in Manaus, state of Amazonas. The suggested retail price of a locally manufactured PS3 (250GB) is $1,099 Reais (MSRP).

Both Andrew House, President and Group CEO of Sony Computer Entertainment Inc., and Jack Tretton, President and CEO of Sony Computer Entertainment America, participated in the event to acknowledge the significant milestone.

“Sony Computer Entertainment continues to invest in the Brazil game market as part of our long-term commitment to the country and its gamers,” said House. “Locally manufacturing PlayStation 3 in Brazil will benefit gamers, retailers and developers. The local manufacture of PlayStation 3 is expected to infuse the Brazilian economy with approximately $300 million over the next 12 months.”

“Brazil is home to some of the most passionate gamers in the world and we’re focused on providing them with the best entertainment experiences that can only be found on PlayStation,” said Tretton. “With today’s manufacturing announcement and the amazing lineup of localized games, there’s never been a better time to join the PlayStation family if you live in Brazil.”

Other announcements included the much anticipated action-adventure game from Naughty Dog, The Last of Us, which will launch in Brazil simultaneously with the worldwide release, fully localized in Brazilian Portuguese. In addition, Rockstar Games’ Grand Theft Auto V will be the first Grand Theft Auto ever to be localized with text into Brazilian Portuguese. During the event, Sony Computer Entertainment also announced a new software bundle for God of War Ascension that includes a 250GB PS3 system and the God of War: Ascension game for R$1,099 (MSRP).

Mark Stanley, General Manager, Latin America, for Sony Computer Entertainment America, who hosted the event, also announced the launch of a major communications campaign that will run in Brazil throughout 2013 as an extension of the popular “Viva Em Estado Play” that has been running across Latin America.

“This communication campaign will inspire millions of Brazilians to immerse themselves in the world of PlayStation. As part of this celebration, we have created an opportunity for 10 Brazilian gamers to each win one of the first PS3 systems made in Brazil,” said Stanley. “What better way to celebrate Brazil’s passion for gaming.”

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