Business Week recently interviewed Michael L. Savner, a Bank of America analyst, who doesn't think a price cut for the PS3 will make the matters any better for Sony. Although he remarked on the obvious hurdles (high prices, Blu-ray, lack of exclusives at launch), the bulk of the interview focused on how the PS3 is hurting third-party developer sales.

So why are weak PS3 sales so bad for the U.S. game publishers? Independently, the implications over the short run are not necessarily significant. However, viewed at a macro level, the share shift currently taking place where the Wii, and even the PS2, are the share takers, our concern is that if software sales also begin to skew along those lines that publishers will be trading higher wholesale revenue (PS3 and Xbox 360) for lower wholesale revenue (Wii and PS2).

Moreover, this is coming at a time when publishers are continuing to increase R&D spending for the more expensive platforms. Lastly, while certain 3rd party publishers like Ubisoft, EA and Activision have shown some success on the Wii, Nintendo remains the dominant publisher on its platform."

I can hear the flurry of commenters typing their, "Kotaku is Sony-bashing again" comments right now. Please remember that these are words coming out of an analyst who is employed by Bank of America. This is a company that will close your bank account, put two cents in it a week later ("M'am, you accrued interest before you closed the account", and then charge you $50 for being under balance for the next six months or until they finally send you a collection's notice. Kim Phu

PS3 Price Cut Too Little Too Late [Business Week via Games Industry]

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