Analysts discuss effect of 360 price drop on PS3
by Andrew Yoon 
{ Jul 1st 2008 at 4:00PM }
A similar price cut for PS3 may be unlikely, consider Sony's recent focus on profitability. Already, the cheapest PS3 includes wi-fi, a Blu-ray drive, and free access to PSN. Sony must do a better job at emphasizing the value of the PS3, in spite of its higher cost of entry. "The gap of $100 may be a fair price to pay for [PS3's] built-in wireless Internet connectivity and Blu-ray, but [Sony's] done a terrible job of explaining that to consumers," popular analyst Michael Pachter noted to Next-Gen.
PS3 won last month's NPD figures, and is likely to win again this month, thanks to the release of Metal Gear Solid 4. Undoubtedly, Sony will pay close attention in the following months. If their momentum begins to slow, Sony may follow Microsoft's footsteps. "In the event of decelerating PS3 unit sales trends, we believe Sony might rethink its strategy on PS3 pricing, but for now, the hope is that a stronger software lineup as opposed to price concessions will drive hardware adoption," Colin Sebastian said. For the full analysis, visit Next-Gen.
Reader Comments (Page 1 of 2)
LP @ Jul 1st 2008 4:02PM
If i understand correctly, i think i saw on n4g.com that this was because xbox was dropping the 20GB model ?.
JEDIan @ Jul 1st 2008 6:27PM
isn't the $299 price for refurbished consoles?
Lars @ Jul 1st 2008 5:59PM
That was my guess. With rumblings of a 60GB "pro" coming out, this seems like they're trying to just clear out stock of the 20GB models.
Jangaboo @ Jul 1st 2008 4:13PM
Sony could do like the Apple commercials and show how much Microsoft Xbox 360 breaks....i know its a bit childish but it seems to be working with Apple and showing how Vista/Microsoft runs like shit
Miguel @ Jul 1st 2008 4:22PM
Thats a good idea but another good idea along the Apple marketing idea is to do something similar to what Apple does with the iPhone. Show all the features the PS3 has and hence convince consumers what an incredible value the PS3 is. Show a few great games (exclusive and multiplatform, causal and hardcore), show blu-ray/dvd features, integrated wifi/networking with free PSN/web browser, media system/streaming features.
MCX @ Jul 1st 2008 11:31PM
Yeah and just like Apple did with the iPhone simple commercials that tells what the system can do.
deaftly @ Jul 1st 2008 4:55PM
You think people actually take those awful apple ads seriously? If anything it makes Apple look desperate, and btw Vista runs fantastic if you have the hardware for it.
Mo @ Jul 1st 2008 4:08PM
i get so angry that people cant pony up. I guess I am a geek and i know intimately the details of why even at $599, my 60GB was a deal. And please before this becomes flame bait for those less fortunate. I grew up in poverty. I just make it a high priority to get my gadgets.. And I suppose I am blessed.
I am american. And it amazes me how ignorant people can be. The good news for me is all my friends who are hard core xbots are finally coming around. but for each one of them, there is probably 100,000 that still dont(and may never) get a clue.
Best line ever is that sony needs to make it more clear why the ps3 is a ferrari, and ram it down everyones throats. Blu ray, everyone knows. Whats wrong with an ad that adds everything in the blackbox up, and shows how much it would cost to try and do that independently.
/vent
Dan @ Jul 1st 2008 4:39PM
Definitely agree on most of your points. Though with todays economy its tough for anyone to shell out even an extra $100.
Like the analyst said Sony needs to make it obvious how the PS3 is a better overall value, and Sony has a HORRIBLE habit of trying to do that with weird as hell tv ads that just weird or creep you out.
Plus the software lineup is where Sony has to suck up to developers make sure their system looks like goldmine to develop on. I wish these oldfart CEOs would wisen up and make the right choices to their products on how to market them correctly...
ron burgandy @ Jul 1st 2008 11:50PM
as an American, shouldn't you be supporting an American Console?
It sure seems that the Japanese support theirs.
Carney @ Jul 2nd 2008 8:00AM
Exactly right, Dan. Sony prefers "edgy" shock ads that deliberately offend people's racial or religious sensibilities, or just puzzle them. Whoever their ad agency is, or whoever runs their in-house ad arm, needs to be not only fired, but publicly humiliated as only the Japanese can do.
Mo @ Jul 2nd 2008 12:55PM
Hey anchorman, I dont support the american console, hmm lets see... because its an inferior product.
And unlike all the other fools who ditched their ps2's to hop on the xbots bandwagon, I actually have some sort of brand loyalty.
Yeah i said it, loyalty.. i know, havent heard that word in awhile... im the last of a dying breed..
If American companies, want me to purchase american products, then they should make their products superior to the point where I feel that I "must have" it. Capitalism at its finest. btw, check your xbox, and see where its really made. We've exported all of our innovation, creation, and manufacturing. So dont get all holier than thou on me until u stop shopping at target, walmart, and anywhere else for that matter.
I love my country... wish the people that ran it did too
Mike @ Jul 1st 2008 4:15PM
Arn't these $299 360's refurbs that are coming back from repair?
http://www.n4g.com/News-163421.aspx
Thanks, but no thanks...
PS. What has this to do with PS3???
Devin @ Jul 1st 2008 4:31PM
If MS is dropping its price, what will Sony do? That's why it applies to PS3. Will they respond with a pricedrop, add more features (new SKU's) or will they just market better?
I am hoping for either A or B, mainly B since I want more HDD space, DS3 standard and a new heatsink that will make it almost-completely silent (I can barely hear the 60GB).
Mike @ Jul 1st 2008 4:48PM
$100 is nothing.
With a 360, you have to pay:
for Wifi
for HDD
$50 a year for online gaming
for HD DVD (sorry no Blu...)
You would have to be an idiot to buy a 360, even for $299, especially given it's reliability record (or lack of).
Arnon @ Jul 1st 2008 4:52PM
No... you don't lol. That's why they're add-ons. You don't need them, but yes, the PS3 does come with more. You also don't need HD-DVD to play games in HD on the 360..
deaftly @ Jul 1st 2008 4:58PM
If $100 is nothing, why can't you just own both a 360 and PS3?
nihillasohen @ Jul 1st 2008 5:40PM
@Arnon: I think that is strange that Microsoft says you really don't need any of these add-ons out of the box. The original Xbox came with a hard drive standard for the system.
When you purchase a system you’re putting your faith that the company. You’re supporting that brand and your trusting that these companies have a plan for future. These companies have an idea of where the future is headed. The future is a priority when you’re investing your money on a gaming system. That is why Nintendo has had so many issues with their hardware. The gaming community lost faith for a long time in the overall plan of the Nintendo’s gaming system. I held out so long to buy a PS1, because Nintendo was teasing us with a disc based add on for the 64. I'm kinda old, wanna fight about it?
Wii still can’t play DVDs.
Xbox 360 is a bad investment.
PS3 is the logical purchase.
Arnon @ Jul 1st 2008 7:00PM
The only 360 that doesn't come with a HDD is the arcade version.. and for $50 more, you can get a better version (I believe).
Arnon @ Jul 1st 2008 7:02PM
And no, the future would not be a priority.. Or at least not too far into the future.. Technology advances too quickly to build something for the future. Hell.. in a month, you would see a more powerful GPU for a PC.
frankym @ Jul 1st 2008 4:53PM
Sony better get it together and delaying SOCOm was not a good start
sibbor @ Jul 2nd 2008 3:21AM
Or giving up Eight Days and The Getaway 3... That made me a bit sad. There haven't really been any big announcement for new, big game titles for the PS3 for a while.
Everyone knows LBP, R2, GT5, Tekken 6, FF etc. is in development already, but _new_ games?!
Mike @ Jul 1st 2008 5:39PM
Why because it needs some more polish? I would rather they delay it a month, then deliver turds like "Too Human", which is the worst game any any console for years... (and one of the XBox big hitters apparently).
If only they delayed....
Devin @ Jul 1st 2008 5:40PM
Oh yes, w/ 2.40 out tomorrow as well as making sure their titles live up to expectations I think they will be plenty "together" come this Fall.....
Arnon @ Jul 1st 2008 7:04PM
I thought Too Human came out in August ;>.>
Arnon @ Jul 1st 2008 7:05PM
Not to mention the fact it's been in development for 10 years...
"If only they delayed."
Kruegmeister @ Jul 1st 2008 5:05PM
I personally do own a 360 and a PS3, Oh yeah a Wii too.
I would buy the PS3 again but not the 360.
I have been a lucky recipient of the Red Ring of Death.
My Halo 3 Disc was Bad and It took 5 Months before I got a copy that would Play.
2 of my 4 controllers have the Left Trigger Permanently On.
Plus $50 for Live. If my Son and I wanted our own friends list it would be $100 a year...
One is the Corvette(PS3), The Other the Chevette(360).
You Get what you pay for.
Nick @ Jul 1st 2008 5:24PM
I think most people who want a 360 already have one, so I'm not sure how effective a price drop will be. The upcoming software lineup for this year on 360 isn't very impressing and neither is the lineup for next year (that I can think of). I just want more people to buy PS3s so voice chat will be potentially useful.
Chris @ Jul 1st 2008 5:51PM
Xbox 360's year over year sales are on the rise. Apparently people do still want Xbox 360s.
Nick @ Jul 1st 2008 6:18PM
Look at the monthly sales for this year and you'll see that previous trend will not be true for this year, I believe.
Republicofthoronia @ Jul 1st 2008 5:22PM
I did a bunch of research before making my decision and it definely boiled down to: psn being free, wireless included (I'm not going to reroute my whole house!), Bluetooth, and blu-ray. Oh and mgs4. But Sony definetly has to show off things like wi-fi. That's a $100 xbox add on that most will pay after the fact...
JohnnyLaRue @ Jul 1st 2008 10:50PM
Lets be honest here the US economy is awful right now. I am no fan of MS but for them to lower the price now is a good move. People are flocking to Walmart again these days to save money. Gadgets are NOT a high priority (Mo you are in the minority). Buying gas, future home heating costs and the lingering effects of the sub prime mess are.
Yes Sony needs to explain to the masses why their system is a better value. My hunch is come the holiday season there will be a push to sell the PS3 (summer is not the right time). Maybe a bundle deal with a few budget titles? Maybe toss in some Blu-ray movies? Not everyone is a gamer and pushing the Blu-Ray aspect might help. Also have a better marketing campaign. Hopefully the economy is better by then. If gas prices are high in the winter Sony should push retailers to waive the shipping cots if the consumer purchases a PS3 online.
Oh and those "awful" Apple ads got my relative(s) to buy a Mac. Don't discount a good ad campaign.
Carney @ Jul 2nd 2008 8:06AM
The economy is not "awful" right now. For goodness sake. We're not even in a recession; the economy's still GROWING, just at a slower pace. People are spoiled hothouse flowers, the have the memories and attention spans of goldfish, it's unreal. Nobody seems to be able to remember what a recession is actually like, let alone a deep and lasting one, and forget about a depression. A little dip in the growth rate and people start moaning and sobbing and the media goes into hysterics.
Read facts from Business and Media.org showing how the media is pretending that this slowdown is worse than the Great Depression! Ludicrous.
http://tinyurl.com/6q94ot
Europe would kill for our jobless numbers. The Japanese have been enduring a 20 year slog through stagnation. We just don't know how good we have it.
The situation reminds me of spoiled crying babies being confronted by a tough or even mean father saying "you want me to give you something to cry about?"
Emissark @ Jul 1st 2008 5:53PM
Where are all the 360 fanboys? I would have expected some sort of defensive and offensive post by one of them right about now.
Let's hope these are really new systems and not refurbished marketed as new. If that was the case then Microsoft should getting ready for a major lawsuit.
Even at this price the system is not a good buy. It is too expensive in the long run and you get half of the features of the PS3. Not to mention it lags, freezes, scratches disks, it's noisy, and overheats (RROD).
The PS3 is worth the money in my opinion. I'm happy with my purchase.
tan @ Jul 1st 2008 7:20PM
im a 360 fanboy=]
i honestly don't care, i have one and its got all the games i want.
when i get a blu ray player i'll buy a ps3=]
or as soon as it drops below 200£ in the uk..which will probably take a while
i think i'll still love my 360 more.
i still think the ps is a good system, hardware wise, not as good software wise but it's definatly getting there:)
Jared @ Jul 1st 2008 10:50PM
I think the primary reason they DON'T tout these "advantages" over the 360 is the simple fact that they are only advantages to a small (albeit growing) percentage of people currently in the market to purchase a console (especially those that have been saving up forever to buy one of the two).
If the prospective buyer has dial-up ONLY (yes some people STILL have dial-up and cannot get access to broadband where they live), and a standard-def tv, you're paying extra money that could be used on extra controllers and games with that extra $100.
If Sony is going to use bleeding-edge technology for their console, they're going to have to expect a certain amount of time to pass before the average gamer catches up to the console's "advantages". Especially since the competition is much easier to configure to a consumer that either has hi-def/broadband or doesn't.
PAPERCHASER0396 @ Jul 1st 2008 5:57PM
What about the accusations of these being" REFURBISHED" doesnt that make huge difference to most people who know of RROD?
Charlie @ Jul 1st 2008 5:58PM
I agree with Pachter. Even at $299 for the Xbox package, the $399 PS3 is the better deal, but that Sony isn't doing enought to help itself. Which will be especially bad when MSFT upgrades the HDD on their $299 SKU to 60GB as rumored.
If I was consulting Sony, I would recommend two things: (1) START MARKETING THE BLU-RAY / PS3 CONNECTION! Make some deal with Best Buy where with the purchase of an HDTV and a PS3 you get a free PS3 media remote and a couple Sony Studios Blu-ray movies. Cheaper than a PS3 price cut while hopefully attaching a PS3 to a whole lot of HDTVs. If you're worried that this will lead to a lot of people buying your heavily subsidized PS3s without then purchasing any accessories or games to help you make a profit, I've got news: gamers are educated about HD, Blu-ray, and consoles, and they know how they are related. If a gamer doesn't value the blu-ray capabilities of the PS3, then thats because he either doesn't have an HDTV or doesn't care as much about movies. Deal with it and try to sell some games to everyone else. (2) Get your act together with PSN! Just copy all the features of Xbox Live, while keeping the much-slicker XMB interface, and while keeping it free. THIS IS SOMETHING AMERICAN GAMERS CARE ABOUT. THIS IS SOMETHING YOU COULD MARKET TO US. We're all about online multiplayer. Its simply reeks of arrogance that MSFT would have developed this extremely popular and critically acclaimed service for their last-gen system, that years after the launch of the PS3 they refuse to even agknowledge that they are developing something that is comparable. The firmware 2.4 update is a marginal improvement but not even close to replicating the most important fatcors of XBL, including a single username across all games (and gamers would actually prefer a moderate one time fee to discourage people from constantly creating new accounts vs them being free) and the ability to send game invites across different games.
Thats what American gamers want to hear. If Sony doesn't want to sell to them because they're stubborn then I suppose thats their perogative.
I just realized an additional negative force against Sony profits, which I recently became a part of: People who have both a 360 and a PS3, such as myself, are more likely to be more avid gamers, and are thus more likely to buy any multiplatform games for the 360 because of the better online elements (even ignoring the fact that several multiplatform games were reviewed to play significantly better on the 360 not even considering the online element). This is what I'm planning on doing (I just bought the PS3). I justified my PS3 for the exclusives and as a Blu-ray player. So while I bought MGS4 for the PS3, I bought GTA4 and COD4 for the 360. Sucks for Sony, they're not making any money on me and I'm a "hard-core" gamer!
redbrick @ Jul 1st 2008 10:50PM
I've got a launch PS3 -60 and I still don't see much value with this system.
1)Only a handful of games are actually true 1080p. So why not go for the xbloc360? To make things worse...only a handful of games are worth playing...and some are not even exclusive.
2)BR...seriously...anyone still buy media? Most use encoded download videos...Divx/Xvid. I've got 3 BRs, and I rarely pop those in the system to watch them. Wish I could rip them and keep them in the system to watch over my psp. DVD's are almost give-away prices these days, with long life and with upscale tech...could pass for some as HD.
3)Online with the PS3 sucks....web browser barely passes for one. Online chat is only limited to those who really give 2--sh!ts about it.
The PS3 still has a LOONNNNNGGG way to go to stand next to the xbloc3sh!tty. It needs to prove that it can almost make your morning coffee to prove its value. Really, it needs to be hacked....so we can filter out the piles of crapware w/ ISOs. In the end...I still love my PS3 and PSP combo
Xbox4orlyfe @ Jul 1st 2008 6:12PM
360 is best nuff said =]
ben @ Jul 1st 2008 6:30PM
360 is last gen tech with beefed up hardware
and despite what people think xbox does not hold the position as the first console to have online content. that position goes the sega saturn from two gens ago. i just felt like the burn needed to be said
Emissark @ Jul 1st 2008 10:50PM
Xbox4orlyfe
What the f### are you doing here? Go back to 360Fanboy where you people belong. This site is for PS3 owners. You know people with half a brain who knows better than to get ripped off by M$ and their shitty piece of hardware they like to call a "game console".
ben @ Jul 1st 2008 6:24PM
the problem is that 1. developer produce games for ps3 as an after thought to 360 which means they usually just convert all the code over 2. because of this the developers aren't putting enough effort into fully comprehending and implementing the full power that the system houses within that shiny black shell
if the devs made the games with the ps3 in mind they would turn out looking better than the 360 could even hope to do
ballernaz @ Jul 1st 2008 6:30PM
It makes sense, xbox, 300, ps3 400. Now Xbox+wireless+2 years of live+hddvd(just saying even though its dead, but to get hd video)=aout $550 u can get a ps3 with all that for $500 and live is 50 bucks a year 4 however many years, so it all adds up over time
ajiezer @ Jul 1st 2008 6:47PM
First of all I am a PS3 fan, I own 2 and I do not own a 360. Checking what happened in Europe the 360 regained sales when they cut the price so I wouldn't be surprised if the same occurred here, as a costumer the competition benefits me but like Patcher said price cut = unlikely and if Sony wants to profit this fiscal year they won't cut it.
Maybe in August, after some weeks after E3 something will appear.
roach @ Jul 1st 2008 7:55PM
It's all about the games and the PS3 doesn't have that to show yet
jake18oly @ Jul 1st 2008 10:45PM
I have had an Xbox 360 for about a year and a half and I just bought a PS3. For me the only option was the 80 gb model because my wife and I wanted to play PS2 games as well. It was harder for me to convince my wife to buy a PS3 simply because the entry price was $150 more than what the 360 is going for. Even though we have bought multiple controllers and games for the 360 it just seemed like we were spending so much more on the PS3. Now that we have it though we love it. I really appreciate the ability to watch Blu-Ray movies and it is nice to have wifi built right in. The PS3 is a great machine but honestly I still like Xbox and will continue to play games on that as well. I think that if people can afford it then they should buy both the PS3 and the 360. By the way, we had a Wii but sold it because it wasn't getting much play time.
Efeez1986 @ Jul 2nd 2008 1:44AM
A price drop isn't going to make the 360 game lineup look any better. All of my upcoming must play titles are on the PS3 only.
Great game lineup > price drop
David M @ Jul 2nd 2008 2:32AM
This price drop is exactly for people like me...
I don't own any video game system right now and am having a tough time choosing between the 360 and the PS3. PS3 is nice b/c of BluRay and included internet but the 360 has tons of games (and availability of cheaper classic/platinum games) so it is much cheaper for me to buy a 360 and some games and have fun.
However, now the price drop makes it an even tougher decision b/c that really is a gap to the PS3 - yes it has much more functionality included but I am not that hardcore a gamer and will not be spending my life online gaming either. I don't like the fact that the 40gb PS3 doesn't have PS2 backwards compatibility. If the 80gb PS3 was $399 then I guess I'd buy it.
Lukin @ Jul 2nd 2008 10:52AM
It is as simple as this.
PS3 for media.
Xbox is for games.
I have had my mediastation 3 for 3-4 months now and I have yet to actually play a ps3 game. Blu-ray + streaming media is all i wanted in the PS3. I don't understand why everyone thinks the PS3 wifi is the greatest ever. My ps3 only gets 2 bars wireless signal from a source that is 3 floors up, when my Wii (when I actually turn it on) gets a 4 full bars. PS3 wifi is total crap imo. Sony needs to profit the system by its media uses more so then the games right now. Until Sony actually releases a few of the exclusive games its always a "wait until later" thing. Why not spin that into the media benefits. I know a lot of people that would consider the "games" part to be an added benefit.