EGM August08 Rumour: Xbox 360 To Receive Hefty Price Cut This Fall

The latest rumour in the soon to be released issue of EGM (August 08) speculates that Microsoft is set to announce a huge price cut on Xbox 360 SKU's this fall.

[CAPT IRISH]

it seems like every EGM rumor has been posted

[damrightfresh]

They have to do a price cut because Sony is whipping their a$$ world wide..How is Microsoft expect to win this year or next with no games..lol..

[eagle21]

From Neogaf:

http://www.neogaf.com/forum...

[KimboSlice]

Hi everybody I'm new, I just wanted to add my two cents to this topic.

I believe that microsoft at this moment is making a profit off of the 360 hardware unlike sony. Even if sony IS selling more consoles than mocrosft at this time, sony is losing money with every sale. If this rumor proves to be true I think that MS will only lower the price enough to break even while another price cut for the ps3 will only hurt sony.

I think that MS will be happy even if ultimately the ps3 has a bigger installed base because the only thing that really matters is the bottom line. With the original xbox MS was bleeding funds this is not the case anymore.

Having a relatively better financial situation in the console division than sony, MS will then be better prepared than sony to launch a next generation console after this era is over.

[kazuma]

hey kimbo shouldn't u be over at bangbus?

[mikeslemonade]

Kimbo, your right about Microsoft now making money off the 360 hardware but what about the xbox 1 debt $4 billion, the rare $300 million pay out, the GTA4 $50 million pay out, securing DMC4 multiplatform, paying for the Japanese RPGs Blue Dragon and Lost odyssey etc., getting all those timed exclusives, and the $1.5 billion pay out to extend to 3 year warranty. Right now PS3 and 360 are at the same level in terms of losing money but the difference is the 360 is a year older so they should be ahead.

And last of all please remember the PS2 the most successful system to this day was not making money off the hardware in its first 2 years.

[Finch]

@kazuma I believe his avatar is the old Underground Street King fighter. He does go by Kimbo Slice so you can look him up. If i remeber right he was the one that made it big on the internet by busting out another guys eye ball in a match!

[KimboSlice]

mikeslemonade you make good points but I think that thanks to pressure from MS the ps3 will not produce profit for its entire lifespan, it's just a too expensive technology, with the cell and bluray (the cell is only recently being put in laptops as state of the art tech)

The point is that the PS3 will remain more expensive to manufacture proportionally compared to the 360.

[The Wood]

i hear gannon the cannon is looking for you

[Bladestar]

@mikeslemonade - debt? to who? can you point to a source where it show that microsoft had to borrow money that now they owe (you know hence why you call it debt)...
debt it's not equal to debt... how hard it that to understand?
Don't compare microsoft situation to Sony... Sony had to sell some of their assets to keep blu-ray and the Playstation brand alive... Sony had to borrow money to keep the company running... Microsoft just had to move funds from one of their pockets to the other... The xbox division DO NOT HAVE TO PAY ANY DEBT.... let me give you an example... did you see how much money microsoft was willing to pay for yahoo? Microsoft was willing to pay $44.6 Billion To Acquire Yahoo... were microsoft going to make that money back? hell no... is Yahoo worth that much? hells no... so why? because of market share.. because it would put them on a better position to compete against their competitors and because that would open other revenue streams... why should they care about 4 bil when it's securing a large marketshare and presence in the game industry... not to mention in people living room which is putting them closer to their goal of connected services and digital distribution... the xbox 360 is also putting them in map as far as harware is concern specially as software get's competitive and they are force to expand their target demographic... most of you are short-sided and see the xbox just as a small microsoft product when in reality is an important piece of the entire company strategy...

[KingME]

First off, how much of that mess you posted do you actually have factual links or access to. The warranty extension, I thought that was 1 billion not 1.5 billion (Why would you try and tweek the numbers) I'm so sick of the average joe on this site posting numbers and quoting figure that they don't have a clue about while trying to make a point. The only real point you're making is the point that you don't honestly know what the hell you're talking about.

Please correct me if I'm wrong, but by all means do it with the links to support your data. Just trying to see who talking facts and whose just talking.

@damrightfresh
"They have to do a price cut because Sony is whipping their a$$ world wide..How is Microsoft expect to win this year or next with no games..lol.."

Uh, have sony not had MULTIPLE price cuts and sku changes? Have sony not bundled brand new titles like MSG4, Heavenly Sword, Motostorm, etc. and other games (that could have sold on their own) to help sell consoles? So, why would you talk sh!t when MS does something to sell it's console. You're pathetic...lol

[The Wood]

both of our beloved companies do what they can to thrive in this world whether its multiple price cuts or releasing their product early there's no best fit so to speak. All of you have made good points even if they are a little reactive.

[cja643]

I totally agree with what you are saying. The only problem is, you don't back up your own facts. You say that mike is tweaking the numbers, and that it only cost them 1 billion instead of 1.5 billion. Where is the proof?!
My point is, if you are going to demand links with proof from others, you have to give some yourself.

[kwicksandz]

Ive never seen anyone suggest before that the 360 is the console with no games before ROFLMAO!

[otherZinc]

The PS3 went form $599.99 to $299.99 in a year & a half!

So now what?

[Lifendz]

I guess because you have the oportunity to accumulate more profit long term.

How silly are they going to look when they're charging for what Sony provides for free?

[MikeGdaGod]

http://www.usatoday.com/mon...

"The charge will be $1.05 billion to $1.15 billion......"

[Time_Is_On_My_Side]

I think of it the other way around because Sony is in it for the 10 year mark. Are you really ready to buy a next generation XBOX in two years from now? In the long run Sony's console will last the longest especially with the blu-ray disc technology. In my opinion this is a desperate move on Microsoft's part because their hardware won't last as long.

Like how Microsoft launch a year early without that move Sony would have dominated Microsoft. These moves made by Microsoft is just a way to keep in the race than to finish it.

[Superfragilistic]

The biggest problem for Sony is not the console itself but finance...
See this: http://www.n4g.com/NewsCom-...
and this: http://www.n4g.com/industry...

Losses last financial year for Sony's gaming division were $1.2bn, but that included an estimated $1.2bn profit on the mighty PS2 & PSP, which means the PS3 division actually lost close to $2.4bn or around $260/console of the 9.24m sold last year.

Sony whilst it would like to cut the price (and I'd love them to!), has already indicated a reluctance to do so this year as a result of shareholder pressure and such large losses (hence the shareholder press about them reducing PS3 costs year on year). They've publicly stated their preference for profit over console base in the short-medium term.

Given MS is now turning a tidy profit on sales and approaching break-even on the initial 360 investment, it could cut the price significantly with the confidence that Sony would be financially unwilling to significantly respond.

PERSONALLY:

I own all consoles so it won't affect me. But from a corporate strategy perspective if MS are truly serious about this generation they should go for the full retail kill and instead of a $50 cut they should be ruthless and go for something closer to $100, safe in the knowledge that for the next 6-12months Sony won't be able to enter a price war without significant shareholder backlash.

[Silver360]

There is a thing called price elasticity. Which means people are willing to buy something at a certain price, but not all the people will at that price. And the lower the price gets the more people are willing to buy the product. MS has sold approximately 20 million units at the $329 - $479 price range over the last 2 1/2 years. they have just simply reached the limit of the audience they can reach at that price. While PS3 still has people willing to buy one at $400, that will slow down as more are sold at that price and everyone willing to spend $400 is sold to. A price now is needed for MS to reach a new market of gamers. It is not to "beat" the PS3 it a financial decision to spur sales and increase market share for long term growth. Don't ever forget the console war has business men running it and in the end it always about market share and profits.

[N2NOther]

Finally a voice of reason and understanding. Bravo, Silver360.

If anything, as much as love my PS3, Sony has been screwing not only the customers but the retailers. Because of a lack of confidence in any one scu, they've discontinued models that customers bought warranties for. So now, they're forced to downgrade, or take a refurbished one because, for example, no new 60 gigs are available for replacement.

I've had to deal with some very unhappy people due to this and I completely empathize.

[SL1M DADDY]

lol

Sorry, but the only way to get the PS3 for 299 is through the Sony Style Store online and a few retail deals that come and go. The retail price for it though is at 399 and is still selling like crazy worldwide. If they nocked down the price to a retail of 299, it would be making a killing over the great sales it is experiencing right now.

The funny part of this all is that the most popular version of the PS3 is the 80gb model and that is still 599. Every time I see it bundled with something it is sold out.

[The Wood]

in europe its cheaper than the wii. the 360 is doing fine'ish in the US, its Europe and the rest of the world that MS should be focusing on. The price cut may not spur as much growth that people think. good shout Silver360, that reminded me of business school:)

[KingME]

Okay, my number for 1 billion dollars was on the lines of clarification not fact. Notice I said "I thought that was 1 billion not 1.5 billion " I never quoted a bunch of statistics whereas the other guy did. So, if you are going to try and analyze someone's comment, at least know how to read the context.

Additionally if you need a supporting document here is your link:
http://www.xbox.com/en-US/s...

Mike punched out a bunch of numbers from all kinds of directions without one single link for support his fact. Also, if a person is going to start initially making quotes on company's finances, they are the ones that need to support their comments, not those that object to them.

If I say I can fly, and you object to it. You don't have to prove that I can't fly it's up to me to prove that I can.

[Lucas22]

hopefully sony will do the same

[fenderputty]

although I'm sure they would like to not lower the price for a little while longer.

Someone at Gaf forum has said that this rumor includes a PS3 price cut as well.

It's about damn time. I can't wait until both of these consoles get to levels that people can afford.

[Amanosenpai]

Sony really needs a price cut... Sony is sinking...

The XBox is cheaper and BETTER BY FAR in many ways...

[fishd]

What's wrong with you?you are a 360fan and have a avatar of snake standing on x360 from SDF.com!lol

[strotee]

Well, you got the "cheapest" part right.

[y0haN]

Zing!

[Lucas22]

or at least drop the prices of the games to 49.99, i wish

[fenderputty]

Software is where these guys make their money. Their willing to loose money on hardware just so they can push the expensive software.

[Stryfeno1]

Well it is about time....I have a couple of freinds who waiting on the price drop.

[deeznuts]

I've been resisting. But a huge price drop will make me buy one over an updated video card for sure! Then I'll have all 3 (and four because I probably will still buy a damn video card)

[rawd]

Arent hefty price cuts what they did to HD-DVD players before they went extinct

[Shaka2K6]

Hahahahahaha look at Europe the xbug 180 is half the price of the PS3, and PS3 still kills it week after week hahahaaaaaaaaaaaa.

xbug 180 = DEAD!

[TheMART]

Nah, hefty is what they did to the PS3 in 2007. From 600 to 400 bucks overnight!

360 went from 400 to 270 bucks (Premium) in 2.5 years now. So it won't be strange to cut it another time close to its 3rd year this fall/winter

EDIT

@ Pooface below

Wrong. In Europe it is like this:

Arcade 199 Euro
Premium 269 Euro
Elite 349 bucks

USA didn't get the price cut yet we got here some months ago.

[GiantEnemyCrab]

No, it's called being competitive. Did you say those same things when $ony dropped the price of the POS3 in the first year?

[poopface1]

what sony did last year, while removing crap. mart I thought you knew all about the xbox. the premium costs 350 now. The core/arcade is 280(only 20 drop) but they added xtra stuff with it.

[Isaac]

The 60GB PS3 went from 599 to 499, then it was replaced by the 80GB PS3. The 20GB PS3 was 499 and then it was replaced with a 40GB one with WiFi that cost 399. So it went from the 599-499 range to the 499-399. Later, the 80GB appeared to be phased out but then it came out again at 699 with Metal Gear Solid. PS3, despite its $100 drop, is still the most expensive console and it is outselling Xbox 360.

Furthermore, it is normal for Xbox 360 to have lasted so much time with the price so high. After all, it came out first (just like the PS2 last a lot with a 299 price tag), and it was also a lot cheaper ($299-$399), a $200 dollar difference which game Microsoft a lot of room to breathe.

Get your facts straight next time, idiots.

[Rageanitus]

Difference is 360 will not go extinct but all they are doing is attempting to adapt to market conditions.

[Max Power]

i am sure you mean that the 80 gig MGS bundle is 499 since returning, it maintained that pricepoint not increased it. (usd)

[Rageanitus]

were you not one of those who kept bring up the idea that Sony did not do a real price drop.... LOL

[Pain]

Time to Flush out the crap in time for Xbox 3 in 09!!!

lolM$supporters

[Captain Tuttle]

It's overdue but better late than never.

[SacT0wnF1n3st]

Price cut = Gamers win!!!

[damrightfresh]

The only way ill purchase the 360,if they fixed all the flaws withing the system..

Im talking about the 3 red lights of death and etc..

[Willio]

all i gotta say is we have the same icon, and by default you are awesome.

[ChrisGTR1]

pricecut=little kids that cant afford anything win = we lose cause we have put up with them on live.

[user858621]

if they do cut the price down further it just shows that they are desperate and that the end of this console is soooon.

look at the price right now £150 when the original xbox came to its end the price was at £100

[TheMART]

So again, how about the desperation when Sony cut the PS3 price in its first half year in Europe from 600 to 400 Euro? Damn thats real freaking desperation!

Hardware gets cheaper over time. A price cut is a healthy thing after a couple of years. The 360 gets its main stream price more and more, while the PS3 won't move to the mass public/general gamers soonish with its 400 Euro/Dollar pricetag.

[Snukadaman]

You mean like when the ps3 gets its price cut also...I myself question microsoft as to why they didn't put this price cut in effect when gta4 was released...face it..sony is in a hell of a pickle...do they drop the price of the ps3 and undermine stand alone blu-ray players to also drop in price or do they just sit back and squirm. either way I get a ps3 or i end up laughing my azz off.

[GiantEnemyCrab]

Nasim/Lenhart: This is the first REAL price cut the 360 has seem in almost 3 years for NA. Desperate? Not even close.

Again, the 360 is the underdog in the console race and MS needs to be aggressive. I'm surprised they've been as reserved as they have so far this gen. I expected a price cut last Holiday.

Desperate is cutting your price in the first year ala $ony.

[Shaka2K6]

Hahahahaaaaaaaaaa just like desperate xbugs around here.

and with good reason everything they been doing for the past years has been falling a part hahahahaaaaaaaaaaaaa.

microsoft the next enron, will die soon and it will be the best day of my life XD!

[phony force slayer]

and u cant say FLOP DOG PHONY wasnt desperate. 1st year their was 2-3 price cuts on every sku. hen u finish with your bottle of sony dribble come back and talk sh1t then.

any way i thought as technology gets older prices for making the console go down and down and as the cpu/gpu go down it costs less to make. so they can sell it cheaper. droping a price of a console such as in the usa would be a good move stratagy wise because they haven't had a real price cut in 3 years. so it further increases the sales and moves closer to a selling point for the mass market. before you fanboy mouth talks about making stuff up. take a few lessons in business studies you hypocrite.

[niall77]

Pro for 250-270
Elite 300-325

But if the ps3 continues its road of profitablty youll see a cut from sony in europe... maybe not america unless the dollor imporves since the current low dollor is KILLING them on every ps3 sold in america

[RememberThe357]

Good point. Profitability wise, if Sony wants to stay in the game I'd expect maybe a $50 price cut but thats about it. I would be surprised if they didn't cut the price a all here in the states for the exact reason you stated. They need to start making money, and that starts by pushing software that moves units. The console will sell if people think the software is worth it.

[pumpkinpunker]

Or haven't you read? They're gaming division is still losing money up until this very moment. They cannot afford a price cut and right now instead of worrying about winning the console war, Sony's gaming division has to focus on surviving. Thusly, they have to find the niche market for their high priced console that plays blu-ray movies and accept a 3rd place finish once Microsoft starts dropping their prices.

[ActionBastard]

That rumor also states the same for the PS3.

"Hefty price cut coming for both the Xbox 360 and the PS3 this fall."

http://www.neogaf.com/forum...

[ceedubya9]

but that's only a few months off. Its long overdue too. Hopefully its not another measly $50 dollar cut. The need at $100 bucks off.

[ActionBastard]

I think they'll drop the price another $100 split across all 3 skus (just like last time). My guess? $50 off the Elite = $399, $20 off the Pro = $329 and $30 off the Arcade $249.

[DrRage77]

i have a feeling they will do a tiered drop, just like last time. the arcade will probably drop $80 down to $200, the premium and elite both with $50 cuts to $300 and $400 respectively

$200 = Arcade
$300 = Premium
$400 = Elite

[TheMART]

Ah I forgot, the last pricedrop was only in Europe right?

Arcade - 199 Euro
Premium - 269 Euro
Elite 349 Euro

Maybe the USA gets it now? Or maybe Europe will get one again also. Anyway, great move to get the mass market/casual gamers

[poopface1]

that they are going to do a real price cut. Hopefully they will get rid of the arcade, or at least put a hd on it.

[TheMART]

I don't see why. Its a great game to step in HD gaming for a low amount of money.

Overhere in Europe:

360 Arcade + GTAIV will cost you 250 Euro
PS3 + GTAIV wil cost you 450 Euro

Where 360 runs on 720p, PS3 runs on 640p.

I've talked to a lot of gamers that just didn't want to spend more then 200 bucks on the machine and don't mind about a HDD. They still can go online with the Arcade, don't mind about downloading demo's & video's.

[Angelitos]

TheMART at Xboxkings

Dont start

PS3 version looks more realistic, less pop ups, shorter loading times, and better AA.

[Kyur4ThePain]

I'm seriously curious, what do those people do when a patch gets released for a game?

*EDIT*
I think the latest sales figures show that most people WOULD rather pay more for better quality (HW).

[Rageanitus]

The ps3 comes with BD drive & it comes with a more reliable system and and built in HD.

Sorry but the BD drive alone is worth the extra money cuz it provides other entertainment when your resting from gaming.

[poopface1]

the added value to the consumers would far outweigh their costs. I always thought it was stupid for them to have no HD on one model.

I actually bought a core for 299 in early 2007. Eventually sold it cause im a poor college student(and I heard about problems/didnt have a hd) so I sold it before it crapped out on me. When the pro dropped to 350 and got HDMI I bought another(with bioshock). Having no hd is stupid. If everyone had one(or more space), people would buy more sh@t off live for sure.

I also think that its stupid to have 3 different versions of a console, especially when the only difference is the hd. There should be two skus max, and they both should have a HD.

[etownone]

that is your opinion.

Just because PS3 needs a HDD to install multi-plat games like DMC4, Lost Planet, Burnout, Oblivion, and GTA4 doesn't mean the same applies to the 360 because it has already proven it can run those games as good if not better without the HDD install.

for the most part the HDD is most beneficial when you are connected online BUT:
- there are people that can NOT afford broadband.
- not everyone gets internet connection where they live.
- there are parents that do not want their kids plying online.
- there are poor and cheap people out there that can't afford a $400 console, so getting an arcade at the cheapest price is perfect for them since they can always upgrade in the future.

The Xbox 360 has already proven you can play today's best games without a HDD, games like HDD is NOT needed. and the 360 has already proved it with games like Bioshock, Halo 3, Mass Effect, GTA4, COD4, HL2, and Oblivion.

[KingME]

Wasn't it said that the PS3 version of GTA IV had no AA?

[poopface1]

I just think it is a step backwards from xbox 1, and that microsoft just uses HDs as a reason to have more prices. You say alot of people dont have internet but the thing is called arcade, as in XBOX LIVE ARCADE. I think having no hd sucks bad cause you cant use alot of features that a casual might want. I pretty much only use my 360 for games But these supposed casuals cant even download lots of arcade games with a 512 mb card. Or watch a movie, or try a demo. Why include everything(wireles, controler, HDMI, headset) that the elite has but with a 512 mb card, instead of a 120 gig HD. Because they NEED a reason to charge more for the other versions. I dont think a 120 gb hd is worth 170$(the difference between elite price and core price where I live). I guess it cost them extra making it black as opposed to white.

I know that 360 doesn't need to install games, and Id be pissed if it did. Not only cause its a console and should not have to install games, especially inferior versions of multiplat titles "cough cough PS3 cough cough" , but also because my measly 20 gig(13 usable) would be full instantly and microsoft thinks HD are worth way more than they really are.

Edit: "my first comment I said hopefully get rid of the arcade, or put a HD on it." Those are the same things, and tho only difference between the pro 360 I got for 350$ and the arcade is 19.5 GB.

[LaChance]

price drop + Geow 2 = 360 going for PS3 K.O (USA)

I bet its coming at Xmas to get some momentum for 2009 and stuff.And they have a whole lotr of games coming at the end of the yaer.

[ActionBastard]

Just like GTAIV was going to be the K.O., right? Or Halo 3 or Mass Effect (oops, coming to PS3) or Bioshock (oops, coming to PS3) :P

[PSMonster21]

They need a HUGE price cut if they want to compete. Otherwise... they dead.

[Jandre02]

Launch 60gb599/20gb499

Now 80gb499/40gb399

The prices have dropped $100 for the PS3. Why is it that Xbox fans always try to spin this? If they PS3 had dropped $200 (from 499 to 299) then the Xbox 720 would be coming out next spring lol.

But its not uncommon to see desperate Xbox diehards trying to grasp at everything possible to counter the fact that the PS3 outsells the 360 in EVERY region including the US, and that it has outsold the 360 by 1.5million the slow part of the year.

At least the MART is going down with the ship lol. +1 bubble for seeing the Xbox360 through to the end (winter 08).

[N4GMember]

I won't buy a PS3 until it is $199.99

I am prepared to wait.

[Stryfeno1]

I won't touch a PS3 unless it hits the $199 price range...I hope by that time God of War 3 will launch in a bundle.

[DG]

Same here. And if what Sony has been saying about the $100.00 BR read only (ROM) drive by winter I may never buy one.

http://www.engadget.com/200...

[ZombieNinjaPanda]

You better wait a good 10 years. Neither the ps3 nor the 360 are going down below 200. It would not be profitable to either M$ nor sony at all.

[LaChance]

I PROMISE to give you a bubble each and every single time I see one of youi posts if you can give me a link or some kind of evidance that ME is coming to PS3.

Anyway I bet I wont be hearing from you since you cant bring anything to table.So...goodbye.I bet youi gonna act like you didnt see my post lol.

BTW cant wait for MGS4 on 360 :)

[Willio]

i assume thats sarcasm on MGS4 coming to 360. it be nice of you to show a link on that.

[beoulve]

ain't EGM said Metal Solid Gear 4 was going to XBOX 360 as well. What happen to that?

[etownone]

still is.... just waiting till the one year exclusive deal to Sony runs out.

:)

[PSMonster21]

You gonna keep waiting after a year passes and their is still no 360 MGS4?

[mindedone]

It's usually the other way around. Price drops would come when sales become stagnant.

[Obama]

It's already selling dirt cheap in Europe but apparently it didn't have any lasting effect on the sales. The 360 is as cheap as the wii there but none gives a crap XD

[Valin]

I love my 360 a good bit but quoting Resolutions and affordability in the same comment is laughable. Odds are if you can't afford a 450 euro console then you can't afford the usual 900-1200 euro base level HDTV.

Also people who look at affordability generally can't see the missing pixels..... In fact no one can on a TV under 40 inches XD

[TheDeadMetalhead]

Looks like I'm not getting a PS3 anymore! Unless it gets a price cut too. :)

[Max Power]

according to the source from Neogaf the rumor is reported for both Xbox 360 and the PS3. Just thought you would like an answer to our post.

EDIT: http://www.neogaf.com/forum...

[TheDeadMetalhead]

And we're back to PS3...

...YAHOO!!! I'm getting a PS3 sooner than you think!!! :)

UPDATE: I'm getting disagrees? What? You don't think I'm getting a PS3? How do you disagree with that? REALLY!!

[Max Power]

i got a disagree also, it makes no sense, did i lie to you and give you wrong information or something?

not saying you gave me the dis, just stating that all the info i provided was valid or so i thought

[1stKnighT]

Might coincide with the release of Jasper.

[Rageanitus]

how xbox fans bring up the next chipset of the xbox.

Just shows that the crowd is aware of the reliablity issues and hoping it will decrease the defect rate.

Its not like a pc where most ppl buy specific parts to overclock or modify..... this is a console.

[1stKnighT]

Jasper is just the next chipset that will reduce the costs of the 360. That is common practice in consoles. The ps2 did it all the time. The ps3 does it also. Well actually the ps3 just removes things to reduce the cost. --------------- ZING!

[strotee]

Jasper = Xbox 360, Service Pack 1 :)

green - I was just making a joke, I don't keep up with all the revisions. (and I know every console has revisions)

[green]

LOL.Well actually,
Falcon 2007 = service pack 1,
Jasper 2008 = service pack 2 and
Valhaler 2009 = service pack 3

[heroman711]

i hope this is true. it would make it alot easier for me to afford a 360

[SRuN4]

wheres the other half of the rumor? you know the part about the PS3 also receiving a hefty price cut? gotta love fanboys!

[Isaac]

That is why PS3 is cheaper than 360. Oh wait.

[Rageanitus]

Was a bit more desparate last year because they were trying to penetrate the market when they had opposition from all fronts wii, xbox, and ps2...

But now they dont have to be as desparate as MS

[Isaac]

They were selling a product with a way more expensive price point. They were definitely at a disadvantage, so they were hardly desperate. Desperate had they launched cheaper than 360, desperate had they tied prices with 360, but no, they are still selling a more expensive product. Hardly desperate.

If Microsoft is gonna make a huge price drop, then they are definitely desperate, as they are selling a product which is much cheaper than PS3 and much more technologically advanced than Wii (but don't get your hopes up, Xbots, it's still inferior).

[LuHawk]

Wrong dumb ass the ps3 is inferior

[etownone]

wayyyyyy overdue!!!!

when the 40 gig blu-ray/ps3 player came out for $399 there should have been a price cut.

arcade - $199 (bundled with the 5 arcade games)
pro - $250 (bundled with a game)
elite - $350 (bundled with a game)

And drop the prices of those damn hard drives!!
20 gig HD - $40
120 gig HD - $120

[dikturbo]

New Arcade SKU (with new Newton motion controller)/256MB and new packaged Newton game for $199
New Premium SKU upgraded to new 60GB HD for $249
Elite SKu for $299

Current gen gamers will not buy the Newton peripheral separately, however the new Newton SKU (priced below the Wii) with a game will convert potential Wii buyers to new 360 owvners.

My thoughts only.

[Aclay]

Rumors, Rumors, Rumors.

I remember in one of EGM's earlier magazine issues this year they had a "rumor" that the 40GB PS3's price could be cut to $299 around E3 or sometime after E3, and now it looks like Sony might not be dropping the price at all.

If Microsoft drops the price on the 360, then Sony will most likely be dropping the PS3's price by $50 bucks at least. But honestly I'm not worried about the 360's price dropping a lot and being a threat to the PS3 because the PS3 has been outselling the 360 worldwide with a higher price and has even outsold the 360 in the U.S. a few times this year with a higher price, so I doubt that Microsoft's price drop will do a lot for the 360 in the United States... I mean, the 360 Arcarde is just $30 bucks more expensive than the Wii in the U.S., so why did the PS3 outsell the 360 in May and why did 360 sales remain almost unchanged from April to May? Not worried at all.

Even if Microsoft drops the price of the 360 in the U.S. so that it's cheaper than the Wii, Casual gamers are still going to get the Wii regardless because in Europe the 360 is CHEAPER than the Wii, but the Wii outsells the 360 like crazy and because Casual gamers want games that are on the Wii (Wii Fit, Mario Kart Wii, SSBB, Super Mario Galaxy, etc...) and there's more Casual games on the Wii as well.

[eagle21]

It takes so much more than just a cheap console. Remember last generation? Prices slashed and slashed. There is no substitute for what you want these days.

E3 will make many undecided hardcore gamers (mostly USA) see which system PS3 or 360 will have the most fall momentum and for 2009.

MS has to make it through the Summer, let alone Fall and Winter. There are so many other factors for why many are choosing PS3 over 360. :)

[juuken]

Yes, a rumor is a rumor.

[plenty a tool]

outsold outsold outsold...outsold has gotta be one of the biggest fanboy words in the fanboy dictionary.

anyway. aclayps3 i saw you omitted the fact that the wii is stomping sony in a big way also! the few times this year that sony have managed to sell more in the states were following the blu-ray victory, and the run up to mgs. sony will beat microsoft in june also.

but sales will fall back after that! if microsoft slash the price in NA(they've not had to yet because they've been competing with the market leader for a decade with relative ease, i know fanboys like you three tend to ingore that fact), they will see a sustained increase in sales, not a mgs fuelled spurt.

i would like to see sony slash the prices, and cost themselves even more! they're not making as much software royalties either with their lower software attach ratio!

but everytime i see you post, you just solidify your position as a know nothing fanboy.

[juuken]

tool, how are we fanboys? Aclay brought up a good point. Both me and eagle said that it was good. Perhaps you need to remove the goggles for a second before you leap to conclusions so quickly.

[SkyGamer]

I don't know if sony can cut the ps3 by much as they don't own the rsx by nvidia. I can see a repeat of what happened last gen with Xbox. They don't own bluetooth tech and a bunch of stuff. I can see the elite go for 350, premium 250 and arcade for 150-180. That would mean that two models would be cheaper than the Wii. That ought to boost up sales. I think the reason now is because they see the 400 model as not that much more than the premium and with blu-ray people see it as viable. Now with the elite being cheaper and the premium being A LOT cheaper, they will start to weigh out the differences. I also think that many people believe that sony has this amazing library and are oblivious to the actual reality as a lot of people are coming off the ps2 thinking sony has a grip on this gen. If I were Microsoft, I would clearly market the differences with this price cut and use it to their advantage.

[power of Green]

Doesn't matter if Sony can do it or when and by how much.

Once one of the powerful consoles hits the mass market range it will be appealing to the masses you know the casual trend consumers that makes up the bulk of consumers willing to invest in gaming. If MSFT can lower the price so people don't think to themselfs *why is the 360 price even close to PS3's price when PS3 has a state of the art DVD player built in* the 360 will win with the help of *newton*.

[etownone]

being that the only difference in the sku's is the HDD...

get rid of the elite and the pro and just sell the arcade at $199 and drop the price on those damn hard drives.

:)

[MANCREEP]

With improved Hardware, and a cheaper price, it'll a great machine.

I bought my PS3 from WalMart, but I should have bought it from Craigslist, alot of people are selling their PS3's for cheap.

The PS3 price drop was nice. If the system had stayed at 600 dollars, it would have been in the same boat it was in last year. After the price drop things started to pick up, in relation to sales---just Check the NPD charts. The 360 went thru 2 price cuts before the PS3. Sony seemed to be more about the Blu-ray drive inside the PS3, back then.

[kewlkat007]

I've had my ELITE with no issues whatsoever...

A price-cut just before Fable and some other goodies sounds perfect to me.

As always only PS3 *only fans complain/downplay price-cuts of the competitor...

Price-cut can only help everyone, maybe Sony might bite but I doubt they are making much on the PS3 after hearing those loses. It would only be cutting into profits.

Again a big risk at the cost of gaining consumers but if the PS3 is selling why would they wanna cut into their profits so soon?

Still a Price-Cut for any console is great news, no need to be a SOURFART about it.

[Willio]

price cuts are awesome, gamers pay cheaper. we win, fanboys lose

[DJ]

The identical info saying the PS3 will get a hefty cut is also awesome. Seriously, if you can get a PS3 for $299 that is a HUGE deal.

[ThanatosDMC]

You can technically get the PS3 40gig version for $299 all ready. Just go to walmart.

[ThatCanadianGuy]

Maybe i'll pick one up to fix that wobble on my desk.

[mirroredderorrim]

This is a little hazy to view. But I think Sony plans to make their money back using 1st party cash flow. These sons of b!tches know what they are doing. It is fishy to me that they would just release such heavy losses like that, publicly ($3billion+). But in the end, everyone who follows the industry should know they EXPECTED to lose on the PS3.

Sony said they would take a heavy loss, but assured their investors that in the long run it will pay off. It's some oldschool investment tactics. It's a plan, not some short scheme. If they do a simultaneous price cut with Xbox 360, it could hurt the 360 who did a price cut in the first place just to compete. Which would null their price cut in terms of making revenue. Gamers win, though, obviously.

Edit: lastly.. someone said it best on here few days back " it takes money to make money"
It's old business logic. If Sony is following this logic, I believe they are taking the investment hit they need just so they can bounce back. In terms of Microsoft, they are taking hits from all over. I know they make a lot of revenue per day, per second even, but they are also outsourcing revenue as fast or faster. I don't see Sony doing this.. they keep investing internally and on Sony focused projects, same as Microsoft, but are more directive than Microsoft, with their funds.

[Enterprise-E]

With one exception. I can see them doing a press cut when Gears of War 2 comes out and that will boost sales. Before or during E3 highly unlikely you will see a price cut.

[dikturbo]

New Arcade SKU (with new Newton motion controller)/256MB and new packaged Newton game for $199
New Premium SKU upgraded to new 60GB HD for $249
Elite SKu for $299

Historically, console owners will not buy peripherals separately, however the new Newton SKU (priced below or at par with the Wii) with a game will convert potential Wii buyers to new 360 owners.

My thoughts only.

[air1]

do you sony fanatics scream about no hd on the arcade model? you ppl are to slanted to buy a 360 anyway. why cant you ppl grasp the concept that YOU CAN UPGRADE LATER. f*ck look at how well the wii is doing, does it have a hd.

then you ppl use the excuse you will not buy one until the rrod is fixed. please, you know damn well if that's what is holding you back you do not plan on buying one. you ppl act like if it happens every other week. it happened to me over 1 year later and took 2 weeks for another and guess what, i didnt need a damn receipt just the serial number and done. you sony hero's read too many horror stories on the net. ppl that been through like 8 consoles in my opinion is complete b/s even if they did they must of kept the damn thing in there drawer or something.

why is it that when micro does a price cut you fanatics take it so bad? they are doing it for YOU, you know the idiot that bought the ps3 at launch for 600 when it had no killer exclusive and you still had to drop more money to get hd out of the super supreme ps3.

ohh, and what did sony do for you when the ps2 had the dre problem? not a damn thing but you still went and bought another with no prob. but now the 360 is a tough buy for you even with a warranty? you ps3 hero's need to wipe sony's jizz out ur eye's.

[Willio]

quite a harsh statement. But no hardcore gamers want to buy an arcade version without a harddrive. its quite expensive. As for the *idiots* who spent 600 on launch, its unfortunate for them to resell them at ebay to rich fathers who spent over $2k for the very same system.

And if you are going to bring up the past, ps3 fanboys can also say *what did MS do when Xbox discontinued their support?*

[Testo]

" Why do you sony fanatics scream about no hd on the arcade model? you ppl are to slanted to buy a 360 anyway. why cant you ppl grasp the concept that YOU CAN UPGRADE LATER."

You could call me a fanboy if you want but I DID buy an Xbox 360 arcade bundle so I have the right to complain about:

Not being able to get the GTA4 DLC
Not being able to play Halo 3 Coop online
Having to pay over $100 for old outdated hardware which should be offered for 1/4 of the price.

It's a slap in the face for any gamer.

[THAMMER1]

Now all the people I know who want to jump in can finally do it. Just in time for Gears Of War folks.

I'm not picking up a PS3 until $199.00 or less. 60 or 80 gig only. Why not wait until SONY fully evolves the PS3 into a Game machine that can keep pace with 360. We all know how the emotion engine turned out with the PS2.

[Willio]

i really dont see ps3 dropping prices to 200 within the next 3 years. The Wii and Arcade xbox isnt even 200.

[PoSTedUP]

looks like the ps3 is picking up pace for not being a games machine, wonder whats going to happen when it becomes a games machine. this price cut should do the 360 some good.

[hotrider12]

prices go down. if ever??? to 250.00 mark then more gamers will buy, ps3
will feel competitive to wii but buy then wii will be 149.00 maybe?? im sure nintendo will have a price cut sooner or later. dont forget about them guys

[xboxftw]

LOL @ droids.... MS drops the price and its end of 360. As others have pointed out, ur precious pos3 wouldn't sell at the ridiculous launch price and was dropped twice in its first year, with skus being dropped left right and center in order to confuse people. Ok forget that, what do you call throwing in free pS3 for people buying bravia?? "DESPERATION..movement of Dead stock"?

If i dint hv HDTV already i might have bought a bravia and used the pos3 as a foot stool to warm my feet during winter.

[caffman]

on the launch night in the UK, they were giving away a bravia TV with the PS3!

[ThatCanadianGuy]

Arent they constantly giving away 360's for free?
everytime i watch tv it's always some new "give-away contest"
like just this morning i seen a simpson's 360 contest

...LOL! giving them away..now THAT'S desperate,there trying to hook and reel in every last gamer out there.

[TheBadOne]

If u ask me .............i think sony needs more of a price cut than microsoft

[RememberThe357]

No one asked you ;)

But I agree. Probably before the holidays.

[air1]

if your a hardcore gamer you wouldnt buy the arcade duh. arcade is more for the wii ppl of the world you see how blind you sony heros are.

ms came out with the 360 and proved that it can bring more games to the table to bad ppl like you cant see what is happening TODAY. yea the ps3 is moving up but why cause of one game? isnt the sony motto we wont buy a console for 1 game?

notice how no sony fanatic has anything to say about the dre prob on ps2.. you know damn well that next gen's excuse for not getting an xbox would be rrod hell you sony fans might hold on to that for the gen after that

[Testo]

Your comments are becoming more ignorant.

"if your a hardcore gamer you wouldnt buy the arcade duh."

So, since I wanted to save cash with buying the arcade (all you guys said the HDD for the 360 isn't needed) Now I'm not a "hardcore gamer"

Sorry you Halo gamers are too h@Rdc0r3 and L337 for me I guess.

[RememberThe357]

Price cuts are coming. The U.S. is in a rescission and people are freaking out about gas. The Video game industry can capitalize on this even with the weak dolor. People in the U.S. are freakin out. The presidential election and the War people are just not that happy with what is going on(our congress just got a 18.5% approval rating, thats lower than Bush!). The point is that Sony and Microsoft can capitalize on this buy just lowering the price of they're hard ware. I know that Sony would have a very hard time making money after a price cut but I think it's needed. Sony needs to gain significant market position to make the real money. They have taken a huge hit thanks to the catastrophic mismanagement of the launch. However they have already nearly cut losses in half. More over, this holiday, In my opinion, may be better than '07. Microsoft Is in a great position to finally start making money from they're gaming division, however they need to focus on expanding in the markets out side the U.S. of A. Form what I've been hearing they're not doing so hot in Japan (/sarcasm), and Europe isn't looking too good either. Cutting price didn't have much of an effect in the long run so I think they need to start looking at a different approach for they territories. Maybe a bit of a face lift. Some adds to shift public perception maybe.

Overall, Sony is in the hottest water they need to start moving software and this years line up (and next years for that matter) look like they may be able to do that. Microsoft already has a great back log of games that move so I think they're doing OK.

Please let me know if I completely botched something so I can fix it, unless you don't agree with me or something... Well, let me know that too. Lets have some conversation people!

[Says you]

More wrong Sony cant lose billions more considering your just trying to put Sony down and plus the production for the PS3 is not that expensive nice try though and oh Microsoft hasn't been making a profit considering they would keep cycling there money that they made and spend it on there repairs for there console and keep buying time exclusive deals

so yeah I don't know what your talking about since there division isn't making any money from there system even if they did! they would just re-spend it for there console and buying time exclusive

and you think they have better financial"s? you do know there depending on one system while Sony is depending on all 3 meaning PS2 PSP PS3 where as Microsoft is only supporting one

so who has a better financial"s??.

[azmanmanz]

Microsoft shall lower the XBOX360 price to USD "0.00" because thier console is crap.

[f789790]

Or Microsoft would rule us all.

also....
The Xbox 360 has already proven you can play today's best games without a HDD, games like HDD is NOT needed. and the 360 has already proved it with games like Bioshock, Halo 3, Mass Effect, GTA4, COD4, HL2, and Oblivion.

I like how FIVE out of those seven games are on the pc.

[air1]

i think micro should concentrate on na more. this is were it is selling they have to start somewhere if they take over na it will be the first in how long then they can go after other places next time around. sony is no push over to just come in and take over the world sales with just a second console in the market. sony has a huge loyal fan base just look at this web page.

bubbles please

[RememberThe357]

I agree, but don't ask for bubble...

[Product]

you ps3 fans better read this if you ever think a price cut is coming
http://ps3.ign.com/articles...

[BrotherNick]

Damn, you can't maintain a business with such a big loss :( 3.3 billion is a lot.

[crom]

ms is not dying and sony is also not going away; both are too big of a corp to go away. at the moment, it's about how many consoles could be moved while maxamizing their pocketbook. kimbo was right about how much sony was losing. 3 billion plus was the number given i read from one rep. site. if you just focus on pocket change, ms is in better shape. even if sony was to overtake ms in the num. of consoles sold, ms will still make money. they might even be in better shape financially than sony.

[Bartosss]

Demn i have to sell mine quick then

[caffman]

360(premium)was £289
PS3 was £425

Now the prices are
360(premium) £225
PS3 is £299

so the 360 has dropped in price by £64. The PS3 has dropped by £126. Does that not say that Sony are more desperate than MS? Or that they are being competitive?

[Spydiggity]

cut their prices. this generation is half over. the majority of system sales are done. decrease inventory, move hardware, move a lot of software. it makes sense.

and for fanboys...shut up. get over it, and umm...SHUT UP.

oh and grow up too.

nobody is beating anyone too bad. every system has its sellers, every system has it's high points and low points. Wii is cheap, and it's easily accessible to everyone. 360 has a ton of great titles, it's the middle bargain, and it has a really strong online community. PS3 has MGS (probably game of the year (unless GoW 2 lives up to the hype)), and it's online gaming is free.

360 sells more software, wii sells more hardware, and ps3 falls in the middle.

stop being an idiot fanboy and just realize this generation has hit a much needed equilibrium so that we can see healthy competition.

i am SO SICK of listening to fanboys go on and on. and i'm sorry ps3 fanboys, but you guys take it too far. you go out of your way to give negative feedbacks to people for absolutely no reason. i posted an article about MGS not being the greatest game of all time but still said i love it and think it's very very good. i got PMs saying that i should kill myself. pretty insane if you ask me.

bottom line. no system is struggling, all are doing okay, and everyone should buy systems based on the exclusive titles that they love. if you like final fantasy, get a ps3. if you like gow and halo, get an xbox. if you like mario (and who doesn't), get a wii.

just have fun, and stop making ridiculous articles like this popular cuz you want to use them to rub it in the faces of other people who don't share your opinion. if you are so over opinionated that you need to force ppl to think how you do, you should NOT be on a website for gamers. you should join Fox and help them spread propaganda.

when it comes to games, YOUR opinion does NOT matter. i like what i like, you like what you like. and if you have a problem with that, cry me a river, Justin. and if you don't, send me a message or hit me up on xbox live and we can find a game we all enjoy and play it together.

[strotee]

"the majority of system sales are done"

If I follow your logic, the 360 won't sell 40 million consoles and the PS3 won't sell 30 million consoles?

Please tell me you didn't actually mean we're past the half-way point of sales for this entire generation.

[codeazrael]

I mean damn! Microsoft is up on their sh*t! Why rush for a price cut when you are still getting comparable sales to the competition? So can you imagine when these actual "beefy" price drops come??? And with Sony pinned in the corner after they have already cut prices several times, including day one in Japan, and after discontinuing sku after sku, someone else said it best when they said that Sony shouldnt focus on trying to be number one this generation, they just better find a niche, settle for third place, and not even expect a profit this go round. And before I'm bashed by ps3 gamers, the Xbox 1 NEVER seen a profit in its lifespan, and that wasnt with it having state of the art tech like the PS3, so even if the PS3 truly is a 10 year machine, by then the price will be so low that their will still not be enough money made by Sony to turn a profit. Ill go a bit further, if Microsoft releases the "Nextbox" by the end of 2010 or even by the end of 2011, that means Sony will be yet late again releasing the PS4 (which I said once Microsoft got the jump on releasing before Sony that Microsoft will never give up that headstart, ever) and thus will be scrapping internally to get the PS4 out at least within a year of the "Nextbox" releasing, and that will put alot less focus on the by then dying PS3.

Forget 1st, 2nd, or 3rd place this console generation, it doesnt matter more than profitability. For example, if you had two companies selling doughnuts, and after one year company A sold 1 million doughnuts more than Company B, making company A sales 2 million doughnuts sold at $1, vs. company B sales of 1 million doughnuts at $3, and both companies having the same overhead, which company would you rather own, company A where they sold 2 million doughnuts and made $2 million dollars, or would you rather be company B where they only sold 1 million doughnuts, but made $3 million dollars PLUS...kept more of their money, because selling less doughnuts meant less employees company B having to pay, less money gone towards power and other fees that company A have to pay for selling their doughnuts for less of a profit.

You get my point!

[BrotherNick]

Man, if the 360 gets to the magical 200 dollar point, I may get it.

[thenerd007]

i think this just proves microsoft is getting a little desperate. lol ps3 ftw!!!!!!!

[THE_JUDGE]

Why was this approved???? Mart is one of the main contributors to this site. This is a bunch of bs!!! Even if they do drop the price I won't get it because an extreme lack of quality in the hardware department.

[PSWe60]

especially in Japan, Europe and in the Asian nations where the 3rd60 is pretty dead.

PUTO Bots should be happy about this, soon the 3rd60 will go the way of the HDDVD.

JUMP OUT

[Hoggy1983]

Lower the price of its system and introduce the Newton. That way, existing Wii owners may join the Xbox party; incentivised by the systems existing catalogue of games. Then some successful Wii games will be ported over. This way Microsoft can barrage consumers with cheesy adverts showing families/friends prancing round their living room play "Newton Kung Fu." Whilst adding to their market share MS can appease the hardcore crowd with RPG's plus nce footage of Gears of War 2 + Online setup. To be honest, if MS doesnt do this it might have missed a trick.

[AngryTypingGuy]

Getting the 360 closer to the magic $199 price point just in time for fall's heavy-hitters including Gears of War 2 is a great move on MS's part. It will definitely help sales.

[SKullDugger]

@ OTHERZINC the PS3 went from 499.99 for the 60GB to 399.99 for the 40GB and for awhile 499.99 for the LE 80GB Motorstorm bundle and now the 80GB MGS4 bundle with a dualshock control and sells for 499.99. Please get your facts correct ok!

[Spydiggity]

playstation was originally 499.99 for the low end version. and it was 599.99 for the 60gig. then they changed it to 499.99 for 80g and 399.99 for the 40g. you're right about the bundle deal though.

[Egzekutor]

US didnt get the price cut because it was doing good in US, they are desperately cutting the price where XBOX 360 sells at a poor rate..
No wonder that they are going to cut the price even more... the console war is almost over.. you can tell by the way MIcrosoft acts..

Which console producer would ever cut the price soo much after launching ?

[air1]

fine, i wont ask... ill tell you then.. give me bubbles mofo..