Top
590°

Microsoft And Nintendo Drop Prices In The Wake Of New PS3 Model

Maxwell M.:

Early this morning, Nintendo announced that it would be dropping the price of the Nintendo Wii in North America from $149 to $129. This is, presumably, to cash in on the bargain hunters during the holiday season and make way for the release of the Wii U on November 18th of this year. This was almost immediately followed by Microsoft's announcement that it would be dropping the price of its Xbox 360 bundles by $50, to $249.

Sony just cannot seem to catch a break. Nintendo has held the total market share in North America for the entire generation, while the 360 has been able to outpace the Playstation 3 console in North America for the last 21 months straight. While the worldwide total puts the 360 and the PS3 neck-and-neck, the PS3 is very far behind in North America. Sony saw an opportunity to release a new, slimmer SKU of the PS3 last month, bundled with the critically acclaimed Uncharted 3 for $269. Armed with a slew of first party exclusives due out this fall, Sony seemed set to take the Wii U head on, priced just under the cheaper of the two Wii U SKU's. But these price drops may prove to be detrimental.

The story is too old to be commented.
Beatboxtaun1377d ago

No, a price drop usually comes when a new system is launching. The Wii U caused the price drop of its predecessor. I'm sure there may have been one with the new PS3 model, if there was no Wii. But, it's due to the Wii U. It's only a $20 drop. blah Not that I need another one. But, it's a good system for Christmas gifts. Also, I didn't care for the George Foreman look of the new PS3 model. Good thing I'm set on the PS3s in my house, as well.

Nutsack1377d ago

And how do you explain the 360 rebate of 50 bucks on all models then?

Certainly seems that at least MS is trying to outdo Sony on price this Christmas.

The Wii drop is debatable as it already was a lot cheaper than both 360 and PS3. Then again the Wii is just an overclocked Gamecube, and the Gamecube was dumped for 79 bucks when the Wii got on sale. Looking at how old the Wii's hardware is, it should be under 100 already, when it launched for 250 in 2006.

WiiU - Rated U for Upgrade

Beatboxtaun1377d ago

You're right; the Wii should be at about $99 retail. When I read about the price drop yesterday, I expected to see that price tag. Now, it could be because it is a "bundle". It doesn't matter how old the games are that they are giving with it, it's still considered a "bundle" That could be why it's at the $129.

I'm not saying that it is not being dropped to compete with holiday prices. It would be stupid of Nintendo to disregard that aspect altogether. What I am saying is that Nintendo had a price drop on the DSs when the 3DS came out and then on the 3DS when the 3DS XL came out. I was pointing out the pattern that should be the norm in the industry. Consumers expect a price drop on the older system when a new one comes out. $20? That's perfect for Nintendo to offer some type of drop and still cash out a bit.

Beatboxtaun1377d ago

But again, I'm saying that from a company's standpoint. lol at "Wii U - Rated U for Upgrade "

bryam19821377d ago (Edited 1377d ago )

Man u got general lx kaos really bad over there lol rated U for upgrade :D

ronin4life1377d ago

You seen to say "u for upgrade" as if you are insulting the wiiu... but ALL next gen systems ARE. "upgrades"...

And on the price drop; they would have happened regardless of the PS3slim 2 because of the wiiu, slowing hardware sales and holiday season enticement. The new PS3 model Is just Sony's own version of this.

gamingGod1231377d ago SpamShow
testerg351377d ago

gamingGod123, so what is when the same thing happens to the PS3 during the holidays?

DivineAssault 1377d ago

@ ronin4life, are you intimidated by PS? Seems like every good thing that happens for it, u get real defensive & start bringing up nintendo stuff.. Nintendo is in its own category man.. Theyre great in their own way but they cant compete directly with MS & PS.. That would be suicide dude.. The wii u has an impressive amount of power that exceeds current gen machines & all but theres nothing it has that cant be done on these old boys.. If anything, PS/MS have MORE features n options (online, trophies, media, etc) at the moment.. It will take an entire generation for them to catch up to the options available on psn/xbl..

Wii u has potential to do wonderful things & no doubt it will (especially 1st party) but if PS/MS nx gen machines roll out before that happens, its going to be a repeat of this gen except that casuals & others wont go nuts over nintendo this time around..

Nintendo knows how to sell & theyre doing great right now moving in the right direction but 3rd party publishers are still hesitant with software.. Look at 3DS, all those sales but few core 3rd party games.. They struggle to sell on nintendo systems.. Except games like DQ & MH in japan..

ronin4life1377d ago

@Divine
I didn't say anything bad about Sony here. It is also hard to feel "threatened" by a game console.

When I point out "negative" sides in positive stories(which I wasn't aware this was one or the other) I am stating static truths and predictions based on those solid apparent fact. And it isn't just Sony; I am uncertain the wiiu will meet Nintendo's predictions(as I was with the launch of 3ds, though not as doubtful now as I was then), I believe Microsoft is becoming increasingly irrelevant to the gaming media and had lamented Nintendo's poor e3 showing.

But in my eyes, Sony just has more weighed against them, indicative of a company that has lost nearly 90% of itself in 10 years. (Although MS Xbox "irrelevancy" may be far more damming if they don't do something about it...)

ItsTrue1377d ago

" They literally are trying to give Xbox systems away to meet their quota. They did the same thing last year and the year before that."

Yeah isn't it great? We get consoles for so cheap, they must care about gamers rather than profit after all!

sikbeta1377d ago

@Nutsack

MS trying to actually COMPETE? it's not like they'd lose hope and let the Wii-U take all the sales it can, don't you think?

O-T

Title is wrong, new PS3 model is not a threat, looks like a more expensive downgrage compared to the V1 Slim, MS will try to keep getting the most sales it can, that's why they'll cut prices

legendoflex1377d ago

"And how do you explain the 360 rebate of 50 bucks on all models then?"

Also Wii U.

knowyourstuff1376d ago

Of course, when you can't compete on features, functionality, exclusives or services, all you can do is compete on price.

Although the Wii's price drop is more likely to be a result of the new Wii U coming out.

fjtorres1376d ago

Well, MS did recently drop the price of the Kinect Sensor by $40 without dropping the price of the bundles so $50 on the Kinect bundles is just keeping up with *that* price drop. As of this morning, the base 4GB 360 is still $199 so it's just the Kinect bundles getting discounted.

At this point it isn't clear that either MS or Nintendo care about PS3 pricing. They're actually more interested in taking care of their own businesses.
Given the bundle-only distribution of the flip-top PS3 it isn't even clear the PS3 got a price cut at *all*.

+ Show (10) more repliesLast reply 1376d ago
Masane1377d ago SpamShow
tuanmatized1377d ago

Knock out the Fat!

just like Sony is trying to

Knock out the competition!

they're trying to, at least. Not doing a good job, though

shenpo_shin1377d ago

if they r not doing a good job then why the ps3 outsells the xbox WORLDWIDE for more than 3 years?

why they close the huge gap of 9.2mil to 1.8mil ?

if u ask me sony is doing a great job

Armyntt1377d ago

@shenpo, I agree and disagree with your comment. I agree that Sony is doing great in terms of sales and the quality of the games it releases but i disagree in that Sony has also done a poor job in that MS should have been passed years ago. Sony should have passed MS in terms of sales within a few years after release if not its a failure in that MS was able to grab such a large market share in such a short period of time. MS has everything to be happy about in terms of "sales". BTW who actually gives two $hit$ about $ales? How does how well a company do in comparison to its competitors make your recreational gaming any better. If Sony/MS were to do so well that the competition bows out, how does that make your gaming any better?

Edward751376d ago (Edited 1376d ago )

@ shenpo

If you sell 100 ps3 systems....
And sell 100 360 systems...

You make more profit on the 360 systems....

Profit. That is why they haven't dropped the price of the new er slim model.

Why it is that the 360 has had a higher attach rate for this gen, especially early on, and the money MS makes off of xbl is amazing. It is profit. Who cares if they sell the exact same, MS is making more money from each sale.

Xbl and gold* not just xbl......

NastyLeftHook01377d ago

IM HOPING FOR THE PS4. remember those christmas mornings with gingerbread cookies and waiting for a ps4!? me neither! but i want one!

greenpowerz1377d ago (Edited 1377d ago )

Yes MSFT and Nintendo droppd the price because of PS3's second redesign :p yeah!!! Right!!!!

Nintendo is putting the Wii in retirement status and MSFT is trying to compete against Wii and Wii U. I don't think MSFT has ever really worried about the PS3 during the holidays in any strategically exclusive way.

Sony can't catch a break because the demand for PS3 has diminished and the brand recognition has eroded over the years getting worse as time goes on.

The new PS3 slim is a reaction to what MSFT and Nintendo is doing not the other way around. Wii U and Kinect.

Wii would obvilously drop in price regardless of what MSFT and Sony is doing. MSFT wants to detour cunsumers from the Wii U doing all they can to slow the adoption rate of the Wii U while they prepare for their own next gen console. I'd be surprised if MSFT is even factoring Sony in their positioning to beat Nintendo right now.

nukeitall1377d ago

With how old the Xbox 360 is, it is amazing how it held it's price for so long. This price drop was inevtiable, and is more a reaction to Wii u and then an increased priced PS3.

It was just bound to happen, especially if MS is intending to release a new Xbox. next year. Try to slow down the competition from getting a foot hold while you attack them with a new product.

Sounds like a genius move. If MS was threatened by Sony, it would have been last year when Sony had a price cut on the PS3. That price drop didn't do much....

gameplayingfool1377d ago

probably has more to do with the release of wii u and the holiday shopping season.

geddesmond1377d ago

Nah I think the slimmer PS3 model was made just to cut manufacture costs and generate hype among PS3 fans. I don't think it had anything to do with taking hype away from the Wii U. If people want a Wii U they'll buy one regardless.

As for the Wii price drop. I think that might bite Nintendo in the ass this holiday and get people buying the Wii instead of the Wii U.

humbleopinion1376d ago

It actually does both: a downgraded cheaper model saves costs, and at the same time can be sold to the uninformed customer as a new console to compete with the WiiU.
"Come here friend! Are you looking for a brand new WiiU for your kids? Forget about it, you can buy our brand New PS3S! Fully compatible with all our older PS3 games!"

showtimefolks1377d ago

So north america is the world? I guess ps3 has failed even though it has outsold xbox360 since launch?

This holiday season for Sony ts about making a profit so maybe they won't sell crazy numbers but what they do sell will make a profit in return which they really need to do since they been in RED. On one hand people want to know why any is loosing money in the other it's why don't they drop prices? Are some of y'all fanboys who are writing these any doom articles stupid or dumb? Or maybe both?

Vita just launched and holiday season has a good lineup so why drop the price? And ps3 is now just making profit so they should drop the price why? Because a last gen non had wii console has done so? Or because MS who have been selling a $199 xbox360 for a while ow?

Make sense use your brain some it's there for a reason.

Sony is also one of the biggest publishers so they have a lot of software sales too so it's just not the consoles.

A500gb with AC3 for 300 means the console is $240 plus you getting extra hard drive space. Now casuals will buy wiiu since its new system but informed gamers will choose between xbox360 and ps3 depending on which bundle they like

Not saying wiiu is for casuals what I mean is a lot of parents buy gifts and stuff and they just buy what ever is new so in this case wiiu

StreetsofRage1377d ago

Again, the xbox 360 has outsold the ps3 worldwide since 2011. so many misinformed people on here. :/

Lvl_up_gamer1377d ago (Edited 1377d ago )

@ showtimefolks

Ps3 certainly has been outselling the 360 "almost" on a yearly basis...but your comment:

"I guess ps3 has failed even though it has outsold xbox360 since launch?"

Is completely false.

Between 2006-2007 the 360 outsold the PS3. We are ALL aware of the poor sales the PS3 had due to cost. So this isn't even up for debate.

From 2007-2008 the 360 once again outsold the PS3 AGAIN due to the PS3 still being over priced HOWEVER did cut into the 360's lead right after the first initial Sony Price Drop.

From 2009-2010 the PS3 outsold the 360 simply due to another price drop and the introduction of the new and sleeker PS3 Slim.

From 2010-2011 AGAIN the PS3 outsold the 360 with it's cheaper and sleeker PS3 Slim model AND the lack of a 360 price drop.

From 2011-2012 the 360 outsold the PS3 simply because of the record breaking sales for the peripheral Kinect selling 10 million units in a measly 5 months.

From 2012-2013 ??? Still up for grabs for either of the 2 major HD consoles.

http://www.vgchartz.com/too...
If you have a better source to track world wide records I would be more then happy to use it.

http://www.pcworld.com/arti...

MrBeatdown1376d ago (Edited 1376d ago )

@Lvl_up_gamer

There's nothing false about his comment...

"I guess ps3 has failed even though it has outsold xbox360 since launch?"

You are breaking it down into years. He's clearly not doing the same. He's talking about all years combined, which is just as valid a perspective as the yearly breakdown. And in that case, he is entirely accurate. PS3 has outsold the 360 since launch. That's why the gap between PS3 and 360 is smaller today than it was when PS3 launched. To argue with him is to argue with basic math. If he had said the PS3 outsold the 360 EVERY YEAR since launch, then that would be false, but he didn't say that.

You can break it down further into years if you want, but anyone could just as easily say what you said is false if we broke down your timeframes further.

PS3 outsold 360 for most of 2011. 360 only regained ground and passed PS3 in yearly sales during the final few months of the year.

PS3
Q1-3: 7.6
Q4: 6.5
Total: 14.1 million

360
Q1-3: 6.7
Q4: 8.2
Total: 14.9 million

http://www.geekwire.com/201...

aceitman1377d ago

The article says ps3 and 360 are neck and neck world wide that's false .Sony is leading world wide .they sold 90,000 more than the 360 last week .

cedaridge1377d ago

AGREE! Wii U is causing the price drop not the latest ps3 model. But $50. is $50 dollars and that is a good move by Microsoft to stay 1 step in head of Sony and the ps3. psn: cedaridge

Pillsbury11376d ago

Giving away razors to sell the blades ;)

+ Show (9) more repliesLast reply 1376d ago
dedicatedtogamers1377d ago

Translation: now is a better time than ever to pick up a new console (if you happen to need one).

LX-General-Kaos1377d ago (Edited 1377d ago )

Sounds like smart business strategy as usual from the likes of Microsoft and Nintendo. Both corporations are known to hold it down during the holiday season. This will be no different as I expect to see maximum sales from both brands when sales data is released.

A price cut for the Nintendo Wii entertainment system will give the platform a proper send off into the sunset for the remainder of the year. Delivering a fine push to the current generation finish line in the wake of release of the Nintendo Wii U entertainment system.

I see the Xbox 360 delivering strong sales as well with their own 50 dollar price cut. Especially combined with the soon to be released industry leading first person shooter exclusive HALO 4. And the highest rated racing simulator Forza makes a comeback as well to compliment the price cut.

Low affordable pricing strategy is key during the holiday season.

Rated E For Everyone

GribbleGrunger1377d ago (Edited 1377d ago )

I can't disagree with that but what I can do is add a caveat. Sony have still got the older slims out there in retailers, so clearly they'll want to clear those before they fully commit to the slimmer's strategy.

This is why we only saw bundles to begin with. It was a way of gaining some extra profit from those who could not resist, and it was also a motive for people to go out and grab the original slim before stocks were exhausted.

By removing the RRP, Sony have effectively removed a decipherable price point which makes it very difficult for both Microsoft and Nintendo to align their pricing. The blurriness of Sony strategy at the moment may well upset consumers, but it also confuses their rivals

We are already seeing cuts here in Europe, with the £159 PS3 at HMV and £158 PS3 at Amazon, and I doubt that's the sticking point going into Christmas. As retailers vie for those seasonal shoppers, they will cut away at that price and probably bring it below the £150 mark.

America is a given: The 360 and Nintendo rule Christmas over there, but Sony have been focusing on Europe for many years now and it's here that you will see the most significant PS3 sales. Sony won't outsell either console this Christmas ... they never do, but I have a feeling they'll do better this year than last.

LX-General-Kaos1377d ago (Edited 1377d ago )

I do agree that Sony is doing whats necessary for them to turn a profit and clear out existing inventory of the older model PS3. Though I disagree on the thought of Microsoft and Nintendo being confused by Sony's pricing strategy. I believe that Microsoft and Nintendo have aligned their pricing just fine. Especially Microsoft at this point. Microsoft is preparing to deliver the most anticipated, highest rated exclusive shooter this gen to compliment their price cut.

Nintendo Likely does not care too much seeing that the Nintendo Wii U entertainment system is going to pretty much sell out arrival. They are just garnering extra sales from their older console before the end of this current generation. Which ends for Nintendo on November 28th. Nintendo at this point will offer the consumer a next generation platform, a current generation platform, and the industry leading handheld all at once this holiday season. I see no confusion as of right now.

Rated E For Everyone

GribbleGrunger1377d ago (Edited 1377d ago )

What is the price of the standalone Slimmer in America? Will Sony release a 12GB Slimmer in America? What MOVE bundles or possible Vita/PS3 bundles will there be? There is definite uncertainty from Sony in Europe and certainly in America... is that by design or is it just the way it is. We'll just have to wait and see, but I don't think what we've seen so far is what Sony intend to take into the holiday season.

Perhaps Sony wanted them to make their move first and the Slimmer has certainly done that. We'll see.

WiiLovePS3601376d ago (Edited 1376d ago )

GribbleGrunger

"By removing the RRP, Sony have effectively removed a decipherable price point which makes it very difficult for both Microsoft and Nintendo to align their pricing"

Can you please provide a source that states that Sony have not set an RRP for the new PS3? I know that they didn't in the UK, but from my understanding it is in fact illegal for companies to set an RRP on domestic electronical goods in the UK.

"Prohibition of recommended resale prices for specified goods
2. It shall be unlawful for a supplier, by publication or otherwise, to notify
to dealers prices recommended or suggested as appropriate to be charged
by those dealers for specified goods. "

Source: http://www.oft.gov.uk/share...

This is what a Sony representative had to say about not giving an RRP in the UK ONLY:

"Sony announced the price of both models for the Eurozone but not the UK. How does that work exactly? How do we settle on the prices we have here?
Fergal Gara: We find RRP means increasingly little in the UK. "

Source: http://www.eurogamer.net/ar...

Sony still very much do have a RRP in every other country:

http://us.playstation.com/p...

The official USA Sony site has "Price $299.00 MSRP"

http://www.jp.playstation.c...

The official Japan Sony site has "Suggested retail price 24,980 yen (tax included)"

Please do some research before suggesting such a blatantly incorrect "fact".

The thing is, even if there is an RRP for a product, which there is everywhere outside of the UK, that doesn't stop retailers selling things cheaper than the RRP.

GribbleGrunger1376d ago (Edited 1376d ago )

@WiiLovePS360

Noted and filed away for future use. You are right, I should have done a little more research because it does appear to be the UK only. My theory is in tatters lol.

+ Show (1) more replyLast reply 1376d ago
shenpo_shin1377d ago TrollingShow
GamerElite1377d ago OffTopicShow
Bumpmapping1377d ago (Edited 1377d ago )

Oh my god 20$-50$ price cuts what shall Sony do!