Analyst Jesse Divnich believes the PS3 has gained momentum on 360 and Microsoft needs to cut prices to counter the PS3 surge.
The Playstation 3 gaining ground on the Xbox 360 can only be a good thing. It's the sign of a healthy market and shows Microsoft that they need to work harder. When Xbox 360 had a greater gap between them and Playstation 3, the situation bore fruit for Playstation 3 users by making Sony work harder to maintain and gain ground. These situation usually spawn new exclusives and price drops. All this equals a win, win situation for gamers.
believe it or not folks 360 needs that price cut. It will be interesting to see the effect GTA4 will have on 360 hardware sales especially coupled with a price drop. I personally do not think any GTA fan will see the X360 console as the console to get for GTA4 despite any DLC unless there is a more significant price gap between ps3 and X360. That ps2 ps3 bond still exists and it will take more than DLC to break it This analyst said it best: "In the short-term, Microsoft's only feasible and economical option is to look at reducing its hardware price in North America to at least slow down the PS3's momentum until it can implement more long-term solutions to winning the next-generation console war."
GTA IV is likely to have a greater impact for the PS3 than the 360... but Microsoft may have purchased some exclusive advertising rights as well... we'll see. At any rate, what they really need is a price cut in the U.S. Otherwise their sales are likely to slump behind Sony throughout the rest of the year, considering that Sony's gaming lineup for 2008 looks much more appealing.
i would like analyst come up with something more constructive actually..price cut ain't everything, they don't seem to work exactly on what they are supposed to do...everytime when something happens they go >>price cut..=/ to me i think improvement of xbox live is more important that price cut, achievement or not i am not so into it though some claims like its huge...i personally think a overall improvement for live as in service quality, price and innovative material..are what xbox wants...yes i do have personal preference with PS3 but if xbox can't keep the only point that is slightly ahead of PS3... on the other side, MS should really stop saying BS like they have the best games or other excuses...face it, they need game, they need UP COMING games...i mean well they need to work on it instead of spreading FUD...yea the best way to sell game is to make the game trendy to own...but well if they don't even have a game to create that hype, no matter how much they spend on marketing, it DOESN'T ...change anything... In addition, pushing GTA IV as if its their exclusive is pathetic...yea they can aim on selling more copies on xbox 360 than PS3, but well they think this can help them regain momentum in 2008? its ridiculous...
price cut isn't a permanent solution its simply the most effective short term solution. PS3 sold more than last month and with increased momentum they will probably sell more this month. Msoft needs to slow down that momentum and the quickest and most effective way is to slash that price. People are seeing the great ps3 games on the horizon. They need to find a way to take the attention from ps3 onto themselves. Sony's job on the other hand is to keep the attention on themselves
Why would MS need to lower 360 prices if it's the superior system with the better library? Why are people buying PS3s now when it has "no games"? Oh wait, I know why: it's because they can't find a 360 anywhere. The supply constraints, right? /sarcasm.
"Microsoft needs to cut prices" didn't that just happen. lame
They didn't have another U.S. price cut yet
yes offcourse. However. MS really needs to fix their hardware issue more than anything else. Not half measures or band aid solution. I am being 100% honest here. I would have bought a x360 end of last year if it weren't for the hardware issue. The price drop will help but solving of this problem would actually get more people to buy the x360 in my opinion.
I doubt MS will fully fix the rrod problem on the basis that 360 has been out for a few years already. It's not likely they will rectify the problem when the console has already reached half of its life cycle.
hard to cut prices on 360,s when you have so many returns,sent back the nephews 3 weeks ago, told it may be a different unit returned thats worrying.its going to cost more than 1 billion dollars to keep these things working, last quarter alone in N.A cost MS 291 million dollars put asia and europe in the calculations that 1 billion will be long gone before the years out. ms is a big company but 1 billion to 2 billion a year in repairs out of any possible profit year in year out is plain stupid they may have extended there warranty but the more they sell the higher there cost of repairs and when you see there latest so called new designed 360 r.r.o.d at gdc08 on the first day covered by the bbc well it sure doesn,t look good they had to drop the price in the eu as the ps3 out sold the 360 3 to 1 in jan and it was 4 to 1 and cimbing in feb, retailers have started to refuse stock due to no demand no its worrying times for the 360, japan and asia don,t want to know its the wi and ps3,the eu have gone for the wi and ps3 and america are going the same way,shortages are only for wi and 80gb ps3 nephew will be selling his on return for a ps3
the more they reduce the price the less profit they'll make on hardware so they would have to rely on software even increasing royalties. Too bad there's a flaw to that plan. PS3 nor wii are standing still.
I expect Sony to go in for the kill this holiday season with a price cut, riding the momentum of superior games until then. MGS4 will annihilate any hopes 360 thinks it had when it's out, and even with the cuts in Europe, 360 continues to sell next to nothing while PS3 rockets past. It's over.
PS3 will gain momentum that will see it past wii when GT5P/GTA4 are launched this APril I firmly believe that console war will come to an end on June 12th , 2008
it is over and the Wii won. o_O Either way I will save your comment for future reference since June 12th isn't that far away. @6 - "and even with the cuts in Europe, 360 continues to sell next to nothing" The price-cuts haven't even been in effect 1 week and you've already reached that conclusion?? oookay..
Because, at least on his first line, I actually AGREE with IYM there. In short, because of the innovation and so many people buying that system (you should've seen ME trying to get that thing when I buying it), the Wii is right now a HUGE seller. That's because its attracting the casual gamers and, hey, it's Nintendo. EVERYONE relates to them as the father figures of the gaming industry. If they can get more high profile games, then Nintendo IS going to crush EVERYONE. However, seeing the momentum the PS3 is getting, they might be able to close the gap significantly. Don't know if they can ever catch up with the Wii, but it might become closer than people may be thinking.
Is slow on realizing things, but the word usually spreads. Once the media gets off of their hate train as they have slowly with the PS3, the reality sets in that the value within the PS3 is tremendous for the price you're paying. Even in the hostile market of last year the PS3 held it's own against it's most direct competitor (360), and has basically outperformed it in the same period of time of it's life cycle. What I haven't heard discussed by 360 fanatics is how do they explain the PS3 performing better than the 360 in it's first year even thought the 360 had no competition and the PS3 has 2 strong competitors? I think this is a sore subject to address and one that serves as anecdotal evidence that a large majority of the people purchasing the 360 might be old XBOX owners rather than new converts. I would also argue that until MS reaches the user base numbers of the first XBOX, there is still a lot to do for MS before they celebrate any victory. I don't think the ramifications of the hardware issues have even fully come to light, and that will be a whole other sh!t storm once someone within MS decides to release the actual data and memos that were passed around. Something this bad didn't just sneak up on a company like MS, this was a risk they knowingly took at the expense of the consumer. I am eager to see how this year plays out, as I think the PS3 has been sold short by the media since it's release. The Wii is in the equation, but I think that it is a beast that can be tackled at a later date as I can see it coexisting with a PS3 or 360 in any home nicely. This will be an interesting year for gaming, the PS3's march forward continues and at the end of the year the landscape will be different than what we see now. Can't wait for MGS4.....
"What I haven't heard discussed by 360 fanatics is how do they explain the PS3 performing better than the 360 in it's first year even thought the 360 had no competition and the PS3 has 2 strong competitors?" I will answer that it's brand recognition. You do know that MS is the "baby" in game consoles right? When you are leader of 2 gen's and have an install base like the PS2 with 120mil then I don't see why they wouldn't perform better. A question I have is why didn't the PS3 perform better? The very fact we are sitting here having a battle with 360 vs PS3 says a lot about the 360 brand and it has managed to do what Nintendo and Sega failed to do. Well, Nintendo has made up for it now but the Gamecube was buried by the PS2. It's not a sore spot it's the reality of the business and the whole reason MS launched a year early. They knew that if they went toe to toe with the PS3 and launching at the same time that Sony's Playstation brand would be difficult to overcome. Now MS just needs to not throw away that gained ground and make some moves to keep the 360 competitive. The EU price cut is a great start and I hope we start to see some people "Jump In" becaue of it. The machine really is aces despite the bashing it's getting on this site.
and add now hardware reliability. The fact is that MS has done nothing to gain any brand loyalty an right now is doing more to erode any good reputation it might have had than any one of console companies out now, and doesn't bode well for them. Dealing with a company like Sony, MS had to bring the action quickly. They basically had no other choice but to release early but their opportunity has past this gen. More often than not this year we will see the PS3 outperform the 360 and it will just get worst. As far as the machine being "aces" that is a matter of opinion. I guess one dimensionally meaning "games" it could have been said that it was good although as a matter of taste it really didn't offer anything for me. As an overall package I believe the 360 is underwhelming when you look at the overall entertainment choices you get out of the box, the features and the quality I don't believe that MS holds a candle to what Sony has to offer and the consumers and media will begin to see that. How a company moves from having the most advanced system with HD and decent reliability to one that has no standard HD, and the most worst reliability in current gaming history is beyond me. MS took 1 step forward and like 5 back. They haven't paid their dues to the gaming community and I think people are going to begin to realize that. I look at the total package, I consider entertainment games, movies and music. I have friends that come over and chill at my place so for at the price it was, the 360 wasn't offering sufficient entertainment and value in one package. For a bit more than a 360 I got a HD player, a media hub and a gaming system that is ready for the future expansion of gaming. MS dropped the ball IMO, and really I think they are destined to come in third this gen. Poor decisions were made and Sony is now that much more informed about how to proceed in the future. MS had a golden opportunity and squandered it, they might never get one again against Sony.
Then the price cut is NOT the answer. Think about it fellas, if price was the real issue here, then MS would have never been in danger of losing their lead in the first place. The ps3 has always been more expensive. So no, price isn't the factor. It will help SOME, but that won't stop ps3 Momentum much. They NEED to do something about their hardware issues. There is an old saying: "You can't put a price on quality" After a while, despite the price, people won't by crap forever. And since the quality of MS hardware is crap on an amazing level, that might ultimately be their downfall
are these predictive articles news so sick of them i own a ps3 and want it to be all it can be, but far out, every day on this site its a different author crappin on about what they think will happen in the near future. and more than half the time it is just flame bait
It is really simple, and i assume some people feels the same. Microsoft might have a price cut for the 360, if it happens it is suppose to happen near GTA4 arrival. PS3 is all out on June 12. I expect In-game XMB, Home, Re-design Store and the PS3 must have game, Metal Gear Solid 4. If Sony drops the price there, i can see huge opportunities.
what's going on here??? An actual discussion on an article instead of the usual fanboy attacks on each other? I'm sure someone will ruin it for us. Like many people said before, there will be no winner for this current generation of consoles. However, if you're hard pressed to pin-point a winner, I'd have to give it to Nintendo. If you look at the sheer numbers of the units they've sold compared to Sony and MS..... my god, you just can't compare them. Even though I really think Nintendo is like the little brother/sister that Sony and MS picks on, Nintendo pulled a quick one over these 2 giants. But the truth is that Nintendo and Sony/MS can co-exist because of the relatively cheap price that the Wii is being sold at when compared to the PS3 and 360. It'll be interesting to see when both 360 & PS3's prices drop their prices to the point that it's competitive to the Wii. That's when the real battle begins. Personally, I love it. Hopefully this battle will bring out better and cheaper games for all of us console owners.
you just had to jinx that fan attack stuff didn't you lol
now this is the best peice of info I heard on here ever!!!!! the real battle wont start til 360 and ps3 be competitive with the wii with price range then let the war begins. see who is the winner then. muhaaaaaaa-muhaaaaaaaaaa
This holiday season Xbox 180 doesnt stand a chance. PS3 is literally gonna PWN it. Not own. PWN it.
How about we drive the final stake in the throat, and cut the price in the ps3? = Dead 360
A price cut wont help. Its already the cheaper console so whats the point being cheaper'er? PS3 has the momentum and that momentum is feeding next months momentum. Theres no stopping it now. Thats why they call it snowballing. Plus its the games just around the corner and they're all on PS3. The only Xbox game thats close I care about is GTA4 and guess which console I'm getting that on. Thats right. The one EB games didn't just revoke my extended warranty on because M$ wont take back their broken stock. We all heard about that a couple months ago, well I can say for a fact now its true. They ended up cutting some sort of a deal but EB wont give the warranties on XB anymore and are actually refunding them. Sucks for them. If this goes on like this for 6 months and it becomes apparent M$ is going to lose again expect M$ to stonewall all their customers again by releasing a new machine, dropping support for the old one, and all the while telling your its all about choice.
"Its already the cheaper console so whats the point being cheaper'er?" It's all about reaching that critical price point where people will buy it on an impulse. The 360 is trying to reach beyond it's Xbox original roots and I think price point can be an obstacle. Look at the PS2 outselling the 360 and PS3, it's price and software libary are superb. I think MS is trying to reach that same point. The problem is, once they drop the price and if people don't respond it puts them in a tough position as to what next to do. Maybe advertise harder? "If this goes on like this for 6 months and it becomes apparent M$ is going to lose again expect M$ to stonewall all their customers again by releasing a new machine, dropping support for the old one, and all the while telling your its all about choice." This is kind of an unfair statement. The reason the original Xbox was dropped was because of the licensing fees and patent problems they were having with NVIDIA. They learned their lesson and own all the components in the 360 now. And MS did not drop support for the old one beyond not making games. You still have backwards compatibility on over 400 Xbox titles and they have been putting out the most requested xbox1 games in their back compat updates until the end of 07. I think the 360 will last longer than the original did and I also would like to think that MS has a plan to make 360 games compatible with the next Xbox since it's been so important this gen. EDIT: Also, sorry to hear about your 360 problems that is MS's biggest black-eye this gen and completely unexcusable.
The real rpoblem for M$ this year isn't really the price cuz it has always been cheaper than the PS3... it's the software yes they have a few exclusives but thats catering to the already existing user base so those wont bring in much new customers.. and the biggest game on there line-up isn't even exclusive so it's not like Halo 3 here where you have to buy a 360 to play GTA4..it's available on the PS3 also.. GeOW2 is the only real Mega-Blockbuster game on the 360 line-up this year and that way down in Novemeber while the PS3 will have MGS4/GT5p for the spring and summer... Not to mention the whole RROD which is also turning out to be the 360's worst enemy..if M$ can't fix this prob then they're gonna make it hard for the Xbox 720 next gen...
Dude, you're becoming quite reasonable to talk too and I should give credit where credit is due and say "I like that." I've seen you behave like quite the fanboy before but if you're changing yourself for the better then I'm big enough to say good for you and I applaud you. I 've noticed a couple of your other post and people giving props too. (Are you sure you big brother hasn't been on your PC?) Just kiddin'. ;) Like Danja said M$ need more diverse games I know they are no all just shooters, but Sony seem to have every base covered and most of their franchises like FF, MGS and GT are the best in their field. I dont know what you can do against that. And like it or not I do still feel stung by M$ for last gen. I supported them. I got nearly every multiplat on XB but when it the music stopped I was left standing with no chair. And these are just my problems with M$ and the way they treat people, the hardware its self is a whole other story. I was gutted when I found out they released a machine with no HDD. That was the most brilliant thing about XB1. No I didn't have to buy it, but I realized right away it means they forever have to cater to the weak link and theres no getting around that. Rule number one with consoles, add ons only split your own market in two. Even if they're popular its still harming you. The same thing with DVD, which you might not think is that big a deal but i can guarantee you if both machines had BR or HDDVD, devs would have made better use of them by now just because they wouldn't have a smaller version holding them back. It human nature to push it to the edge, but we've built cars that do mach 1 this generation and set them down on a road with a 100 mile an hour speed limit. Anyway, I'm finished work. Have to go home and play Army of Two. (About time EA made a good game.) I've just about fully pimped out my styer Aug. Sweet gun.
BTW, if M$ weren't such tight arses they should have cut the price the week before PS3 launched. With all the bad press Sony was having that reall would have giving them a run for their money. All I can say is thank God they're greedy, the PS3 might be smashed by now.
I dont think so the PS3 will have still sold the way it did back then..cuz alot of die hard PS fans like myself would have still went out and buy it bcuz my fav games weren't coming to the 360..and I wanted to Play RFOM...lol Funny thing Sony can easily drop the price of the PS3 right now to equal that of the cheapest 360 SKU...if they wanted to ....now that would deal a heavy blow to the 360
Danja, no, Phony cannot just drop the price of the POS3. They've lost way too much already. Besides, I think Phony has done the price drop like 8 times already since launch. Their asses just can't taking a hit because after awhile, it has to hurt. In all seriousness and I am trying to have a real conversation now, Danja, here's the amazing part- look at the NPD numbers. 6 of the top 11 titles are 360 titles so that doesn't fly. Several of the titles like COD 4, Devil May Cry and Turok are crossplatform and the 360 title sales are doing circles around the POS3. What this tells me is that the POS3 may have sold a paltry 25, 30+ thousand more consoles, but only for HD movies. That's a very key point. MS sold $184 million worth of games in February. The PS3 sold $97 million. There's a big truth in these 2 numbers. I think when you take away the 360 vs. PS3 adolescent arguments for a second, objectively everyone in here knows that next month will be a lot different. A LOT different. GTA 4 on the 360 will be huge. Much bigger than the PS3 launch, not only because of the exclusive content, but because 360 owners buy and play more games. Now back to the mud slining!
Another idea for the 360 is dump the three year extended warranty and make it five years. What's with three years? Nobody buys a console for just three years. My Sony consoles have all lasted over five years. My PS2 is over five now and still working. The 360 needs to be guaranteed to last at least five years. I'm sure it could cost Microsoft a few billion more but it might be their only chance.
See, this could be much easier IF they worked on their hardware issues. While Sony was working out ways to make their system less costly to produce (smaller chips, extracting parts, focusing disc lasers), MS should have been REALLY attempting to correct the hardware problems, not just "patching them up". A price cut wouldn't help them. And that is if they can even afford one to begin with at this point. Considering how many returns they get on their system, a price cut might not be that easy to accomplish because they're already losing money on replacing and refurbishing systems. And if by chance they DO cut the price, Sony will and can afford to do the same immediately because as I just said, Sony has been working on ways of making their system less costly to make. So overall, the hardware issues that they neglected haunt them in the end.
Its hilarious how people jump to conclusions from sales figures. The only reasons more people are buying PS3 are because of the price cut and the blu-ray victory. Nothing else has changed about the PS3, certainly not in terms of games. When 360 does their price cut, you'll also see a sales surge.
are you sure those are the only reasons why people are buying ps3s? i bought the ps3 because of proven franchise hits like tekken, gt, mgs, gta, socom, and final fantasy. the 2008 lineup also looks awesome with new ips like littlebigplanet and infamous.
You'll not just see a surge, but you'll feel it. And when the price drop in the US hits just before GTA 4 the Phonyboys will be crying out, "2009 is the year of the POS3!"
It will still take several years for PS3 to get past 360 in installed base. WW it may happen in couple of years but definitely not in NA. With just 50k difference in monthly sales in NA, it would still take 12 years for PS3 to have larger install base there.
With the install bases of North America, you can plainly see that it is in fact, home to more idiots then anywhere on earth. Were else could you sell a product with a higher defect rate then firestone tires with out having a recall. But Europe isn't to far off in the low IQ section, as Japan has shown to be the only ones to have some sense, which makes none, looking back at there wacky pasts.
sorry but thets prety offensive dude. I bought the 360 and im no idiot. I wanted to play great games and thats what I got. Maybe the hardware sucks, I dont care. The quality of the games is well worth it.
PS3 install base will pass Xbox 360s in a year or so. Remember, Xbox 360 is nearly dead in Europe. Don't believe Vcharts monkey. He inflate European 360 weekly numbers by around 80 thousand units. Xbox 360 probably sells a max of 30 thousand unit a week in Europe. Thats why MS needed the price cut over there.
it's pants pooping time for the green xbaboons and their red ringed ass. Peter moore, come back, the fellowship is in total disarray! soon they'll be asking for mercy but it'll be too late. payback time's just started... mmmm... delicious... let's taste every bit of it... don't finish it too quick... let's take our time to enjoy the biggest most humiliating pwnage in gaming history!
Umm...I have no idea what the hell you just said.
I wouldn't call 60-70,000 units in 2 months, "significantly gaining ground." It's the calm before the storm and all you Phonygirls in here all the fanatical POS3 bloggers who write this crap know that 2008 starts when GTA 4 releases. Break out the tissue now cuz you are in for some gloomy days.
can you explain to me how this multi plat is going to bring some gloomy days to the ps3. why because 6 mon to a year later you guys can spend 30 bucks for more missions. don't get me wrong the missions sound cool. and i would like them on my ps version. but i doubt that it's going to take anything away from the ps version of the game. and to say that the release of this game is going to bring gloomy days to the ps and it's owners is pretty ignorant. it's a multi plat that started on the playstation. if a game is going to bring gloomy days to a console and it's users, that game's name is metal gear, or resistance2, or littlebigplanet. those games are gloom bringers to the competition. man people are stupid sometimes. if people don't think that there is a ton of ps2 owners just waiting for this game to come out before they upgrade to the ps3. than people are crazy. ps users are very loyal. and just because they all haven't converted yet certainly doesn't mean they wont. it just means they haven't YET. and when beloved ps2 games like metal gear, and gran turismo, and grand theft auto come out. you can expect a ton of those ps2 waiters to finnaly have the excuse to convert to the next gen. and i'm sure that next gen well be the ps3 and not the 360. but what ever. long live solid snake.
Is a stronger lineup of games this year and a better handling of its hardware issues. They really only have three big things coming out this year that people will really want to go for (GoW2, Fable 2, and the guaranteed GTA DLC, and the last one may even be in doubt that people may want it given that there are other issues and there's no guarantee the PS3 won't get something similar since Rockstar never said they won't). The PS3, on the other hand, already has some good games (MLB08 is awesome, and they also have Heavenly Sword, Motorstorm was decent, Folklore looks good). And then you count the exclusive games, one of which includes MGS4, and the slew of games which you might now be able to assume will be made with the PS3 hardware in mind (CoD5). The 360 needs to have a stronger lineup of upcoming games than what they have right now.
You forgot major AAA titles like Ninja Gaiden 2 and Splinter Cell Conviction. Clearly you don't know much like most sony fanboys here.
Even your fellow xbox fans see the price cut isn't the answer. He darkpower never said the 360 didn't have strong games coming. He said they need STRONGER games. And he's right. The upcoming 360 line up doesn't match the upcoming ps3 line up. Heck even Hot shots golf is turning out to be "AAA" (since you guys love to bat those 3 letters around here). Everyone was having a nice conversation until you started getting defensive and talking nonsense. You aren't new here. So you DO know where the open zone is. Don't you?
did anyone read the 2 comments from the source? I'd like to know where that guy was taught math
Well just like the ps3 desperatly needed a price cut last year to gain interest...the 360 now needs it. The cycle continues... The price cut will definitely make a serious impact on total worldwide sales just like the ps3's did. But if the ps3 counters with another price cut than the 360 will be in trouble. The ps3 will be the cheapest bluray player on the market by alot. My uncle just bought a ps3 just for the bluray player. This is just going to grow if the ps3 goes for another cut.
This has nothing to do with a price cut. the 360 has always cost less to purchase than the ps3. So don't kid yourself into thing a price cut will have a major effect since it always cost less in the first place. What MS "DESPERATELY" is to REALLY do something about their hardware issues rather than these little "temporary" solutions like extended warranties.
Why do you go to these fanboys for analysis, people. Pricecut? I could have told you that! And this fker still thinks MS actually had hardware shortages. Lmao @ idiot xbot. NPD data people! It said the 360s EXPECTED sales were 249K. Xbox sold 254K. Do you see any hardware shortage problem!? I fking dont. Stick to Michael Pachter. At least he isnt a delusional xbot. The writings had been on the wall since summer 2007. EVERYTHING WE SAID WOULD HAPPEN, HAS HAPPENED SO FAR. There is only one outcome. 360s grave has already been dug. Its only a matter of time now.
why do you guys think that when MGS4 comes out it will be OVER for the 360!! it wasn't OVER for the PS3 when halo 3 was released. an to be honest I think halo has a BIGGER fallowing than MGS. PS3 sales might pick up, but not to the point as many of you think.
Its selling well? So it doesn't need a price cut really??? Not yet anyway. Maybe xMas2008+include the DS3 pad with console to;)
This all is looking good for us gamers that want to see a developing future in our favorite industry. The games industry is doing very well despite recession in the US.Looks like our gaming habits will be fed for a long time to come!
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