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.
it seems like every EGM rumor has been posted
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..
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.
hey kimbo shouldn't u be over at bangbus?
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.
@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!
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.
i hear gannon the cannon is looking for you
@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...
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.
"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
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.
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.
Ive never seen anyone suggest before that the 360 is the console with no games before ROFLMAO!
The PS3 went form $599.99 to $299.99 in a year & a half!
So now what?
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?
http://www.usatoday.com/mon... "The charge will be $1.05 billion to $1.15 billion......"
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.
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.
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.
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.
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.
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:)
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:
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.
hopefully sony will do the same
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.
Sony really needs a price cut... Sony is sinking... The XBox is cheaper and BETTER BY FAR in many ways...
What's wrong with you?you are a 360fan and have a avatar of snake standing on x360 from SDF.com!lol
Well, you got the "cheapest" part right.
or at least drop the prices of the games to 49.99, i wish
Software is where these guys make their money. Their willing to loose money on hardware just so they can push the expensive software.
Well it is about time....I have a couple of freinds who waiting on the price drop.
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)
Arent hefty price cuts what they did to HD-DVD players before they went extinct
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!
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
@ 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.
No, it's called being competitive. Did you say those same things when $ony dropped the price of the POS3 in the first year?
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.
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 $200 dollar difference which game Microsoft a lot of room to breathe. Get your facts straight next time, idiots.
Difference is 360 will not go extinct but all they are doing is attempting to adapt to market conditions.
i am sure you mean that the 80 gig MGS bundle is 499 since returning, it maintained that pricepoint not increased it. (usd)
were you not one of those who kept bring up the idea that Sony did not do a real price drop.... LOL
Time to Flush out the crap in time for Xbox 3 in 09!!! lolM$supporters
It's overdue but better late than never.
Price cut = Gamers win!!!
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..
all i gotta say is we have the same icon, and by default you are awesome.
pricecut=little kids that cant afford anything win = we lose cause we have put up with them on live.
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
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.
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.
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.
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!
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.
Pro for 250-270
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
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.
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.
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...
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.
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.
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
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
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.
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.
TheMART at Xboxkings
PS3 version looks more realistic, less pop ups, shorter loading times, and better AA.
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).
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.
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 [email protected] 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.