With a $50 price cut on Microsoft's Xbox 360 seeming more and more likely, Janco Partners analyst Mike Hickey believes that now is an opportune time for Microsoft to take advantage and put pressure on Sony's PS3 business...
What weapon? I don't see a price cut as a weaoin unless the price is reduced to $199. Both machines offer totally different media experiences (including games) that differ them greatly.
People have been making the same idiotic claims since the first Xbox was announced years ago. Microsoft was just going to buy out the entire console market 'LOL! with Bill's pocket change!!!' were the claims. The very latest Microsoft conference call it was admitted that they are still losing money on the 360 hardware and they had no ETA on when they would - only that they were 'making progress'. The only thing keeping the Xbox alive and not killed off by management are the absurd 50 dollar a year online fees Microsoft forces Xbox owners to pay to be allowed to play laggy P2P games online. Sony has confirmed they have reached the break even point on the console manufacturing costs after the dramatic cost reductions in BluRay drives. No one can compete with Sony on console manufacturing design and cost reduction. Even if Microsoft could afford to pile on even more losses for bigger price cuts it wouldn't make a bit of difference. Who the hell would be dumb enough to buy the worst console in the history of gaming just to save 50-100 bucks? 130 million people bought PS2s for: Metal Gear Solid Final Fantasy God of War Ratchet and Clank Team ICO Gran Turismo Jak and Daxster Killzone Singstar SOCOM just to name a few of the major Playstation exclusives. And somehow a price cut is going to cause those 130 million gamers to give up the most powerful console, BluRay movies, incredible reliability, silent console operation, free online gaming for all, dedicated servers, Home, PS1 and PS2 backwards compatibility for...a somewhat cheaper Xbox 360 that: is the worst hardware ever made noisiest console ever disc scratching and destroying crappy graphics 50 dollar a year online charges laggy P2P networking and Halo LOL! Dream on.
Here is my opinion without bias: the 360 price cut will only be successful if sony does'nt do the same, If sony decides to do the same then the ps3 will continue to outsell the 360 and the reason why is because online for sony is free and MS is still charging $50 for live. If MS makes xbox live free along with this price cut then I honestly think that the ps3 would be in trouble.
Microsoft dropped the price of the 360 everywhere in the world except the US and it made no difference. Sony will simply wait and see how much it impacts them in the long term. It is natural that Sony would be outsold the first month of the price drop, but if sales on 360 go back to normal, then Sony can live without dropping the price. If not then they will have to respond. They probably have SKU reshuffling, value increasing with more HDD space and or USB slots and bundling with games, anything before a price drop. If all else fails a price drop is almost guaranteed.
Hell if the price gets low enough maybe i'll get another one. I had previous 360's bust so I gave up, but if it gets cheap enough I might reconsider. However the only thing stopping me is the lack of games that appeal to me this year. Strange how things got swapped. Last year I was looking forward to more 360 games and this year the ps3 is surprising/impressing me with each new announcement. For example I'm loving 2.4 so far and have 13 trophies in super stardust hd, but it would be great if more games had it like how the 360 has achievements for all of their games. That's definitely one thing I miss, but I have to admit I think (if SSHD is any indication) Sony does the trophy/achievement thing better with the leveling system and bronze, silver, gold, and platinum thing. But yea. If Microsoft wants to drop the price on the 360 then I say go for it. It can only mean good things for us consumers. Maybe sony will respond with yet another price drop or a new bundle for future users.
It's quality not... umm... a toaster my friend.
Oh my god...Gears 2, Halo 4...I don't think they need anymore weapons for the rest of 2008 to be an all-out slaughter of the competition
Halo 3 barely came out and there is only so many people that want to play another shooter on Xbox 360. There aren't many games, if any, that revolutionized other genres either.
well I expect alot of current ps3 only owners jumping ship to the xbox 360 in order to enjoy the myriad of rpgs on the xbox. Sony is the one that has no variety they rely too heavily on shooters. Res2, killzone 2
Microsoft just killed Sony. Gears 2, Halo 4, Price cut, Fable and 3 top secret games at e-3 being unvield by major 3rd party. Game over, Sony. While you are 2 years behind on system upates and features and while you're letting Qore rape your consumers for downloads and money, Microsoft stole all the cookies from the jar and the broke it.
Halo 4 ... first of all its rumored... even if they do announce that game, it still wont be enough , sure it boosted some consoles in 2007 but in the end ... who won WORLDWIDE.. .. that was ps3 with very little titles out. this and next year u have heavy hitter such as R2 LBP and of course !MGS4! and stepping early into 09 we will see games like god of war Etc, get out of here with your Absurd comments as for E3 u act like sony doesnt have things up its sleve as well, heres a bit of advice .. wait for E3 then talk garbage gear 2 .. good game no arguments u talk about how sony is 2 years behind on updates , but yet that disc reader known as dvd is what 8 - 10 + years behind on techonology itself, go back to your room and go sit in a corner kid
Don't forget: Too Human Alone in the Dark oh wait.....
WRONG. The winner of this generation is far from decided. Anyone willing to claim victory at this point is a delusional fanboy. You are correct when you say MS has amazing games coming (like the next Halo and Gears) but don't forget SONY. God of War 3, FFXIII, LBP and many others.
lol...Sony dead? hardly. With 2.40 and the new exclusives due, I see a massive number of consoles being sold soon. As far as Halo 4? Yes, sure, rumor anyone? It could be stated as being fact but at this point I'm pretty sure everyone has played Halo and if they're planning on buying a 360 to play it, they've already done so with Halo 3. Halo 4 is much like a Geow2, a good game, good sales, but not a console pusher. As far as Too Human, you can't be serious. Of anyone who's even seen the game play videos it's completely obvious that the game is years behind the Wii in graphics and animation. Gameplay? Possibility, but in this game I can definitely see the graphics and animations being a huge factor in gameplay as far as glitches go. 3 secret releases? Yeah ok, we've heard nothing from Sony about any games really up to date, whose to say they don't have anything? Watch your TV for 2 hours, how many 360 ads to do you see? How many PS3 ads do you see? Sony doesn't jump to advertise everything they have and are going to have, so what makes you think they're going to tell everyone what's in store for E3? Get over yourself. As far as games coming out for the 360 the only two titles that spark interest in me: Fable 2 & Geow2. And Geow2 is only going to be another multiplayer game as was the first one, as are all the Halo's and as are pretty much any FPS games to date. Let us not forget the mandatory installs that were once laughable by 360 owners and haunted by PS3 owners. It has come to my attention that Alone in the Dark now requires an HDD. Karma anyone? This follows the lack of good games coming out for the 360 (NG2 etc. etc.) These hyped games are now being seen in their true forms: A pile of dog turds in a brown bag on your porch (or shall I say in your 360 causing over-heating). It's only a matter of time before you're sitting in your corner crying over your RROD'd xbox 360 and the lack of "next-gen" games coming out. I foresee you begging your parents to buy you a PS3 for Christmas with all the new releases PS3 is getting this holiday season. Yours truly, Xhairs9 ...not.
...$50.00? Are you kidding me?
your right people still have 2 pay $50 for xbl=xboxlag
I know. 1 dollar a week for 13 months wow that's insane dude.
"I know. 1 dollar a week for 13 months wow that's insane dude." Yep, and for just 2 dollars a week for 13 months gamers can get a PS3 with: All the games they want from the PS2 and PS1 Rock solid reliability / no RRoD 1080p BluRay movies Silent console operation The best graphics by a huge margin The best online service with lagfree dedicated servers The largest and most diverse first part exclusive developer lineup of 20 or so dev houses vs on 3-4 for Microsoft What an amazing bargain the PS3 is!
if you was a gamer you would know the graphics are the exact same. The best graphics by a huge margin ... LOL oh and i have both ps3 and xbox360. so i'm sorry if that you failed to insult me
BLUR...if graphics are exactly the same, then why do 360 fanboys love to use comparison videos to see just how well multi-platform games look on the 360?
IDK, well you would have to ask them that.
360 has better graphics. Fact.
Ya they could use it as a weapon.. To shoot themselves in the head and finally end the 360s pathetic lil life.. :)
that a price cut will increase 360 sales. It would for any console. Microsoft seems to have some big secret titles for E3. Halo 4 is supposed to be announced not to mention the Peter Jackson game. Alan Wake is going to be there, Halo Wars...and possibly Killer Instinct 3. And with all the great RPGs coming out this year(Infintite Undiscovery, Fable 2, Tales of Vesperia), not to mention Gears 2. This years lineup is looking pretty good IMO. Add to that a price drop on top of it and it will probably be another positive Holiday season for Micro this year. That is the thing I like about Microsoft. They show the games that are going to be released in the near future. No waiting for a long period of time.
I can only say great about "Fable 2" and it is Western. The other two are as niche as they get except in Japan, but in Japan you know how Xbox 360 is doing. If Microsoft does not have Final Fantasy, Dragon Quest or Kingdom Hearts, they will never make themselves a market in Japan. Besides, what is it that you like about Microsoft? That they reveal titles early? So now you want Halo 4 to come out soon? Killer Instinct 3 and Gears 2 might be great games, but it is doubtful that all these hardcore games and price drops will do anything for 360. Most of these games are not new genres or experiences, they are simply beefed up games of existing genres, and with the negative brand equity Microsoft has made of themselves with the death ring fiasco, I doubt they will ever penetrate into something called critical mass.
the Genesis was pretty successful and it sold what, around 40 million consoles over it's life time. The 360 even at 299, is still very expensive when you think about it over previous generations. They aren't even at mass market prices and they seem to have done okay. They certainly could have done better, but 360 owners seem to like games and buy a good number of them. No one knows how Infinite Undiscovery and Tales of Vesperia will turn out, but they have been promising so far. They both may even turn out to be great, but we won't know for now.
Last fall, $50 was supposed to do something. Worldwide PS3 outsold 360 since early October. Like 20 days after Halo 3, PS3 was outselling 360 worldwide every week worldwide until now. They have always had price advantage. Every country worldwide. No more weapons. :)
i believe 50$ isnt going to boost sales the way they want it to. its had numerous price drops in certain country's (its cheaper than the Wii in some countrys!)and it didn't really make that much of a difference. i think that the 360's near it total fanbase considering the 25 mil it had last gen and it just so happens that its sales are dropping as it nears the 25 mil mark this gen. i dont really see anymore system sellers in the future either. gears2 halo4 fable2 aren't really system sellers. 50$ will move some consoles but who wants something thats notorious for breaking? their better off dropping the price when they ship the new jasper model out. for real. it seems like MS dosnt really have that good of a game plan...
You can only sell so many units of a product at a certain price point. The 360 is hitting this limit. Sony had hit that same limit at $600 last summer and lowered the price and they got increased sales. Now MS has to lower the price to get closer to the casual market. And please remember last generation 90% of consoles sold after they dropped to sub $200.
But look at the total sales numbers of the consoles. PS2- over 100mil, GC- 23mil, Xbox- 24mil. There's more to those sales numbers than price and price alone. I heard the price elasticity argument in HD DVD vs. Blu ray debates and we know how that turned out.
Microsoft has used price as a weapon all along... and it hasn't really done much for them, as we all saw that May's NPD numbers for the 360 were literally the same as April's NPD numbers, while the PS3's NPD numbers in May actually increased from April's sales in the U.S. while selling at a higher price point. Microsoft dropped the price of the 360 in various places in Europe, but the PS3 still outsells it in Europe. The 360 is cheaper than the Wii in Europe but the Wii still outsells the 360 in Europe. Right now Sony doesn't need to drop the price on the PS3 in the United States yet because it's been selling at a pretty consistent rate and MGS4 will have made a pretty nice increase in PS3 sales as well for the month of June alone and if Sony keeps on selling the 80GB PS3 MGS4 bundle for a little bit longer, PS3 sales should hold up pretty nicely against the 360 at a higher price point. Personally I think that once the PS3's price gets down to $299, it's a wrap for the Xbox 360. Sony said that they expected the prices of Blu-ray drives and Blu-ray players to be a couple of hundred dollars cheaper than they are now by Christmas and they will be cheaper to manufacture, and if that's the case, that means that Sony could drop the PS3's price pretty easily while not risking more losses. The funny thing is Microsoft has used price all along to combat against the PS3, but it's gotten them almost nowhere in the past several months when the PS3 started to outsell the 360 in the U.S.
it still wouldn't matter what price it is. Microsoft could give people money to buy the 360, and still, NO ONE will buy it.
Yeah, Sh!t doesnt sell...
Did you notice that there are less and less xbox people and more are changing to become PS3 users??? Weird aint it... and the PS3 is dying?
when M$ and Sony are fighting for sales and people are hoping for price cut when we knew that they're already selling at a loss, yet the Wii is selling with profit for every single one sold! I know, the Wii is not in the direct competition bla bla bla but still, what it is doing is simply crazy! back to the topic, 360 is heavily being outsold by PS3 and Wii worldwide even with its lower price tag compared to the PS3 and even the Wii in Europe. So, price cut is inevitable for 360 for it to compete! ok, I'll consider it as a weapon, but I don't think it's a lethal one! Sony did it last year and sales spiked, so who knows it will be the same for 360.
Halo 3 smashed records chump. Halo 3 rolled in more money then metal gearsolid 4.
I think the price drop is long over due. IMO, there is simply more value out of the box with the PS3 than the 360. Couple that with what the added value is (blu-ray, wifi, free online) and in most people's minds, it may be worth $100. I think we'll see pretty much the same sales pace. Initially there will be a spike, but overall, the system will sell at or slightly above its current sales. While its software lineup for 08 is ok, it's not necessarily the type of lineup that will grab new buyers. Existing users are going to jump all over them no doubt, but their reach isn't as wide or as deep as Sony or Nintendo's. I'm not saying Sony's isn't in the same boat, but they seem to have a lineup that truly differentiates themselves from the competition.
...not a deadly one. Sony is doing well enough now to NOT have to respond to any 360 price cuts. Sony has the advantage of giving you more for your money, and that kind of eats into the gains of a price cut. Also, echoing the comments of my esteemed N4G colleague 'Action Bastard,' (bubble for you) the 360 price cut is way overdue. Still, it will move more units for MS, and isn't that the point? Hopefully this move will clear the way for Jasper and Valhalla, the end of Arcade/HDD solution, etc. Maybe then MS can focus on the DVD9 problem....
I mean, PS3 outsells the 360 by 25000 consoles a week!! Only 200 weeks to go now.
right-on man. So poignant. I have been pointing that out for months and months and months. But sometimes ps3 fans just like to ignore reality. oh, gawd. who am i kidding.... they do that ALL the time. 200 weeks is how many years kiddies?
If a person has their mind set on buying a certain product then they will buy it no matter how cheap a different product maybe .
no game that they have coming out in the immediate future will boost sales and they need to stop the ps3 gaining momentum in the console war. They'll lose June NPD but a price cut and a win in July would stop sony in their tracks and gaining the sort of momentum that has allowed the wii to obliterate the opposition.
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