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Will Sony respond to the permanent Xbox One price cut?

Thanks to an extended price cut, the Xbox One is gaining in on the PS4. Is it time for Sony to respond with their own price cut?

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ps4daily.com
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Mechanism1047d ago (Edited 1047d ago )

No. XBone did some good work in the US and UK over Christmas, but the PS4 has still been outselling the XBone globally.. Sony has the first half of the year wrapped up nicely with exclusives, and I even think NPD's will return back in Sony's favour.

An announcement at the next Playstation Experience is more likely, or even possibly E3.

The price drop isn't even permanent (marvellous journalism!), but I think it will become permanent once Sony put that nail in the coffin with a price drop.

insomnium21047d ago (Edited 1047d ago )

Why would they? PS4 would be out of stock all the time if the price would be lower.

Another thing is the games. They are now finally starting to push some high profile games out in droves. How about seeing how the sales act when that happens before dropping the price?

If xbone starts to win or even out the sales globally AND if the new games don't do a damn thing to counter that then maybe it's time to drop the price. That's a whole lot of ifs in there. It would need a miracle for that to happen though. Many miracles in a row.

Death1047d ago (Edited 1047d ago )

I don't think the fear of being sold out is the issue. What is the point of selling at a loss or cutting into profits at this time if you are Sony? The bottom line is Sony really needs to make a profit with the Playstation. The companies health is the worst it has been in a very long time. The PS4 is helping change that and needs to continue contributing to the companies bottom line.

Look at Microsofts last quarterly results and you can see how the $50 price drop affected the division. Microsoft still had close to half a billion in profit, but that profit came at a cost of $1.5 billion more in revenue over the quarter before it. For Microsoft it's not an issue, but for Sony that would be very difficult to do and to this point they don't need to.

XBLSkull1047d ago

Nope, they cannot afford to. Sony didn't make a penny last year, but they did manage to lose a figure in the billions.

IGiveHugs2NakedWomen1047d ago

@"Will Sony respond to the permanent Xbox One price cut?"

They already did...

$399 PS4 with The Last Of Us Remastered

$399 PS4 choose a game: Destiny, Far Cry 4, Little Big Planet 3, or NBA 2k15.

No price drop required.

OB1Biker1047d ago

Another misinformation article ... Anyway I think when the PS4 is really cheaper to make (which is more and more likely) there's no reason why they wouldn't cut the price. Sounds fair enough to me.

ABizzel11047d ago

No they have no need to. The PS4 still sold well in the US and UK despite the XBO price drop. Now sales are neck and neck after the holiday rush has ended (like I said it would), but Sony has some big exclusive for the next few months, so they're going to keep their $400 price and maximize profit.

They'll have a price cut this holiday when it's needed to keep momentum strong, but that's not happening until September at the earliest.

Army_of_Darkness1047d ago

PS4: Hey xbone! what's the hold up?? you like titan fall 9 miles behind me bro!!

Xbone: dude, I gained a little weight this Gen and feel pretty bulky right now, plus my vision is blurry sometimes and can't see any further than 900p... I'm feeling Forced'ta Kinect with a bike or something to at least catch up a bit...

ps4: sure, go ahead... use a bike if you really need too. LOL! I'll allow it for now ;-)

and so the race continues..

donthate1047d ago

I see people keep throwing the worldwide number and how Sony is still in the lead, but what they fail to see is business isn't just about outselling the competition, but how it fares over time. Ideally you would increase sales every month, quarter or year taking market share from competition.

MS is doing just that, they are taking marketshare and significantly increasing sales period-over-period.

Sony will look at the US and UK market and have to respond if MS continues to put pressure i.e. that their sales continue to hold well. Lowering their prices in those region won't hurt them in other regions.

However, Sony cannot afford it as their mobile division did worse than expected and was a huge bet. Sony keep selling or divesting off their divisions, and the only one really making money is their gaming division. Loosing much needed profit to pad Sony's losses isn't an option so Sony might just let MS continue to take marketshare.

+ Show (4) more repliesLast reply 1047d ago
SoapShoes1047d ago

It's not even selling more at a cheaper price now according to major online retailers. I think they'll drop it for holiday 2015, seems likely but not before that.

Death1047d ago

<sigh>

Why do people still use Amazon.com to gauge console sales? Weren't people saying PS4 would top Xbox One in December based on Amazon ranking? I honestly have no clue who will come out on top in January. If I were to guess I would say PS4 since Microsoft did the temporary price hike at the beginning of the month. I wouldn't use retailer ranking to make the call though.

SoapShoes1047d ago

Well I said, "according to major online retailers" which isn't just Amazon nor is it implying overall sells. It means just what it says I agree it could go either way though.

kneon1047d ago

@Death

Amazon has always been right about the sales ranking for consoles. It accurately shows the XB1 on top for December so I don't know what you're talking about.

http://www.amazon.com/gp/be...

And now it shows the PS4 ahead of the XB1 for January

http://www.amazon.com/gp/be...

PS4 #8, XB1 #18

MasterCornholio1047d ago

Hmm I wonder what they will announce there?

xabmol1047d ago

Oooohhhh....

OPEN BAR!!!!

Bathyj1047d ago

"Xbox One is gaining in on the PS4"

Stopped reading right there.

VforVideogames1047d ago

Yes Sony has to lower the price or else Xbox its gonna take over US and UK sooner than latter (has anybody seen how close Xbox is to take over?) and may be Japan. The rest of the world its not that important.

Toquinho1047d ago Show
mkis0071047d ago

At the current rate of ps4 gaining a 1.2 million lead in the us every January - October and then losing 500-700,000 in Nov and Dec, Xbox 1 will still never catch up :)

Question answered :)

The rest of the world is responsible for over half the world wide sales...

The japan part is just silly.

+ Show (2) more repliesLast reply 1047d ago
DarkOcelet1047d ago

Its unknown whether the price cut is permanent or not and Sony has nothing to worry about as long as its on the lead and have many exclusives in the upcoming months.

Death1047d ago

I agree to a degree. Sony needs to focus on Sony and the companies overall health. As long as PS4 sales are doing well there is no reason to reduce profitability. The only thing they need to be concerned with is how much marketshare will be lost due to Xbox One sales which have been on the rise in North America and the UK. This could have a long term impact if left unchecked.

All data present and historical points towards Sony having the sales advantage globally. I don't see any reason for Sony to be worried the Xbox will outsell them worldwide. Currently the PS4 is priced $100 less than the higher end Xbox One and $50 more than the lower end SKU's. It's not a bad place to be and sales show this.

DarkOcelet1047d ago

It seems also people are forgetting that the price cut is not everywhere. Middle East has no Xone price cut at all while the PS4 is more likely to have a price cut in certain store offers. So PS4 have a tremendous edge here too.

DanielGearSolid1047d ago

They haven't yet, so i assume no

Malice-Flare1047d ago

if sales slow down, they'll cut the price. bundling TLOU permanently can be considered a price cut...

lemoncake1047d ago

Ps4 is still selling well and Sony need all the money they can get, until that changes don't expect any price cut.

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