PS3 Price Drop - How will the Xbox 360 be affected?

Target has dropped the price of the 60GB version of the PS3 from $599.99 to $499.99. There is no word if the price of the 20GB PS3 will be lowered by the same amount, if at all. The long-rumored price drop will no doubt fan the flames of a rumored Xbox 360 price drop. However, with Microsoft's recent losses of over 1 billion dollars due to extending the warranty of the Xbox 360, there will be some question if Microsoft is willing to spend more money at the moment on its game console.

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nice_cuppa3906d ago (Edited 3906d ago )

and who is to say Xbox 360 isn't getting a price cut too ?

its to early for this thread.

chasegamez3906d ago

xbox360 is not price cut because of that 3 year free repairs

TheMART3906d ago

Where can one find a 20GB PS3 model? Weren't even in shops overhere @ launch

Plus, you'll see the 360 drop in price any time soon if the PS3 really gets its price cut.

It'll hurt the PS3 instead of helping it. The 360 stays cheaper, and getting closer to 200 dollar/euro, where mass of people buys consoles

TheExecutive3906d ago

well, i dont think it will hurt the PS3, but it does help competition.

Greysturm3906d ago (Edited 3906d ago )

Mart might be right but lowering the price on the 360 will compromise Microsofts gaming division. They havent turned a profit since inception with a plan to go into black numbers this year, regardless of how much money the other sections get to compensate, investors in the company will start doubting the business sense of such a move. Frankly i would like that the 360 gets a price cut so i can think of buying one but seeing the hell of a week they had and their latest investements i dont see the 360 getting a price cut anytime soon if they wanna loose the reds.

DrRage773906d ago

yeah but what most people are not realizing is that microsoft has NOT actaully lost 1 billion for the extended warranty they just implemented. that is the number that they have estimated it could cost if 25% of the consoles will require repairs. they used the number to report the loss for the year so it does not affect their profit numbers for the upcoming year. they have not actually spent 1 billion due to this extended warranty policy, it is money they have estimated and allocated for future repairs. i am actually quite surprised that there is no article from an analyst that is pointing this out to people...everyone seem to be assuming that it is a clearcut $1 billion dollar loss at this exact moment.

with this in mind, i stil think the 360 will get a pricedrop. microsoft did say that they will still be on track to make their gaming division profitable by q1 or q2 of 2008. if it turns out that 25-30% of the 360 consoles require repairs within the next year or two, then so be it

chasegamez3906d ago

i had 2 360 and both turn up red ring (got cash back)
i will not roll the dice on another 360 its just 2 risky

TriggerHippie3906d ago

Didn't they also say they were refunding people who had to pay to get the RROD fixed in the passed also? If that were the case then they would have a loss imediatly since they are giving money back to the consumer... but correct me if i'm wrong to lazy to look right now.

xTCx Death3906d ago

this holiday the cost of making the 360 will drop considerably with the 65nm chip and just general materials dropping in price. with MS strong stance on going profittable in FY08 the pricedrop will come and more marketshare with it

power of Green 3906d ago

So how will PS3 price drop effect the 360?, not much even if MS doesn't match the move its still too high and is part of the reason the 360 has a harder time than it should because its too exspensive aswell.

But if MS does drop the price which its about due anyaway .(MS at or past the standard time anyway). Sony's droping un-natually eairly MS will probably say ok we'll drop the price for Xmas and this will put the 360 lower end 360 in the mass market range and could hurt Sony because they did not wait for more games to keep people from buying a console with price in mind first in stead of head turning titles first.

Little timmy isn't going to remember E3 around Xmas he'll be looking at video in shops grabing mommys arms pointing at games running on tv's at that time with games out at that time.

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