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Microsoft Bets: Sony will unveil $399 PS3 this year

It wasn't too long ago when a Microsoft executive was trash-talking Sony. Nay, going so far as to make a bet against their rival gaming manufacturer. Case in point: J. Allard made predicted that Sony's PSP would downright flop. He was wrong, and to honor a bet with Newsweek's N'Gai Croal, he donned dreads and updated his Microsoft company profile page, admitting "N'Gai had it right," and that the PSP was not a failure.

Looks like Microsoft is up to the same antics again. This time, Xbox director of technical strategy and attack blogger Andre "Ozymandias" Vrignaud, is the one to take a bet with N'Gai. He states that "My prediction is that you're going to see the creation of a new, low-end SKU this holiday. It'll likely remove integrated WiFi, memory card reader, and most controversially, all backward compatibility. (Remember, there's still some back-compat hardware in even the new "software only" back compat SKUs; removing the remaining CPU is a significant cost savings.) You'll see a new WiFi dongle made available. And finally, this low-end SKU will likely come with a smaller 40 GB hard drive. The low-end price will be set at $399, with the higher-end 80 GB SKU dropping to $499."

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blog.newsweek.com
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PS360WII3713d ago

Is internal WiFi really that expensive to add into the machine?

Real Gambler3713d ago

It cost next to nothing. You basically only pay for patents as usual. Don't worry about anything said above in fact. Best way to stop sales for a product is to claim that there will be a price cut soon. Everbody then stop buying the product and wait on the sideline until there's a price drop. So it's Microsoft last and only strategy left to fight the PS3. Claim there's a price drop coming after every price drop so nobody ever buy a PS3, waiting for those price cuts. Very, very cheap low blow as far as I'm concerned.
I would rather bet a sandwich that the next console to have a price cut is the 360 since they have been on the market for two years now. But you won't see anybody from Sony using dirty tactics like that to stop the sales of the 360.

Yep, if I was about to buy a 360, I would wait, and wait, and wait until the price drop because it's a fact. The price will drop eventually. No wait, there may be another price drop after the price drop. And yes, there will likely be a Halo3 bundle coming out in january for $250. Yes, you should just wait.

JasonXE3713d ago

cut cost so early? Aren't they confident the ps3 will sell?

hazeblaze3713d ago

I think Sony would be smart to do so but I don't think they plan to keep two sku's on the market still. I think it would be smart... and it's interesting to hear that Microsoft is actually thinking about this strategy... b/c it means they must be planning something as well. But I think that Sony's sales would see a significant turnaround continuing post holiday if they did this... they're going to be okay for the holiday regardless.

Omegasyde3713d ago

It is very advantageous to keep a deluxe and lower end model on the market since most people like choice. This is what drove sales in the MS 360 department with having 3 choices. I think it unfortunately will backfire for MS, since games have to be made with the core version
(No hard drive) in mind from the get go.

$399 Ps3 -or- $299 Core 360 = Budget entry into next gen gaming.
This version sounds optimistic and is a great way to pull in PS2 sales and Ps3 sales.

"but how?"

There is still a amazing majority of Ps2 users, that are:

A) Wait for the Ps3 to have a great libary still with current ps2 topselling games continueing on the ps3. I.E. Console sales will dramatically go up with the next installment of Socom, Final Fantasy, Metal Gear Solid,Grand Theft Auto). People are going to buy a system for a game that had a previos hit version (Halo being the leading example).

B) Ps2 games are still coming. Maybe not as much as before but hit titles like EA sports games for instance are still being made for the system. When the latest Madden or NBA Live stops being produced for the ps2, people will convert to the next generation system.

Q:What if the consumer still wants to play ps2 games?
A:play them on either a deluxe model or them thier PS2. Simple.

----------------------------- --------------------
399 Price drop which I wasn't the first to say was coming, but I did do see it coming. I know that Sony will deliver a basic model when the time was right, when there was enough games on the ps3. The next move however might be the "abandonment" of the ps2 system.

Atleast they supported thier last hardware longer than Ms and Nintendo did. The whole "10 years" of supporting software was sort of misleading on Sony's part. The ps2 did go a ways though and I think its time to bury it alongside the PSX.

Then again, I still see the ps2 dropping to $99 w/game(sing star?) before the $399 model happens.

+ Show (1) more replyLast reply 3713d ago
XxZxX3713d ago

Maybe Sony will just stick to one-sku just to piss M$ off. haha

shysun3713d ago

lol...dosen't matter to me...I have my PS3!:)

jwatt3713d ago

Sony is not going to create another sku, well not this year atleast. Think about by saying this Microsoft is trying to slow down sales of the ps3. If people think another sku is coming then they would wait for that one. Sales are good for the ps3, if they were to release another sku like that it won't be any time soon.

Syko3713d ago (Edited 3713d ago )

I would buy a $399 version in a heartbeat, I have a wired connection, And sold all my PS2 games when the 360 launched. I don't really have a use for the memory card reader either. So this would be a great version for me. I would buy it, but I don't see this happening as backwards compatibility seems to be a big deal for a lot of Sony fans. I just personally never play last gen games on a new system. They are old and look crappy most of the time, so I just buy the new games.

Edit - I forgot about the HDD, but of course it is upgradeable unlike the 360 so who the hell cares. My pet monkey could swap a HDD.

MannyHarlem1413713d ago

pet monkey lol.. you get a bubble, sir

LeShin3713d ago

@Syko 360
"I just personally never play last gen games on a new system. They are old and look crappy most of the time, so I just buy the new games."

Man, you owe it to yourself to go and purchase Shadow of the Colosus, Okami and God Of War 2 and play it on a PS3. Those games will quickly change your attitude :)

Syko3713d ago (Edited 3713d ago )

I guess you're right in a way, I just haven't played a last gen game since November 2005. Everytime I see a PS2/GC/Xbox game I throw up a little in my mouth. Even my Wii just collects dust unless I put the bowling game on. It's not like I am all about graphics either, Just seriously after playing Gears of War for months upon months on an HDTV there is no turning back. LOL

And I havent had a PS2 since about March 05' and I swore I WOULD NOT buy a 5th one. the 360 might suck but everytime it breaks it is fixed for free. I must've spent over $1000 just on PS2's over 5 or so years. DVD drive sucked in those things so I stopped caring about games on it, so that might be 50% of my problem too.

Chava3713d ago

can i have a bubble pls? lol

anyway, this would b a good idea, but i think microsoft are slowly becoming what sony used to be - arrogant, they need stfu NOW

hazeblaze3713d ago

Hmmm... I could kind of agree with you... after going HD, it's hard to watch everything else. At the same time, a lot of hardcore xbots act like they don't care about having a wide variety of HD movies available (blu ray & hd dvd really is a big deal).

When it comes to the games though, there are some classics from pretty much every gen that are always worth playing again no matter how much graphics have advanced. Hardcore gamers don't really ditch games just b/c a new gen has rolled around.

+ Show (2) more repliesLast reply 3713d ago
D_U_I3713d ago (Edited 3713d ago )

BTW $399 and 40 gig is perfect IMO

XboxIsBad3713d ago

Why would ANYONE care about backwards compatibility when you can play uncharted, heavenly sword, gt5, resistance? Oh yeah and Home and LittleBigPlanet? There is no need for last-gen. There would be no point of Xbox now with a $399 PS3. No defects, disc-scratching. And BELIEVE ME better graphics. It would be the perfect PS3. And why would Microsoft bet? They have better things to do like fix the 360.

macalatus3713d ago (Edited 3713d ago )

@XboxIsBad,

First and foremost, PS2 had the LARGEST game library during the last con-gen (console generation) war. Not every PS2 owner was rich enough to buy every great game available for that console. That also includes the PS1 library. The only reason you may disregard this is if you're such a shallow "graphics lover" like Syko that you totally disregard the actual gameplay that made the game itself memorable.
Also, if your logic that no one plays games with WWI-era graphics is true, then please explain why people got excited with the PSN release of Castlevania: Symphony of the Night (along with the flame war if the 360 version is better than the PS3 version).

And FYI, Sony cannot be counted on producing PS2 forever. Once your PS2 dies, you're out of luck.

@Vfor5,

Well, it boils down to personal tastes, and because of that, I would have to respect your opinion. And thanks for not giving any more details to your "games=women" analogy 'coz...um..well, you know what I'm talking about! ;-)

Vfor53713d ago

I'm sorry, but i like my games like i like my women. If a game has terrible graphics where they make me sick, i would just skip over it, just as if a women was ugly but had a good personality, i would skip over her. I'm sorry, you can call me shallow, but i wouldn't be able to show either of the two off to my buddies.

DaEnforcer3713d ago

And I would be the 1st to buy such a SKU. I don't care about Wifi, BC and card reader.