Will The $100 Price Cut Boost PS3 Sales?

Desperate to keep up with Wii's exponential growth and with Xbox 360's surge after Halo 3's launch, Sony has decided to operate another price cut for its troubled PlayStation 3.

Sony Computer Entertainment America announced today that the price of its PlayStation 3 with an 80 GB hard drive will be $499 instead of $599, effective immediately.

Also the 40 GB PS3, announced earlier this month for Europe version will go on sale in United State on November 2.

PlayStation 3's price was heavily criticized by analysts and gamers alike, even from the moment it was announced for the first time. But Sony argued that the price is fully justified, because PlayStation 3 is also a media entertainment hub due to its BluRay drive.

Even with its BluRay, PlayStation 3 is lagging far behind its competitors and it was constantly outsold by Nintendo Wii and Xbox 360.

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PS3 Limps on and on4078d ago (Edited 4078d ago )

I think having all these different sku's give average results. I think it will help somewhat. Both the XBOX elite and XBOX premuim sell.

But they should of just not f*cked around so much and made the 60GB $399, the end. All this sku juggling is not gonna work as good.

That's the bottom line.

crck4078d ago

The 40 gb cost less to make then the 80 gb. So saying the 60 gb should just be $399 doesn't make much sense.

reaperxciv4078d ago

until 2009, by then the ps3 40gb will be $199.95 by the rate it is going now.

PS3 Limps on and on4078d ago (Edited 4078d ago )

If people cared about Blu ray, this is a monster deal. Blu ray player for $199, PS3 for $199. It's ridiculous how good a deal this is.

But it only matters if people pick up on Blu ray. So far they haven't really.

Texas GMR4078d ago

The movies are just too expensive. $30 for a movie is way too much still, so I'll continue to wait.

Bloodmask4078d ago

That is a given. But the PS3 will most likely not catch the install bases of Xbox 360 and Wii. PS3 is still the most expensive out of the 3 consoles when you compare entry price points. 360 at $280, Wii at $250, and PS3 at $400.

In order for the PS3 to catch either the Wii or 360 it would have to sell 600,000 cosoles more than the 360 and Wii for over a year to catch up in install base. If PS3 sales are even marginally close to 360 or Wii, the PS3 will not catch up.

Sometime early next year Microsoft and Nintendo will most likely counter with a price drop of their own, maybe even this year. Which will put Sony in the exact same position they were before.

Anyone who thinks that Microsoft or Nintendo are just going to sit back and let Sony catch up needs to take the other pill and come out of The Matrix.

mikeslemonade4078d ago

It's certain that PS3 won't catch up to the 360 or Wii install base in 2008. However im sure, PS3 will start outselling the 360 in through 2008 in World Wide Sales. It's already outselling 360 almost 2:1 in Europe and since launch it's been outselling 360 about 10:1 in Japan. LBP, KZ2, Gran Turismo, White Knight Story, and FFXIII all have great overseas appeal so that gap is going to widen even more. In the U.S. it's all about the price and you saying PS3 is the most expensive is true, but that's not saying much. The 40gb is $50 more and if you bought 360 you would pay $50 for xbl to play Halo 3, Gears, Rainbow Six, Call of Duty, Madden, NBA 2K8, etc. And the BC-less 40gb PS3 is a non issue for most people. There's too many games coming on PS3 to care about PS2 games. Frankly, the only PS2 game I want to play is God of War 2. For the person who wants to play the next Madden, GTA4, and MGS4 it's a non-issue.

Wii is not going to have a price drop until it atleast meets demand and then some. MS won't drop the 360 price anytime soon because they're starting to pack in games to try to justify the price and they are losing money. They don't expect to make money until late 2008 and if they drop the price again then it would be mid 2009 before they make a profit with the xbox brand. Sony is losing money but not as much as the 1.5 billion dollar red rings situation, so they can justify dropping price.

n4gno4078d ago

What an xbot.

Ps3 still most expensive ? even at 600$ it was'nt :

Wifi, live, hard drive, hd dvd, noise, rod,

reaperxciv4078d ago

price to $199.95, and that will really sell.

competition is healthy.

if the Playstation is the only console out there, damn, it would be mighty expensive.

Spike474078d ago

it sounds like an unbelievable task but it is'nt.

if you consider the life cycle of each console and how many units they have sold and how much time is left it would'nt be hard for sony to make a comeback.

well it will be hard, but it's not at all close to impossible.

a 400 dollar ps3 will boost sales ALOT.

and the difference this time will be that the ps3 is waiting for some nice titles like mgs4 and killzone2.

We'll see.

Kaze884078d ago

I think that the upcoming 40gig is like x0 core so it will sell but not as much the would i say premium ps3(80gig or 60gig in europe).
Price cut is always a price cut and everybody knows what that means...yes , better sales. even if it were minor price cut on any system it will sell better, but the question is how much better.
Im not saying that ps3 would catch wii or x0 but it will definitely sell more and have a better position (as for now the instal base is too small for some game developers to believe in ps3 and make games for it).

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