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PS3 needs a price cut to "remain competitive"

Sony and Kaz Hirai have plenty to think about when it comes to overhauling the company's strategy at all levels. On the gaming front, the company has to prepare for next-gen during a time when it's about to suffer its worst loss in history. It's certainly a fine line to walk.

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Dante1121955d ago (Edited 1955d ago )

Mmm, I don't think so especially after seeing how well and close the PS3 sold to the 360 in March in the USA( 34k difference between them). Happened in February as well, on a 40K difference. I think the PS3 might actually be leading WW this year.

Source: http://n4g.com/news/978823/...

Edit: @ NYC Gamer

Yeah, that be great for both. A $199 PS3 would hit the sweet spot.

blue7_71955d ago

Yeah it kind of does if it wants to stay competitive. 40k difference is quite significant considering the Xbox 360 has had no price cut for who knows how many years now like 4 plus years or more and the PS3 just recently had a price cut which did almost nothing to it. So still being outsold by it's competitor by 40k when one got a price cut and the other didn't is a big deal.

I know I will get disagree but it's true people tend to forget the PS3 had a price cut that's how insignificant it was people forget it actually had one.

Dante1121955d ago (Edited 1955d ago )

@ Blue

But the PS3 still costs more than the 360, even with it's price cut. The 360's been cheaper for 4 plus years as well lol. For the PS3 to be priced more and only get outsold by 34k (was 40k in Feb) in MS's home territory is pretty good to me. That's why you are probably getting diasgrees.

blue7_71955d ago Show
cynosure1955d ago (Edited 1955d ago )

@Dante

"But the PS3 still costs more than the 360, even with it's price cut. The 360's been cheaper for 4 years lol. "

So what?
Sony had two generations of success and mind+marketshare
It shouldn't be trailing the 360 period

"Microsoft does not concern us. Microsoft is not a technology company."
- Nobuyuki Idei, Sony chief corporate adviser in an interview with BBC NEWS

"I have no concerns about the competition."
- Phil Harrison, president of Sony Worldwide Studios speaking at the Game Developer Conference

"I don’t think we’re arrogant."
– Phil Harrison, regarding consumer perception of Sony

"It’s probably too cheap…"
– Ken Kutaragi, Regarding the $499 to $599 price point

"A bit pricey."
- Michael Ephraim, Managing Director of Sony Computer Entertainment Australia, speaking about Nintendo Wii in an interview with the age.com.au

http://next-generationsyste...

GraveLord1955d ago

PS3 was leading in worldwide sales at this time last year as well. But in the end Microsoft out-shipped Sony. Sales tracking sites show that the PS3 was the best selling console of 2011 to consumers.

On topic: Sure PS3 needs a price cut to stay competitive....in America. I'd say the 360 is in serious need of a price cut if it wants to outsell the PS3 this year.

ABizzel11955d ago

Does it need a price cut to stay competitive?

No.

Will a price cut help sales?

Yes.

A $199 price, would probably be enough to finally let the PS3 see a number 1 spot in the US, and possibly number 1 Worldwide for the rest of this generation (Unless we see a $99 360 at the same time).

k-dillinger1955d ago

hey can sum1 tell me what xbox sold ww for the 2011 fiscal year anyone knows because sony hasn't posted for their last quarter yet i wanna compare let me know

http://www.scei.co.jp/corpo...

insomnium21954d ago (Edited 1954d ago )

No need for a pricecut. X360's wind is dying down. X360 sold good cause of marketting of Kinect. The Kinect fad is dying down as it clearly points out in NPD sales numbers.

If anything X360 needs another ad campaigne to remain above PS3. The difference in sales that X360 gains in a month in USA is offset in a week or two in Japan alone. Europe favours also Sony so unless MS comes up with a hefty pricecut or an ad campaigne this is more than likely going to be the year when PS3 starts leading against X360 in lifetime sales.

You heard it here first folks. You can bookmark this if you want.

miyamoto1954d ago (Edited 1954d ago )

Never trust them sales figures.
These bloggers are just generationg buzz & clicks. same old story. Let Sony run their business. word wars ain't gonna change nothing for Ps3.

TotalHitman1954d ago

America isn't the world Dante...

Look at Japan and the rest of the world. The PS3 is doing fine.

SilentNegotiator1954d ago (Edited 1954d ago )

"40k difference is quite significant"

They were both >330K in sales, so not really. 40K is like, 12% or so of those figures.

Montrealien1954d ago (Edited 1954d ago )

To think that over 6 years into the current console cycle, people are still arguing about this nonsense, is hilarious.

Montrealien1954d ago

@GraveLord

It's been proven time and time again that both Sony Nintendo and MS use shipped numbers in their repports.

Thinking Sony alone would be stupid enough to downvalue their stock by simply stating the sales to customers is a fanboys utopic wet dream...

zero_cool1954d ago

No but it could put it over in sales so just look at it that way.

Cheers Gamers & Happy Gaming!

Gamer19821954d ago

The ps3 might be leading WW this year? Its been leading WW for a long time. It's only US its not been leading as for price cut in the UK seems it has got one most stores have already cut it to £160 for 160gb version. That's the same price as the 360 slim 4GB.

+ Show (13) more repliesLast reply 1954d ago
Christopher1955d ago

It does, but it won't matter. Microsoft hasn't dropped its price because it hasn't had to, not because it won't make money on a lower price. If Sony lowers its price, so will Microsoft.

The only thing Sony can do is drop it drastically to a point that will at least match what Microsoft will price their low end console.

If Sony can't compete with the low-end price point of the 360 in the U.S., it will continue to get trampled. And, even with that type of price point, sales likely won't see but a temporary surge but not enough to make that much of a dent in the U.S. Worldwide may be another item.

sikbeta1955d ago (Edited 1955d ago )

No price-cuts before/until Wii-U launch, MS is smart and will block with price-cut, Sony will follow

Megaton1955d ago

Agreed. It needs a cut, but it will have minimal impact anyway. Sony is in a tough spot. They dawdled and made too many missteps for too long and now Microsoft has the "it" console. I don't think the PS3 will ever surpass the 360 in sales, and I have serious doubts about Sony's performance next generation as well.

I think Sony's success next gen hinges entirely on whether or not the network effect created by the 360 will extend to Microsoft's next console. It's Microsoft's game to lose moving forward. Sony will have to continue working to claw their way out of the hole they created for themselves this generation.

lover20121955d ago (Edited 1955d ago )

@Megaton
wow yes mmmmm
ps3 in very tough spot that why the gap is almost closed
now 2.5m
after it was 9m with a year head start for xbox
and it was only 34k behind xbox in xbox home this month
how are the sales of xbox in ps3 home BTW ??

ps3 is doing very amazing job in worldwide and looking at the numbers in NPD it's doing amazing too in US
it does not need a price cut at all
but you guys can say
and beleive what ever help you sleep the night

Christopher1955d ago

@lover2012: The gap being discussed is specific to NA. That gap is about 13M in NA. So, when the analysts say what they think will help Sony to decrease this gap, you can't just throw the logic of the worldwide numbers at them. They're not talking about that. They're keeping it solely to NA numbers.

I agree that Sony makes up for a ton of their losses in Europe and Asia, but that doesn't change the status of sales in NA.

Megaton1955d ago (Edited 1955d ago )

Not to mention that the worldwide gap was down under 1 million in the past. It has been steadily growing for a couple years now as Microsoft dominates the world's largest market.

People like to point to Japan as proof of Sony's success, but Japan is a small fraction of the size of the NA market. Europe is a better sample of success abroad, but it's also significantly smaller than the NA market. Sales in Europe are also typically pretty close between the 360 and PS3.

@cgoodno - It was down to around 500k if I remember correctly. There were articles around here beginning to claim the PS3 had passed the 360 because of it. It was in 2008, I think. The year when Sony was outselling Microsoft in all regions until Q4 (thought to be the result of Microsoft channel stuffing in late 2007).

Christopher1955d ago (Edited 1955d ago )

***Not to mention that the worldwide gap was down under 1 million in the past. It has been steadily growing for a couple years now as Microsoft dominates the world's largest market.***

No, that's not true. Closest it's gotten is to about 3m. It's grown to a max of about 4M since then and has fluctuated between 3.6M and 4M since then. It was never down to 1M, let alone even 2M based on official numbers (who knows with VGChartz numbers, though).

@Megaton: ***It was down to around 500k if I remember correctly. There were articles around here beginning to claim the PS3 had passed the 360 because of it. It was in 2008***

That was only on annual worldwide sales. That was not total console sales since this generation began.

@below: ***so what are you saying is sony should lower the price to close the gap in one region ***

I agree with the analysts that are saying it. I also say that it won't have as drastic of a result as people may think, but it will open up some potential for Sony to increase software sales dramatically, which is where they make most of their money in the first place. Since they are only slightly behind 360 in software sales worldwide, increasing their customer base will only make it so that they can sell even more software to beat 360 at that without having to actually beat them at hardware sales in the U.S.

Gamer30001955d ago (Edited 1955d ago )

"I agree that Sony makes up for a ton of their losses in Europe and Asia, but that doesn't change the status of sales in NA "

so what are you saying is sony should lower the price to close the gap in one region
when they are dooing mighty fine in the rest of the world ????

in japan xbox is dead
can you show me what region ps3 is not selling well in it ???
even in NA it's doing very awesome even when it's the most expensive console
if sony lower the price
to let's say 200 or 199
xbox wouldn't stand a chance

cynosure1955d ago (Edited 1955d ago )

@Lover1201

The gap is 3.8 million based on last fiscal reports
The gap was 8 million not 9 million
It wasnt a year head start.
It was Sony launching a year late

http://www.gameinformer.com...

http://en.wikipedia.org/wik...

Christopher1955d ago

***It wasnt a year head start.
It was Sony launching a year late ***

PS1 - Dec. 1994
PS2 - Mar. 2000
Xbox - Nov. 2001
Xbox 360 - Nov. 2005
PS3 - Nov. 2006

Sony created a 6-year separation between releases. Microsoft only had 4 but hasn't kept up with that.

Either way, both Sony releasing late and Microsoft releasing ahead is a comparative statement making both of them true. You've just chosen to shine a negative light on Sony rather than a positive one on Microsoft.

aaronobst1955d ago Show
insomnium21954d ago (Edited 1954d ago )

My god some of you people must be insane....

Could someone please enlighten me what does it matter that/when/if USA is the biggest market when the difference is only 34k-40k a MONTH between PS3 and X360? In what way is the size of the market even relevant?

I would say purely based on facts that Japan is way more significant market since the difference in sales between these very same consoles is TRIPLE in a month there.

Do you people understand where I'm coming from with this? Are you capable of looking at this subject in an OBJECTIVE manner? 1+1=2 you know.....right? I have no idea how is it even possible to not to see this.

@cgoodno
***
***Yeah but when putting up an article about a system needing a price cut, you have to take all units worldwide into account***

I disagree with that. ***

A pricecut solely in USA would anger other regions so...

Christopher1954d ago (Edited 1954d ago )

***A pricecut solely in USA would anger other regions so...***

i'm fairly certain you understand that a price cut would be worldwide. I also hope you understand that analyzing and discussing the issues of a region happens every day. So, when I say we don't have to take into account world figures, meaning how many are sold outside NA, that's what I mean. I didn't say the price change wouldn't be global. I said, much like how there is an SCEA, you analyze what you need to do to help grow the business in one region as well as them all. And the answer is not always going to be the same from one to another. But, when the answer in one region ends up being a price drop, it will likely affect the other regions as well, even if they don't need it like the region in question.

+ Show (9) more repliesLast reply 1954d ago
showtimefolks1955d ago

well if we are asking sony to cup the price to compete with xbox360 than i feel like that's just stupid, Xbox360 has a killer app called kinect there is no way for sony to compete with that. Sony needs to keep doing what its doing and 34K difference in march and 40K in february doesn't mean much when world wide sony will recover that number and than gain ground.

34K difference covered in japan and than some for sony.

I think sony this time around will wait for MS to drop the price because let's say MS goes to $250 than sony can follow that up with $199 and make bigger news, and with that extra attention they can sell faster

I don't know when people will realize this but xbox360 can stay ahead few million but if end of this gen ps3 is at 110 million and xbox360 is at 113 what's the difference? its about selling well its not a race so if sony can still sell over 100 million ps3's how is that not success. This fanboy war is just between gamers i don't think MS or sony care as much as long as they keep on selling their systems

from the reports next xbox360 will have bluray that means some sort of way some money will go to sony

sony's computers use windows and MS software so they have to pay MS

right now to sony it should be about keep the sales up and making a profit you tell me how they gonna make the profit if the cut another $50?

mcstorm1955d ago

I agree with what you have said and tbh the salws of both the 360 and ps3 are doing well so late on in the gen. Yes sony lost some of the market to ms and nintendo this gen but it could be different next gen too.

For me sony need to drip the price of the psv to get its sales up lake nintendo did with the 3ds before developers decide to drop there support for the poor sales.

Jazz41081955d ago (Edited 1955d ago )

This is the same pattern every year. Usually sony until recently was even outselling 360 in the us at the beginning of the year. Ten when the holiday season hits 360 outsells ps3 worldwide and pushes the gap back up. This has happened so many times I can't believe anyone is even praising sony for only being 38.000 consoles behind for a month in NA where they are 13 million behinf lifetime. Wait till holiday and 360 wll outsell the ps3 ww again. Ribnse and repeat.In response to america being anti ps3 then why don't you add north ameirca to the ever increasing ban list that sony and fas are known for.

cynosure1955d ago (Edited 1950d ago )

@ Gravelord
360 was the number one selling consoles based on fiscal reports directly from the companys.
There is no such thing as over shipping.Everything works off supply and demand

http://www.gameinformer.com...

http://www.microsoft.com/in...

http://www.scei.co.jp/corpo...