Pachter Believes Bigger Price Cuts Needed for PS3, Xbox 360

"'As consoles come down in price,' he explained to Gamepro, 'the manufacturers will sell more of them, and the market will continue to expand. Around 90% of last-generation console sales were made at the $199 price point or below.'

Continuing, he said, 'Only wealthy or hardcore gamers have purchased consoles so far, given that the PS3 is still $399, the 360 is still $349, and the Wii is still $249. When prices drop below $200 (probably in 2010), the mass market [for PS3 and 360] will emerge.'"

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Relin3768d ago

This has been said for years - as proven by the PS2, $199 is a magic number. I'm sure the Wii will prove it yet again.

hazeblaze3768d ago

Actually, I think that the Wii has proven that the magic number has seen a little bit of inflation... it's gone from $199 to $249. The 360's arcade sku may see that price this year, but I don't think anyone really wants that one. I think 2009 will be the year that the hardcore systems (PS3 & 360) see more sales explosion and prices below $300.

niall773768d ago (Edited 3768d ago )

How pays this man?

Because clearly Sony and MS need to pay him more and get him working for them so they can get these pearls of wisdom.


ThanatosDMC3768d ago

I know! I mean, if something is cheap and affordable, of course people would buy... damn, it's like thanks for stating the obvious dipsh!t!

Skip_Bayless3768d ago

Th PS3 with free online and blu-ray player doesn't need a price drop until this fall.

Relin3768d ago

I disagree - the PS3 needs a price drop as soon as Sony can afford it... perhaps sooner.

juuken3768d ago

Well, if it's true that MS is planning a price cut, then Sony has to make a move.

hazeblaze3768d ago

I think it's dumber for Microsoft to cut the price without any major games to correspond with the price drop. It will get a boost for 2-3 weeks and then fade right back to normal. Sony would be smarter to drop their price a week or two before the release of Little Big Planet or SOCOM. At least if Sony dropped theirs now, MGS4 is still fairly new. But MS's move seems a little more desperate.

Solid_Snake6663768d ago

price drops but only for a short period

juuken3768d ago

Damn straight haze! Them 360's aren't selling fast enough!

+ Show (2) more repliesLast reply 3768d ago
eagle213768d ago (Edited 3768d ago )

Only one console sold 127 million, and it stayed the highest in price. It's still $130 (and still selling) not even $99 yet! :)

The Wii has the strongest demand currently selling out at $249 with no HD.

PS3 has so much value under the hood, $249 will be a healthy mass price for it in America and Europe.

Demand means everything. :)

Relin3768d ago

Good points.

I love my PS3 to death, but I don't see demand for it rising dramatically this generation when it's image continues to be in such flux. Whether that can be blamed on Sony, the media, or dumb luck is another discussion, but with frequent (and dramatic) firmware updates and a software library just now starting to hit its competitive stride, it's gonna take some aggressive marketing to pull it up.

Even at $249, people will still probably pick up a Wii because of its image.

eagle213768d ago (Edited 3768d ago )

But I differ about the image point.

PS3 does not have a image problem. The Wii's success is based on their Wii-mote and marketing. On PS3 and Wii both share 4.5/5 star review averages and stay in the top 25. 360 a 3/5. Word of mouth and brand is why PS3 is rising.

Think about all the trash that gets reported about "lack of Wii third party games" or "RROD". Most people are not really paying attention to it. :)

Those Walmart deals had the PS3 at a $299 value (with gift card) for the 40GB and they edged the Wii for a week worldwide. $249 will be fine for PS3. There is room for two. :)

Edit: I agree bro, there is nothing stopping the Wii (not even a newton controller). Nintendo is fine. I meant that the PSWii will happen more than expected this generation, that's my point.

Relin3768d ago

Yes, popular perception of the PS3 is rising, but the only place I see the Wii's reputation falling is with core gamers; we're a vocal lot, but definitely a minority, and the consistently high Wii sales show that. The PS3 does, however, have a statistically higher rated selection of games, even if it is a degree smaller than its competitors, and I think that will help them reap some benefits in the long run.

My point: $249 is step 1, reclaiming the Playstation brand is step 2, and step 3 is profit. I'd go so far as to say $300 might do just as well if Blu-ray continues its rate of growth, but my crystal ball is in the shop.

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