PlayStation 3 And Xbox 360 Price Cuts? Yes And No

At least for the time being, as in the first part of this year, the answer to the question in the title is a definite "no". So the real question is, when will the two next-gen consoles become cheaper? For the Xbox 360, it would be normal to finally see a price cut during 2007, since Microsoft's console has been on the market for over a year now, and by the end of 2006 they had shipped over 10 million units worldwide.

Rumours about a cheaper Xbox 360 were also flying high last year, although Microsoft never really committed to cutting the price in the near future. Unfortunately, that's also the case nowdays, so the only ones who dare predict a price cut are the industry analysts (and various less-versed individuals). But anyway, if you're waiting for a significant reduction, you'd better have plenty of patience and/or tobacco, because a cheaper Xbox 360 is more likely to come along in the second half of this year.

Ironically enough, even though Sony launched their console a year later, the price of the PlayStation 3 was reduced in Japan even before the launch, with around 20%. And they have already begun talking about a new price cut for the PS3, in a (desperate) attempt to stop their gaming division's massive losses, and to gain a larger market share.

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Syko4303d ago

"Sony have just begun the production of 65nm Cell processors. Even if these won't be integrated in the first batch of PS3 units that will be launched in Europe on March 23, the change should become apparent later on this year."

I didn't know that they were already starting to produce 65nm chips, However given all the delays due to blu-ray, I guess the chip has been around for some time. Still good news for the PS3. However on the flip side this does little to offset the cost\loss ratio in the end. But it is a start!

FFVIIFan4303d ago

But they certainly want to reduce the cost of manufacturing so they don't loose about $200 dollars for every system sold.

gogators4303d ago

put alot of pressure on Sony if they would move on a price drop. The 360 really needs a 75-100 dollar price drop if they want to make push for the mainsteam and market dominence.

calderra4303d ago

Or drop the core, and bundle a bigger hard drive with the Pro for all the people who just have to have 5 HD movies, 6 demos, and three dozen CDs downloaded at the same time. Where's the :rolleyes: smiley? Heh.

As said though- even if Sony can muster a price cut, it's nothing Nintendo and MS aren't prepared to undercut.

Funky Town_TX4303d ago (Edited 4303d ago )

After your rights expire you should delete the movie from your HDD.

Dusk4303d ago

Although I think the main thing holding the PS3 back is price, if Sony does cut it, not only will they fall into a bigger financial hole, but it will look like they are begging the public to buy their product, one that currently is collecting dust on store shelves.

Everyone knows Nintendo is making money on each Wii, and the 360 has been out long enough, so either of these two can make a price cut whenever. Honestly, the PS3 is stumbling so badly that I think a 360 price cut is going to depend on if the Wii keeps selling like hotcakes all year long. MS will cut the price on the 360 to compete with the Wii, even though I still don't think the Wii is competing directly with the 360/PS3, but hey, sales are sales. Nintendo will probably cut the price of the Wii as soon as their fast start slows down.

BoneMagnus4303d ago (Edited 4303d ago )

Think about it - Halo 3 is a system seller, and the 360's biggest gun.

My guess is that we will not see a significant price drop - $50-$100 until spring 2008.

I could see a $20--30 drop - the way the PS2 went from $149.99 to $129.99 (which I believe it did to compete with the Xbox at $149 since the PS2 requires the additional expense of memory cards.

That said, a $50 drop right before Halo 3 launches could move that many more systems - heck a $60 drop would allow the console and Halo3 to be had for $399 plus tax. A deal like that just may allow parents to actually consider their kid's Christmas wishlist - as a PS3 - even if available, is a lot for most parents to spend.

In the end, I'm a gamer and not trained in finance. I'm sure they will do whatever will maximize profits in the long term, and whether that means dropping the price to get consoles in homes, holding on to the current price for a specified time, or finding the sweet-spot in the middle, I am completely oblivious.

All that really matters is that we have three commercially successful consoles that will be strong throughout their lifespan. No unfortunate Dreamcast situations here!

Marriot VP4303d ago

instead of 50-60 price drop, how about a Halo 3 + premium bundle for 400.

I still think MS should cut the price in the summer before it but this will be acceptable for most people.

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