Sony's nightmare scenario

ZDnets John Carroll:

To my mind, though, a Microsoft that is first to the price reduction punch is a nightmare scenario for Sony. Though Nintendo might be the current sales leader (trumping both PS3 and XBOX monthly sales), from a competitive standpoint, XBOX 360 is more the direct competitor (at least outside Japan). Both target hard core gamers, and both offer more performance and graphics capability than the lower-cost Nintendo Wii.

An even lower cost XBOX 360 with a larger selection of games and larger installed base is a situation to which Sony will not be able to respond. Sony is limited in how much it can reduce the price of the PS3. They might try, but the higher cost of the PS3 (partly driven by the costs of the mandatory integrated BluRay player) limits their maneuverability. Sony's PlayStation group has been laying people off, and though PS2 still sells well, that isn't sustainable long-term.

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drtysouf214740d ago (Edited 4740d ago )

I just noticed it says this at the bottom of the article "John Carroll has delivered his opinion on ZDNet since the last millennium. Since May 2005, he's been a Microsoft employee."

My opinion is if Microsoft did drop its prices Sony would probably be forced to do the same pretty soon which if that happens lower prices for all us gamers would be a great thing so in the end we win!

Xi4740d ago (Edited 4740d ago )

most people would probably agree that msft has sony by the balls. Halo alone will help move consoles, with gta being a simultaneous release sony is waiting until 08 to get any potential console movers out. A price cut would mean sony isn't making money for a while, and since microsft is hitting that 10mill mark whcih means 3rd party developers are far more likely to keep making games for it.

BrianC62344740d ago

John Carroll is a dork. Who cares what a loser from Microsoft thinks anyway? His nightmare scenario is the Xbox 360 is a piece of junk. I can leave my PS3 on 24 hours a day and I can't even hear it. Try to do that with his junky 360 and his house will burn down. Or the noise will make him go mad.

I don't understand all this garbage about price of the consoles. Big deal, the PS3 is expensive. So what. You buy it to last five years. The way Sony designed the PS3 they should last five years. Anyone who buys an Xbox 360 better be prepared to buy a new 360 every 18 months or so. It just isn't well built.

I don't look at cost when deciding to buy a console. Sony doesn't need a price drop. All they need realy is some new big games. Hopefully that will start soon. They definitely need a lot of them for the Christmas season. If Sony does that the PS3 should be fine.

socomnick4739d ago

Brian how big is your electricity bill :P

nobizlikesnowbiz4740d ago

Yea consumers would win, M$ would most likely win, Sony would end up eating madd $$$$$. They'd be forced to drop their price, when they didn't want to, with no titles still out.

If M$ wanted to kill Sony I think they could right now. Just by dropping the price. Sure they'd eat a lot of losses, but wouldn't it be worth it for them to win this thing?

Vojkan4740d ago

Well the question is:"Are they in it to make money or are they in it to destroy Sony?" I think it's easy to answer. They are in it to make money and all this kiddy games that fanboys love, you wont see it from serious and mature people that are running multi billion dollar industry.
That is just ridiculous. They will lower the price when it suits them, not Sony.

sadiq4740d ago (Edited 4740d ago )

they are in for both, they are currently losing money to take all of sony's exclusives and they are trying to destroy them so they will have less competetion, if sony goes out the next xbox will be crap

VendettaWFT4740d ago (Edited 4740d ago )

MSFT is in a pretty solid position right now with the X360. They would be stupid to reduce the price now and undercut Sony by price discriminating, as they are currently turning a little bit of profit at the price they sell 360's now. The 360 and PS3 are to close to each other in specs and other factors that their isnt' enough product differentiation between them for the consumer, consumers looking for a video game player that is. The only thing helping MSFT is the long list of games and it being relatively cheaper than a PS3, consumers love 'cheap'. This guy is basically regurgitating everything the market has been screaming at us ever since these two consoles have gone head to head. I can only hope Sony gets its act together and do something to save their console.

power of Green 4740d ago

Do they really have to price drop first?.

Sangheili854740d ago

Right now 360 is beating PS3. So i think there is no reason to lower its price. Untill the PS3 sales pick up when that happends which the real question is "When" i feel MS will drop the price to make it even harder for those increasing PS3 sales to increase. Games make the console but 1 or 2 games isn't going to sale 10million copies.

TruthHurts4740d ago

Sony has ALOT of popular games in their library.
thats how the ps2 sold so much.

so 1 or 2 might not but 10, 20 ,50 will sell you 120 mill.

gunnar29064740d ago

another article by MS chatterbox

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