Microsoft Bets: Sony will unveil $399 PS3 this year

It wasn't too long ago when a Microsoft executive was trash-talking Sony. Nay, going so far as to make a bet against their rival gaming manufacturer. Case in point: J. Allard made predicted that Sony's PSP would downright flop. He was wrong, and to honor a bet with Newsweek's N'Gai Croal, he donned dreads and updated his Microsoft company profile page, admitting "N'Gai had it right," and that the PSP was not a failure.

Looks like Microsoft is up to the same antics again. This time, Xbox director of technical strategy and attack blogger Andre "Ozymandias" Vrignaud, is the one to take a bet with N'Gai. He states that "My prediction is that you're going to see the creation of a new, low-end SKU this holiday. It'll likely remove integrated WiFi, memory card reader, and most controversially, all backward compatibility. (Remember, there's still some back-compat hardware in even the new "software only" back compat SKUs; removing the remaining CPU is a significant cost savings.) You'll see a new WiFi dongle made available. And finally, this low-end SKU will likely come with a smaller 40 GB hard drive. The low-end price will be set at $399, with the higher-end 80 GB SKU dropping to $499."

[PS360WII]

Is internal WiFi really that expensive to add into the machine?

[Real Gambler]

It cost next to nothing. You basically only pay for patents as usual. Don't worry about anything said above in fact. Best way to stop sales for a product is to claim that there will be a price cut soon. Everbody then stop buying the product and wait on the sideline until there's a price drop. So it's Microsoft last and only strategy left to fight the PS3. Claim there's a price drop coming after every price drop so nobody ever buy a PS3, waiting for those price cuts. Very, very cheap low blow as far as I'm concerned.
I would rather bet a sandwich that the next console to have a price cut is the 360 since they have been on the market for two years now. But you won't see anybody from Sony using dirty tactics like that to stop the sales of the 360.

Yep, if I was about to buy a 360, I would wait, and wait, and wait until the price drop because it's a fact. The price will drop eventually. No wait, there may be another price drop after the price drop. And yes, there will likely be a Halo3 bundle coming out in january for $250. Yes, you should just wait.

[JasonXE]

cut cost so early? Aren't they confident the ps3 will sell?

[hazeblaze]

I think Sony would be smart to do so but I don't think they plan to keep two sku's on the market still. I think it would be smart... and it's interesting to hear that Microsoft is actually thinking about this strategy... b/c it means they must be planning something as well. But I think that Sony's sales would see a significant turnaround continuing post holiday if they did this... they're going to be okay for the holiday regardless.

[Omegasyde]

It is very advantageous to keep a deluxe and lower end model on the market since most people like choice. This is what drove sales in the MS 360 department with having 3 choices. I think it unfortunately will backfire for MS, since games have to be made with the core version
(No hard drive) in mind from the get go.

$399 Ps3 -or- $299 Core 360 = Budget entry into next gen gaming.
This version sounds optimistic and is a great way to pull in PS2 sales and Ps3 sales.

"but how?"

There is still a amazing majority of Ps2 users, that are:

A) Wait for the Ps3 to have a great libary still with current ps2 topselling games continueing on the ps3. I.E. Console sales will dramatically go up with the next installment of Socom, Final Fantasy, Metal Gear Solid,Grand Theft Auto). People are going to buy a system for a game that had a previos hit version (Halo being the leading example).

B) Ps2 games are still coming. Maybe not as much as before but hit titles like EA sports games for instance are still being made for the system. When the latest Madden or NBA Live stops being produced for the ps2, people will convert to the next generation system.

Q:What if the consumer still wants to play ps2 games?
A:play them on either a deluxe model or them thier PS2. Simple.

----------------------------- --------------------
399 Price drop which I wasn't the first to say was coming, but I did do see it coming. I know that Sony will deliver a basic model when the time was right, when there was enough games on the ps3. The next move however might be the "abandonment" of the ps2 system.

Atleast they supported thier last hardware longer than Ms and Nintendo did. The whole "10 years" of supporting software was sort of misleading on Sony's part. The ps2 did go a ways though and I think its time to bury it alongside the PSX.

Then again, I still see the ps2 dropping to $99 w/game(sing star?) before the $399 model happens.

[XxZxX]

Maybe Sony will just stick to one-sku just to piss M$ off. haha

[shysun]

lol...dosen't matter to me...I have my PS3!:)

[jwatt]

Sony is not going to create another sku, well not this year atleast. Think about by saying this Microsoft is trying to slow down sales of the ps3. If people think another sku is coming then they would wait for that one. Sales are good for the ps3, if they were to release another sku like that it won't be any time soon.

[Syko]

I would buy a $399 version in a heartbeat, I have a wired connection, And sold all my PS2 games when the 360 launched. I don't really have a use for the memory card reader either. So this would be a great version for me. I would buy it, but I don't see this happening as backwards compatibility seems to be a big deal for a lot of Sony fans. I just personally never play last gen games on a new system. They are old and look crappy most of the time, so I just buy the new games.

Edit - I forgot about the HDD, but of course it is upgradeable unlike the 360 so who the hell cares. My pet monkey could swap a HDD.

[MannyHarlem141]

pet monkey lol.. you get a bubble, sir

[LeShin]

@Syko 360
"I just personally never play last gen games on a new system. They are old and look crappy most of the time, so I just buy the new games."

Man, you owe it to yourself to go and purchase Shadow of the Colosus, Okami and God Of War 2 and play it on a PS3. Those games will quickly change your attitude :)

[Syko]

I guess you're right in a way, I just haven't played a last gen game since November 2005. Everytime I see a PS2/GC/Xbox game I throw up a little in my mouth. Even my Wii just collects dust unless I put the bowling game on. It's not like I am all about graphics either, Just seriously after playing Gears of War for months upon months on an HDTV there is no turning back. LOL

And I havent had a PS2 since about March 05' and I swore I WOULD NOT buy a 5th one. the 360 might suck but everytime it breaks it is fixed for free. I must've spent over $1000 just on PS2's over 5 or so years. DVD drive sucked in those things so I stopped caring about games on it, so that might be 50% of my problem too.

[Chava]

can i have a bubble pls? lol

anyway, this would b a good idea, but i think microsoft are slowly becoming what sony used to be - arrogant, they need stfu NOW

[hazeblaze]

Hmmm... I could kind of agree with you... after going HD, it's hard to watch everything else. At the same time, a lot of hardcore xbots act like they don't care about having a wide variety of HD movies available (blu ray & hd dvd really is a big deal).

When it comes to the games though, there are some classics from pretty much every gen that are always worth playing again no matter how much graphics have advanced. Hardcore gamers don't really ditch games just b/c a new gen has rolled around.

[D_U_I]

BTW $399 and 40 gig is perfect IMO

[XboxIsBad]

Why would ANYONE care about backwards compatibility when you can play uncharted, heavenly sword, gt5, resistance? Oh yeah and Home and LittleBigPlanet? There is no need for last-gen. There would be no point of Xbox now with a $399 PS3. No defects, disc-scratching. And BELIEVE ME better graphics. It would be the perfect PS3. And why would Microsoft bet? They have better things to do like fix the 360.

[macalatus]

@XboxIsBad,

First and foremost, PS2 had the LARGEST game library during the last con-gen (console generation) war. Not every PS2 owner was rich enough to buy every great game available for that console. That also includes the PS1 library. The only reason you may disregard this is if you're such a shallow "graphics lover" like Syko that you totally disregard the actual gameplay that made the game itself memorable.
Also, if your logic that no one plays games with WWI-era graphics is true, then please explain why people got excited with the PSN release of Castlevania: Symphony of the Night (along with the flame war if the 360 version is better than the PS3 version).

And FYI, Sony cannot be counted on producing PS2 forever. Once your PS2 dies, you're out of luck.

@Vfor5,

Well, it boils down to personal tastes, and because of that, I would have to respect your opinion. And thanks for not giving any more details to your "games=women" analogy 'coz...um..well, you know what I'm talking about! ;-)

[Vfor5]

I'm sorry, but i like my games like i like my women. If a game has terrible graphics where they make me sick, i would just skip over it, just as if a women was ugly but had a good personality, i would skip over her. I'm sorry, you can call me shallow, but i wouldn't be able to show either of the two off to my buddies.

[DaEnforcer]

And I would be the 1st to buy such a SKU. I don't care about Wifi, BC and card reader.

[jtmill07]

Don't you think it would be easier to bring back the 20 gig and sale it for 399. Maybe Sony just wanted to see what the 60 gig would do frist at 100 dollars off.

[XxZxX]

the new one doesn't have EE inside. Cheaper.

[hotshot1237]

we already saw what happen when they dropped it 2 500. imagine 400 and average person dosnt even know what wifi and all that other stuff is so bring it home sony. honestly once 2008 hits. its a wrap for microsoft. sony will keep on movin up while microsoft gets worst and worst. MARK MY WORDS. remember that they came from hotshot1237.

not 2 much longer till they take there rightful place again

off topic but u know some 360 fanboys were sayin on other sights. they said mgs added nothing new. this is what i said to them

whooaa. r u people serious. mgs has changed significantly. b4 u couldnt play the whole game in 1st person or over the shoulder. that alone is better then halo.lol. u couldnt camouflage in with the text of ur surroundings. u couldnt jump to the side. u couldnt go on ur back on throw grenades and shoot. u couldnt go in trash bins. u couldnt play dead the way u do now. u couldnt crall on ur back. he has new moves. knife moves and new cqc moves. the graphics r excellent. ITS IN THE MIDDLE OF A WARZONE. (BIGGEST CHANGE) u couldnt use a mini metal gear. it didnt have motion sensor. almost everything has changed but it still has the original feeling of old mgs games which EVERY sequel has 2 have that to keep old fans playing it. HALO only got new weapons basically. and i only know 1 person who does story mode, so multi is still same. u xbox fanboys r just angry cuz u not gettin now that they just signed in agreement at the anniversary confirming its exclusive 4 good. MAYBE IF U ACTUALLY PLAY THEM. PEOPLE WOULD KNOW WHAT CHANGED. think b4 u type

[Gil]

You should think before you type. Maybe if you had, you wouldn't have posted that mostly off-topic diatribe. First of all, it should be "worse and worse", not "worst and worst". It is "take their rightful place", not "there". The word is "doesn't".
Next time, think before you type and use spell check after you do. Otherwise I suggest you stop worrying about Microsoft and Sony and focus on school or after your parents stop supporting you, your career as a fry cook will not pay you enough to play video games.

[MannyHarlem141]

the most expensive component is the blu-ray drive, followed by the cell and rsx... the internal wi-fi doesn't cost more than 20 bucks to integrate.

Microsoft made a killing on me with wi-fi.. i paid a whopping 99.99 +tax for the cheap antenna that uses up a usb port.. but that technology is actually very cheap

they have to cut costs somewheres, they cant possibly remove blu-ray or the requisite hard drive or any other thing.. the backward compatibility however they can do without

[ocra]

what up xbottos? good luck with your machines...

[Meus Renaissance]

Microsoft - as Shane Kim has said - are very aware of the popularity of the PlayStation brand, and if the PlayStation 3 were to be priced at this figure before 2008, and even with a rumoured $50 price drop occurring for the Xbox 360, that difference alone will not be enough to sway that large fanbase from buying a PlayStation 3.

According to Kim, this "thankfully" hasn't happened yet and if it does, I just cannot see it being feasible for Microsoft to drop the price of their console down to $299. They are quite limited in regards to this, they can't keep going down on price - something Sony can.

But regardless of what happens, 2008 will be pivotal and in my opinion, the forecast then will determine who wins this console war.

In my humble opinion

[The Swordsman]

2008 will be the year when war really begins. By this time, Microsoft should have fixed any technical problems with the Xbox 360 and the PlayStation Network should truly be up and running for the PlayStation 3. Sony and Microsoft will be giving it their all to show which console is the real seventh generation experience.

[razer]

then the rules will just change again.. Before the 360 launched it was "The first one to 10mil wins" and then MS hit 10mil and now it's just wait until the season holiday of XXXX and it will determine the winner.. blah, blah, blah..

[Expy]

That Microsoft rep is pretty stupid if he thinks Sony would pull that move. They aren't going to remove VITAL hardware that most gamers want from a system, unlike they did.

[the_round_peg]

For Microsoft's Vrignaud to win the bet, he will have to be right on the exact specifications, (i.e., no Wi-Fi, and no memory card reader, and no backward compatibility, and 40 gig hard drive,) the exact prices, AND the exact release date.

While N'Gai Croal will win if nothing or the default condition happens, i.e., Croal wins as long as one of those conditions fails to come true.

Vrignaud set up so many conditions for himself to win the bet, and he did not set up any condition for Croal to win! The odd of all those conditions will happen all at once (and of Vrignaud winning the bet) is just very, very slim.

What sort of idiot would make that kind of bet? An idiot who works for Microsoft! I thought Microsoft tested their employees for IQ before hiring. (Or maybe he really wants to lose so he will get the excuse to treat Croal and get on Croal's good side.)

[Marty8370]

Sony should just sell upgradeable drives in different size's for the PS3 like: 40Gb, 60Gb, 80Gb, 120Gb, 160Gb, 200Gb & 250Gb. Rather than more SKU's.

(Plz help - I need bubbles)

[Daishi]

I agree, they should do what they said they were going to do before it even came out and have a "build to order" sku. Set it up where you start with a 20GB HDD and no wi-fi or BC and no rumble, maybe even wired controllers (doubtful but that would drastically lower cost) and start it at $399. Then add all the upgrades one could possibly hope for at the buyers whim. They need to stop discontinuing sku's and offer a build to order service (like they originally said they would!). Imagine all those kids who got all excited about the price drop just to find out that there will not be a $499 PS3 for Christmas, cause when the 60Gb runs out that's it unless they offer something new!

[D_U_I]

hehehehe i wonder how many ps3 will sell if this happens.

[kewlkat007]

I believe there is a new SKU coming, as if this is not getting more ridiculous, but to be honest, if the new SKU does what the 80 GIG SKU does, for $400-below, then I might get one, when I save up.

How is Sony really differentiating all these SKU's? Are they back-tracking?, I mean is this something they should of done, instead of the watered down, 20GIG SKU they got rid of?

I always said I would not pay for no format war. I don't watch DVD's and need no wireless. If there was a $400 price from the getgo, a lot of my reasoning would of been different up till now about Sony's strategy.

This is really getting confusing to consumers because it effects every region....

Anybody else agrees with PS3Fan#13(very rare) - "Sony should just sell upgradeable drives in different size's like: 40Gb, 60Gb, 80Gb, 120Gb, 160Gb, 200Gb & 250Gb."

Hey MS is doing it and charging up the Wazoo..

[MK_Red]

A new SKU is not far from reality but removing key features of PS3 is rather unlikely. I believe a new model with less HDD could be on its way but removal of things like WiFi would be too risky.

[uxo22]

Jeez, just reading the intro to this article was strange, this story has a Sony fanboy / anti-microsoft seniment to it from the start. I almost didn't click to read more simply because the intro had NO objective starting points, it has "witch hunt" written all into it. I have read stories and blogs written by "N'Gai Croal" in the past, this guy is the poster child for sonyfanboys.

I read this site as part of my morning newspaper/current events, what's happening in the world...each day. But man, this place is getting to where all you see each day is bomb and name dropping, and sucker punches thrown as the norm. Whatever happen to responsible journalism. I guess this is the results of allowing blogs (personal opinions) be approved as news.

Are there any objective good reading gaming news sites left or have they all be taken over by left and right wing fanboy extremist (humor) If someone knows of a site out there with more objective news, and less fanboy Bullsh!t, please drop me the link. I need a break from this place.

I look at my 360 and PS3 each day and say, "WOW this is WWII all over again, (one's the Americans the other is the Japanese.) but this time it's being fought by electronic companies with a army of Fanboys?

just the kinda stuff that makes you go hmmm....

[PS-Wii-60]

If PS3 goes down WW3 is on =/

[Meus Renaissance]

If they removed the WiFi and such, then what would have been the point of stopping the 20GB SKU?

They stopped that because it wasn't selling; so I'm confused by the logic that Sony will produce another similar SKU that is stripped down, something the consumer rejected first time round.

[xmod]

The 20gb was at $499, the 40gb (proposed) will be at $399. That $100 difference is huge.

Also, the 20gb ps3 had the EE and GS. This proposed $399 ps3 will lose both (lower costs but no BC).

See this post I made on the Playstation3 forums:

http://boardsus.playstation...

[LeShin]

Okay, not too sound like a dumbass, but if they removed Wifi, won't that stop the psp communicating with the PS3 aka no remote play (which is awesome)

Oh well, I got my PS3 at launch :)

[Meus Renaissance]

Well remembered.

[PS360WII]

oh snap good point. Yet same as you I have my PS3 with WiFi and it's awesome ^^

[MK_Red]

Superb point on WiFi. Strange that everyone (Including myself) had forgotten to mention it.

If they release a new SKU for chrismas, it may have no disadvantages to current models but be way cheaper since the production costs are going down in electronics world and new hardware for PC and other machines replace the older ones, bringing down their price.

[Odion]

Clearly if they did this MS would be ready for it, and as that gameindustry biz paper said today Sony is still loosing money on each unit, the chances are it won't happen, it would be the wierdest move ever, as they had a lower end model.

[Wolfgang187]

It's almost as if they want to drill it into everyone's head that a cheaper PS3 is comming, so they should wait and not buy the 60 gig. Interesting.

[kewlkat007]

but they mentioned this in the new Game Informer, and it was not by MS. Unless they know something.

Anyhow we'll see..

[xmod]

I made the same prediction as the Xbox exec.

No Wifi, no card reader, no BC, I called it as well on the official PS3 message board.

http://boardsus.playstation...

[BubblesDAVERAGE]

Even though peter moore left they still wont shutup...

[ERommel]

The internal wifi-card gets alot of grief for not being required. However, if you only have a wired network and your ps3 is hooked into a wired router you are missing out on remote play via the psp. I have to admit that using the wifi to watch movies stored on my ps3 HDD via remote play in the bedroom is pretty sweet. I could see dumping the BC because if you wanna play ps2 games the unit is cheap enough to buy seperatly. I would get the new 80 gb with no BC and leave my ps2 hooked up. Beside can't play guitar hero properly on ps3. PS3 is one hella unit. Glad I got the 60GB instead of the 40GB cause remote play rocks.

[Wolfgang187]

I play guitar heros 1 and 2 just fine and often on my PS3

[ERommel]

that the converter boxes that can be used to play sucked which one do you use and does it allow for the wireless guitar?

[Wolfgang187]

I use the Radio Shack adapter and yes it works for wireless. cant remember which update it was but the ps3 automatically sees the guitar as controller 1 without needing a PS button.

[ERommel]

Thanks Man. Bubbles Up.

[Maddens Raiders]

Exactly, exactly, exactly.

A $300 PS3 right now (bring back the 20G with PS2 trade-in immediately) would be like hitting two 3 pointers back to back before halftime to put the crowd on their feet.

In Marv Albert Voice:

"The PS3 from WAAAYY downtown?? Yes!!!......And it Counts!!!!"

[sajj316]

if there is going to be a 399 model, good. If there isn't, good.

[power of Green]

LOL you Sony fanboys come in here claiming we're missing out on sh*t only you care about lol. Don't even know what a card reader is and the 360's an online console and wireless users are avoided in most cases for obvious reasons.

"Microsoft is up to the same antics again" MS isn't on their 2nd price drop in 8 months matter of fact they would'nt come with a cheesy clearence durring E3 passing it off as a real price drop.

[sajj316]

By the way, I'm wifi for both PS3 and 360. If anything, get more bandwidth for your wifi its such a problem.

Why would Sony fanboys be claiming this when the rumored 399 model is w/o WIFI or BC?

[Maddens Raiders]

Soundwave says: "PS3 Superior, XBox inferior..."

Oh this is too easy. It's all in good fun, but POG this is especially for you:

[sadiq]

I think they should simply put up a new thing on Sony Style where you get to customize your PlayStation 3 to your specifications.

Color: Black, White, or Silver
Integrated WiFi: Yes/No
Emotion Engine: Yes/No (If no is selected your PlayStation 3 will still be backwards compatible through software emulation.)
Hard Drive: 20GB, 40GB, 60GB, 80GB, 100GB, or 120GB
HDMI 1.3 Cable: 3FT, 6FT, 9FT, 15FT, or none.
Free Bonus Game: Resistance or Motorstorm

Edit: Forgot to add HDMI cable.

[sajj316]

And your willing to pay the premium charge for customizing it? Isn't the goal to reduce the price?

[sadiq]

@ 29.1
how will there be more premium charges? plus some ppl dont want certain stuff so it will be cheaper for them, im guessing its simply an assembly line where they are being made and they can go to specific sections for wat they require

[Adamalicious]

I think $399 will be the sweet spot for the PS3, but I don't think they need to downgrade the hardware to get there.

[Maddens Raiders]

they're downgrading the available options, because we know the, less than 1% failure rate hardware, is worth every penny.

[Adamalicious]

Downgrade was probably a poor choice of words. What I mean is that Sony is the best there has ever been in the gaming industry at reducing hardware costs - based on that I don't think it will take them very long to get the 80 gig down to $399. This is assuming that they are trying to move to one SKU only, which I tend to think is for the best. I don't, personally, have any problem with them offering PS3 a la carte - I just don't think it would be the best thing for all the main-streamers out there. So assuming the "choose your own PS3" would only really appeal to the more "hardcore" gamers it would seem to be an unlikely idea as the main difference (affecting price) would be the hard disk which, for any serious gamer, is already really easy to change.

I think that by early next year the 60 will be gone and the 80 will be dropped to $499 (sans Motorstorm) then it will drop to $399 in advance of holiday 08 - maybe even in july/aug.

[Covenant]

Wouldn't surprise me one bit. Makes the system fall closer to what the average consumer will pay, and allows Sony to make up costs through peripherals (wifi dongle, HD cables, etc). Two problems, however, w/that approach:

--Limited backwards compatibility. Yes, you can achieve it through emulation, but didn't Sony once criticize MS for doing just that w/the 360? There are a lot of PS2 owners out there who would love to continue to play God of War or Ratchet and Clank on their new system but might have to wait for an update to play them. (Just like I'm waiting on MS to make my last two Xbox games 360-compatible.)

--Too many SKUs. Let's see: One SKU discontinued, one on its way out, one in the pipe, and now, maybe this? Again, wasn't Sony once critical of MS for its multi-SKU approach?

The question is, what would MS' response be? A $299 Pro, w/ a 10GB HD and a wired controller, w/o the headset and ethernet cable? OR, just get it over with and FINALLY drop the price on the Pro to $299?

What are the odds? I'd say 50/50 on both Sony and MS taking those actions.

[Rhezin]

I'm sticking to 1 console, DOUBLE the money for games if I get two.

[Adamalicious]

I just can't choose between Ratchet (among others) and Mass Effect (among others) - gotta have both! The only console I've been able to resist so far is the Wii and that's only because I can wait to play Zelda, but I'm sure I'll get one before too long.

[M1am1U]

wouldn't MS and Sony be better served to produce less SKUs and focus on getting existing SKUs down to a lower price? Just my opinion, but it's getting really confusing with all these SKUs (or rumored SKUs) floating around. I know it's a little bit different scenario, but it certainly seems to be working for Nintendo. 1 SKU, 1 price, lots of sales. The Core was a flop for MS, and so was the 20Gb for Sony. I can't help but wondering.

[THAMMER1]

Let’s just get some games out here. I have to worry about business models and Customer service at work. I do not want to involve this B.S. in my games hobby too.

I would say to Sony STFU and give up more games. I would say to M$ STFU and give us more games. That is it, and nothing more. All this TALK SHOW fan boys B.S. is getting way out of hand.