Analysis: How PS3's Price Cut May Stave Off Further Market Share Loss

Gamasutra: It had been a full two years since Sony issued an actual price cut to its flagship console. With the introduction of the PS3 Slim model back in August 2009, the price of the system went from $400 to $300. As the company focused on profitability, it has stubbornly stuck to that price and one gets the impression that the current $50 cut was given only grudgingly.

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Optical_Matrix2717d ago

Further marketshare loss? It's sold 1 million more Units than the 360 this year so far worldwide. US is not the only market that counts. Merciful heavens.

darthv722717d ago

sony is wanting the us market to count more considering the long lineage of the first two playstations. They must be thinking why are we not selling as well as we expected?

Strong competition from both nintendo and MS have made sony do things differently this time around. They realized their great name wasnt the only thing needed to sell systems.

It reminds me of when nintendo was sitting pretty until sega and the genesis shook things up. Nintendo had to make changes they didnt plan but it worked out for the better. Sony is doing things as well that are working out for the better.

People hate MS for entering the console market but if it werent for them we would not be getting the best sony could offer.

Persistantthug2717d ago

2009.....PS3 outsold XBOX 360 worldwide

2010.....PS3 outsold XBOX 360 worldwide

2011.....PS3 is OUTSELLING XBOX 360 worldwide

2012.....PS3 will STILL be outselling XBOX 360 worldwide.

Those are the facts, and I'm tired of people trying rig it for their own personal agenda(s).

darthv722717d ago

was that ms would sell so well in light of the power of playstation. Sony has sold well since launch and even though the 360 didnt stop selling all together the competition between the two has lead to some of the best games this gen.

2717d ago
Persistantthug2717d ago (Edited 2717d ago )

Sony's 1ST QUARTER of the year, it doesn't start until APRIL 1.

I'm using ALL of which, PS3 has moved more than 6 million units this year so far.
XBOX in comparison has moved 5 million.

The PS3 has been outselling XBOX 360 year after year after year since 2009 with no deviation.

If you aren't familiar with Sony's Fiscal, then I could see how and why you are confused.

Sony's fiscal year spans from APRIL 1 - MARCH 31, btw.

2716d ago
Persistantthug2716d ago (Edited 2716d ago )

Let's try this 1 more time.

From JAN 2011 to Sept 2011:
-PS3 has moved over 6 million units worldwide.
-XBOX 360 has moved over 5 million units worldwide.

PS3 has outsold the XBOX 360 every CALENDER YEAR starting with 2009, and 2011 looks to be no different.
That's all sir.

2716d ago
+ Show (3) more repliesLast reply 2716d ago
Anon19742717d ago (Edited 2717d ago )

Optical_Matrix said "Further marketshare loss? It's sold 1 million more Units than the 360 this year so far worldwide."

Says who? Official numbers ytd have the 360 ahead by 500k. 4.4 million 360's to 3.9 million PS3's. Please tell me you're not talking VGChartz? When the official data came out, once again it proved VGChartz wasn't even in the ballpark. Their numbers are all over the place. Always have been.

Now, it's not the first time we've seen this. For the first six months of 2009, the 360 had quite a lead as well but a price cut had the PS3 finishing the year over 2 million ahead. There's no doubt the PS3 has been leading the 360 overall worldwide, but that certainly hasn't been the case this year according to numbers from each company.

Who knows though what July-Aug numbers worldwide will look like when they're reported next month. The 360's lead this year came riding the Kinect wave right after Christmas. Last quarter the PS3 was ahead again.

Edit: Look what you've got me doing. I'm agreeing with DK286K. Come on! Give VGChartz a rest.

death2smoochie2717d ago (Edited 2717d ago )

Sony has indeed lost market share this generation.
Things were different the last two generations when Sony had more than 70% of the console market. Now they are in the 30+ percentile. That's a loss.
As for all these numbers?

You people that are SOOO CONCERNED with sales should actually look at the sales numbers released by Sony and MS themselves. Those are the accurate numbers...
When you do this, its a different story altogether
VGCHARTZ is not reliable AT ALL.
If you are using those stats you will be in for a rude awakening.
Just look at MS and Sony's official numbers released (And they have to do this by law) and some of the Sony clan wont be too happy with those numbers...

nycredude2717d ago (Edited 2717d ago )

First of all these fucking articles needs to die already. How come when everyone else drops the price its great thing but Sony does it it's cause they have to or grudgingly does it? I mean maybe they did it cause like it is a sound business decision? holidays around the corner, just shy of several high profile exclusives, and several hd remakes?

Ps3 actually took the longest to even get a price drop. It's not like Nintendo dropping the price of 3ds $80 fucking bucks in less than 6 months!

darthv722717d ago

after the ps3 came out did sony drop the price and then how long until they dropped it again?

Wasn't it something like $100 off roughly 6-8 mos after launch and then they dropped it again?

Just asking.

From a consumer perspective, price drops are not a bad thing. They are extremely good on stimulating the appeal of the item. How much, how soon are other contributing factors.

+ Show (2) more repliesLast reply 2716d ago
Ryo-Hazuki2717d ago

United States = The World according to blind fanboys and analysts

StanLee2717d ago (Edited 2717d ago )

Okay but let's be honest, the PS3 is only competitive because of it's huge sales lead in Japan, a market that is absolutely irrelevant, even to its own game companies and that's a fact. Just look at the video game successes in that region and you'll see why most mainstream releases aren't aimed at Japan or even released there, making the XBox 360's lead in the US significant. The European market is incredibly competitive with both consoles neck and neck but which do you think is more important to publishers and game makers, the PS3's huge lead in Japan or the XBox 360's huge lead in America?

kreate2717d ago

Because of people like u. Xbox is dead in japan.

JOHN_DOH2716d ago (Edited 2716d ago )

The PS3 is only competitive because it leads in Japan? But in the same sentence you say Japan is absolutely irrelevant? Obviously not for SONY. I'm pretty sure PS3 is doing better in asia which is much bigger than just japan.

petko232717d ago

ps3 1.8 million last quarter with earthquakes in japan and PSN hack
x360 1.7 million last quarter with free x360 if you buy pc

ps3 52 million in 4 years=13 million per year
x360 55 million in 5 years=11 million per year

darthv722717d ago

for both platforms. Nothing wrong with that.

Blogz4Fanboys2717d ago

@petko, like darth said, they are both impressive sales figures.. but, sony was pumping out 20+ mil with the ps2, when the xbox was doing 4 or 5mil.

when you look at it from that perspective, you can then take the whole "marketshare" perspective more seriously.

Cupid_Viper_32717d ago

Now as much as I hate to partake in the sales argument, im going to bite this once. A few questions for the author: 1) why would Sony do an aggressive pricecut on a product that is outselling its competitor on global scale?

2) why would sony focus more on the US market when MS is spending millions upon millions of dollars in the US market, to only marginally beat the ps3? I mean, as a gamer the only focus i need from a company is "games" and I get plenty of that from them.

And lastly, to all the guys making references to the ps2 era, you guys are forgetting that the ps2 never hit it strides until it reached the $200.00 pricepoint. And also, MS wasn't as established as they are now and Nintendo wasnt as casual as they are now. To be where they are now, even after a year with no competition, MS had to go to extreme measures, from paying billions to prevent a recall to paying millions for timed exclusives and even millions more to pay for kinect all in the hopes of keeping the US market as a stronghold at the very least. And once again the ps3 still has a faster adoption rate then the Xbox360.

GamersRulz2717d ago

Agree, also don't forget the $600 price tag and the disastrous blue laser diodes that reduced PS3 launch units from 2 million to 500K and that led to postpone Europe launch 9 months.

I believe that if this problem didn't happen PS3 would have passed 360 long ago.

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