PS3 needs a price cut to "remain competitive"

Sony and Kaz Hirai have plenty to think about when it comes to overhauling the company's strategy at all levels. On the gaming front, the company has to prepare for next-gen during a time when it's about to suffer its worst loss in history. It's certainly a fine line to walk.

Read Full Story >>
The story is too old to be commented.
Dante1122431d ago (Edited 2431d ago )

Mmm, I don't think so especially after seeing how well and close the PS3 sold to the 360 in March in the USA( 34k difference between them). Happened in February as well, on a 40K difference. I think the PS3 might actually be leading WW this year.


Edit: @ NYC Gamer

Yeah, that be great for both. A $199 PS3 would hit the sweet spot.

blue7_72431d ago

Yeah it kind of does if it wants to stay competitive. 40k difference is quite significant considering the Xbox 360 has had no price cut for who knows how many years now like 4 plus years or more and the PS3 just recently had a price cut which did almost nothing to it. So still being outsold by it's competitor by 40k when one got a price cut and the other didn't is a big deal.

I know I will get disagree but it's true people tend to forget the PS3 had a price cut that's how insignificant it was people forget it actually had one.

Dante1122431d ago (Edited 2431d ago )

@ Blue

But the PS3 still costs more than the 360, even with it's price cut. The 360's been cheaper for 4 plus years as well lol. For the PS3 to be priced more and only get outsold by 34k (was 40k in Feb) in MS's home territory is pretty good to me. That's why you are probably getting diasgrees.

blue7_72431d ago Show
cynosure2431d ago (Edited 2431d ago )


"But the PS3 still costs more than the 360, even with it's price cut. The 360's been cheaper for 4 years lol. "

So what?
Sony had two generations of success and mind+marketshare
It shouldn't be trailing the 360 period

"Microsoft does not concern us. Microsoft is not a technology company."
- Nobuyuki Idei, Sony chief corporate adviser in an interview with BBC NEWS

"I have no concerns about the competition."
- Phil Harrison, president of Sony Worldwide Studios speaking at the Game Developer Conference

"I don’t think we’re arrogant."
– Phil Harrison, regarding consumer perception of Sony

"It’s probably too cheap…"
– Ken Kutaragi, Regarding the $499 to $599 price point

"A bit pricey."
- Michael Ephraim, Managing Director of Sony Computer Entertainment Australia, speaking about Nintendo Wii in an interview with the


GraveLord2431d ago

PS3 was leading in worldwide sales at this time last year as well. But in the end Microsoft out-shipped Sony. Sales tracking sites show that the PS3 was the best selling console of 2011 to consumers.

On topic: Sure PS3 needs a price cut to stay America. I'd say the 360 is in serious need of a price cut if it wants to outsell the PS3 this year.

ABizzel12431d ago

Does it need a price cut to stay competitive?


Will a price cut help sales?


A $199 price, would probably be enough to finally let the PS3 see a number 1 spot in the US, and possibly number 1 Worldwide for the rest of this generation (Unless we see a $99 360 at the same time).

k-dillinger2431d ago

hey can sum1 tell me what xbox sold ww for the 2011 fiscal year anyone knows because sony hasn't posted for their last quarter yet i wanna compare let me know

insomnium22431d ago (Edited 2431d ago )

No need for a pricecut. X360's wind is dying down. X360 sold good cause of marketting of Kinect. The Kinect fad is dying down as it clearly points out in NPD sales numbers.

If anything X360 needs another ad campaigne to remain above PS3. The difference in sales that X360 gains in a month in USA is offset in a week or two in Japan alone. Europe favours also Sony so unless MS comes up with a hefty pricecut or an ad campaigne this is more than likely going to be the year when PS3 starts leading against X360 in lifetime sales.

You heard it here first folks. You can bookmark this if you want.

miyamoto2431d ago (Edited 2431d ago )

Never trust them sales figures.
These bloggers are just generationg buzz & clicks. same old story. Let Sony run their business. word wars ain't gonna change nothing for Ps3.

TotalHitman2431d ago

America isn't the world Dante...

Look at Japan and the rest of the world. The PS3 is doing fine.

SilentNegotiator2431d ago (Edited 2431d ago )

"40k difference is quite significant"

They were both >330K in sales, so not really. 40K is like, 12% or so of those figures.

Montrealien2431d ago (Edited 2431d ago )

To think that over 6 years into the current console cycle, people are still arguing about this nonsense, is hilarious.

Montrealien2431d ago


It's been proven time and time again that both Sony Nintendo and MS use shipped numbers in their repports.

Thinking Sony alone would be stupid enough to downvalue their stock by simply stating the sales to customers is a fanboys utopic wet dream...

zero_cool2430d ago

No but it could put it over in sales so just look at it that way.

Cheers Gamers & Happy Gaming!

Gamer19822430d ago

The ps3 might be leading WW this year? Its been leading WW for a long time. It's only US its not been leading as for price cut in the UK seems it has got one most stores have already cut it to £160 for 160gb version. That's the same price as the 360 slim 4GB.

+ Show (13) more repliesLast reply 2430d ago
Christopher2431d ago

It does, but it won't matter. Microsoft hasn't dropped its price because it hasn't had to, not because it won't make money on a lower price. If Sony lowers its price, so will Microsoft.

The only thing Sony can do is drop it drastically to a point that will at least match what Microsoft will price their low end console.

If Sony can't compete with the low-end price point of the 360 in the U.S., it will continue to get trampled. And, even with that type of price point, sales likely won't see but a temporary surge but not enough to make that much of a dent in the U.S. Worldwide may be another item.

sikbeta2431d ago (Edited 2431d ago )

No price-cuts before/until Wii-U launch, MS is smart and will block with price-cut, Sony will follow

Megaton2431d ago

Agreed. It needs a cut, but it will have minimal impact anyway. Sony is in a tough spot. They dawdled and made too many missteps for too long and now Microsoft has the "it" console. I don't think the PS3 will ever surpass the 360 in sales, and I have serious doubts about Sony's performance next generation as well.

I think Sony's success next gen hinges entirely on whether or not the network effect created by the 360 will extend to Microsoft's next console. It's Microsoft's game to lose moving forward. Sony will have to continue working to claw their way out of the hole they created for themselves this generation.

lover20122431d ago (Edited 2431d ago )

wow yes mmmmm
ps3 in very tough spot that why the gap is almost closed
now 2.5m
after it was 9m with a year head start for xbox
and it was only 34k behind xbox in xbox home this month
how are the sales of xbox in ps3 home BTW ??

ps3 is doing very amazing job in worldwide and looking at the numbers in NPD it's doing amazing too in US
it does not need a price cut at all
but you guys can say
and beleive what ever help you sleep the night

Christopher2431d ago

@lover2012: The gap being discussed is specific to NA. That gap is about 13M in NA. So, when the analysts say what they think will help Sony to decrease this gap, you can't just throw the logic of the worldwide numbers at them. They're not talking about that. They're keeping it solely to NA numbers.

I agree that Sony makes up for a ton of their losses in Europe and Asia, but that doesn't change the status of sales in NA.

Megaton2431d ago (Edited 2431d ago )

Not to mention that the worldwide gap was down under 1 million in the past. It has been steadily growing for a couple years now as Microsoft dominates the world's largest market.

People like to point to Japan as proof of Sony's success, but Japan is a small fraction of the size of the NA market. Europe is a better sample of success abroad, but it's also significantly smaller than the NA market. Sales in Europe are also typically pretty close between the 360 and PS3.

@cgoodno - It was down to around 500k if I remember correctly. There were articles around here beginning to claim the PS3 had passed the 360 because of it. It was in 2008, I think. The year when Sony was outselling Microsoft in all regions until Q4 (thought to be the result of Microsoft channel stuffing in late 2007).

Christopher2431d ago (Edited 2431d ago )

***Not to mention that the worldwide gap was down under 1 million in the past. It has been steadily growing for a couple years now as Microsoft dominates the world's largest market.***

No, that's not true. Closest it's gotten is to about 3m. It's grown to a max of about 4M since then and has fluctuated between 3.6M and 4M since then. It was never down to 1M, let alone even 2M based on official numbers (who knows with VGChartz numbers, though).

@Megaton: ***It was down to around 500k if I remember correctly. There were articles around here beginning to claim the PS3 had passed the 360 because of it. It was in 2008***

That was only on annual worldwide sales. That was not total console sales since this generation began.

@below: ***so what are you saying is sony should lower the price to close the gap in one region ***

I agree with the analysts that are saying it. I also say that it won't have as drastic of a result as people may think, but it will open up some potential for Sony to increase software sales dramatically, which is where they make most of their money in the first place. Since they are only slightly behind 360 in software sales worldwide, increasing their customer base will only make it so that they can sell even more software to beat 360 at that without having to actually beat them at hardware sales in the U.S.

Gamer30002431d ago (Edited 2431d ago )

"I agree that Sony makes up for a ton of their losses in Europe and Asia, but that doesn't change the status of sales in NA "

so what are you saying is sony should lower the price to close the gap in one region
when they are dooing mighty fine in the rest of the world ????

in japan xbox is dead
can you show me what region ps3 is not selling well in it ???
even in NA it's doing very awesome even when it's the most expensive console
if sony lower the price
to let's say 200 or 199
xbox wouldn't stand a chance

cynosure2431d ago (Edited 2431d ago )


The gap is 3.8 million based on last fiscal reports
The gap was 8 million not 9 million
It wasnt a year head start.
It was Sony launching a year late

Christopher2431d ago

***It wasnt a year head start.
It was Sony launching a year late ***

PS1 - Dec. 1994
PS2 - Mar. 2000
Xbox - Nov. 2001
Xbox 360 - Nov. 2005
PS3 - Nov. 2006

Sony created a 6-year separation between releases. Microsoft only had 4 but hasn't kept up with that.

Either way, both Sony releasing late and Microsoft releasing ahead is a comparative statement making both of them true. You've just chosen to shine a negative light on Sony rather than a positive one on Microsoft.

aaronobst2431d ago Show
insomnium22431d ago (Edited 2431d ago )

My god some of you people must be insane....

Could someone please enlighten me what does it matter that/when/if USA is the biggest market when the difference is only 34k-40k a MONTH between PS3 and X360? In what way is the size of the market even relevant?

I would say purely based on facts that Japan is way more significant market since the difference in sales between these very same consoles is TRIPLE in a month there.

Do you people understand where I'm coming from with this? Are you capable of looking at this subject in an OBJECTIVE manner? 1+1=2 you know.....right? I have no idea how is it even possible to not to see this.

***Yeah but when putting up an article about a system needing a price cut, you have to take all units worldwide into account***

I disagree with that. ***

A pricecut solely in USA would anger other regions so...

Christopher2431d ago (Edited 2431d ago )

***A pricecut solely in USA would anger other regions so...***

i'm fairly certain you understand that a price cut would be worldwide. I also hope you understand that analyzing and discussing the issues of a region happens every day. So, when I say we don't have to take into account world figures, meaning how many are sold outside NA, that's what I mean. I didn't say the price change wouldn't be global. I said, much like how there is an SCEA, you analyze what you need to do to help grow the business in one region as well as them all. And the answer is not always going to be the same from one to another. But, when the answer in one region ends up being a price drop, it will likely affect the other regions as well, even if they don't need it like the region in question.

+ Show (9) more repliesLast reply 2431d ago
showtimefolks2431d ago

well if we are asking sony to cup the price to compete with xbox360 than i feel like that's just stupid, Xbox360 has a killer app called kinect there is no way for sony to compete with that. Sony needs to keep doing what its doing and 34K difference in march and 40K in february doesn't mean much when world wide sony will recover that number and than gain ground.

34K difference covered in japan and than some for sony.

I think sony this time around will wait for MS to drop the price because let's say MS goes to $250 than sony can follow that up with $199 and make bigger news, and with that extra attention they can sell faster

I don't know when people will realize this but xbox360 can stay ahead few million but if end of this gen ps3 is at 110 million and xbox360 is at 113 what's the difference? its about selling well its not a race so if sony can still sell over 100 million ps3's how is that not success. This fanboy war is just between gamers i don't think MS or sony care as much as long as they keep on selling their systems

from the reports next xbox360 will have bluray that means some sort of way some money will go to sony

sony's computers use windows and MS software so they have to pay MS

right now to sony it should be about keep the sales up and making a profit you tell me how they gonna make the profit if the cut another $50?

mcstorm2431d ago

I agree with what you have said and tbh the salws of both the 360 and ps3 are doing well so late on in the gen. Yes sony lost some of the market to ms and nintendo this gen but it could be different next gen too.

For me sony need to drip the price of the psv to get its sales up lake nintendo did with the 3ds before developers decide to drop there support for the poor sales.

Jazz41082431d ago (Edited 2431d ago )

This is the same pattern every year. Usually sony until recently was even outselling 360 in the us at the beginning of the year. Ten when the holiday season hits 360 outsells ps3 worldwide and pushes the gap back up. This has happened so many times I can't believe anyone is even praising sony for only being 38.000 consoles behind for a month in NA where they are 13 million behinf lifetime. Wait till holiday and 360 wll outsell the ps3 ww again. Ribnse and repeat.In response to america being anti ps3 then why don't you add north ameirca to the ever increasing ban list that sony and fas are known for.

cynosure2431d ago (Edited 2426d ago )

@ Gravelord
360 was the number one selling consoles based on fiscal reports directly from the companys.
There is no such thing as over shipping.Everything works off supply and demand

MysticStrummer2431d ago

PS3 has been selling faster than the competition since it launched. Seems pretty competitive to me.

MostJadedGamer2431d ago

Um yes it does, and it has been way overdue. The PS3 SHOULD have been at $199 last E3. The PS3 has been overpriced all the way through this generation, and that is why it is in last place.

There is no point in waiting any longer. Sony MUST drop the PS3 to $199 at E3. There is still time to put up massive sales numbers at $199, but that time window is shrinking.

NeoBasch2431d ago

My thoughts exactly. Nothing major came out here in America this last month, yet it was only behind the 360 by 40K. Microsoft is losing their lead. They definitely don't need to. They're already giving Microsoft a run for their money in their only leading territory. It's quite a turn of events this last couple months have been for Sony.

Now, don't get me wrong. I think Sony should cut the price tag by another $50. If they're smart, they should try and break the camel's back before Halo 4 comes out. This is their chance to take over. They need to overshadow Microsoft's ace in the hole.

This has nothing to do with personal tastes, though. I hope people pick up The Witcher 2. If you don't have a 360, get one. Get one, now! In contrast, I couldn't recommend a PS3 now. I mean, obviously, the back catalog, but besides that. There's not really that much interesting coming out until the end of the year.

Maybe StarHawk, but I'm more pessimistic about that. Don't get me wrong. I love multiplayer and WOWhawk was amazing, but I'm longing for great single-player experiences and I'm not sure StarHawk will deliver that.

sinncross2431d ago

It seems like people are disagreeing with price cutting.

Yeah sure, it is selling at a good pace. But in all honesty, they will want a price cut nevertheless not only to look more competitive, but also with the imminent release of The Wii U, to undercut that somehow.

I think a price cut is best, even if just a small one... does not need to be anything extreme as long as Sony can still profit from it.

crzyjackbauer2431d ago

yeah it seems people are just retarded these days
no to a price cut?
i sold my ps3 last year because it got bored with it
but if you ask me a $199 price tag on a ps3 would make me think twice about getting it again

hiredhelp2431d ago

your right it doesnt need price cut to maintain competitive.
it has free online that in its self is worth the extra cost let alone the rest it offers you.

andibandit2431d ago

PS3 is pretty much doomed if it dosnt get a price cut soon. just look at how bad the vita did

+ Show (7) more repliesLast reply 2430d ago
NYC_Gamer2431d ago

Here's my guess....both 360/PS3 will receive price cuts after E3...

donniebaseball2431d ago

Yeah I think it's likely that both will receive price cuts at some point this year. Both MS and Sony will want to put the pressure on Wii U's launch.

cynosure2431d ago

I agree
360 will definitely get one.It hasn't had one since slim release
PS3 will probably have to follow suit

GodHandDee2431d ago

No it doesn't. It's currently handily outselling the 360 and wii in Europe and Japan. And is also very close to 360 in NA.

Christopher2431d ago

This article is specific to NA. The analysts are from NA and the sales being noted are for NA.

Snookies122431d ago

Yeah but when putting up an article about a system needing a price cut, you have to take all units worldwide into account. A system would not be getting a price cut just because it's behind in one region.

GodHandDee2431d ago

damn man you have so many bubbles 0_0

But like I said they are slightly behind 360 and selling almost twice as much as the wii in NA. This is while dominating in other regions. I doubt sony are unhappy with the situation. They are in a good state sales wise

Christopher2431d ago

***Yeah but when putting up an article about a system needing a price cut, you have to take all units worldwide into account***

I disagree with that. The concept is based on a large market as identified by the region. When looking to see what would make changes to it, many of those have been covered.

It used to be, PS3 needs games. It's got games. Tons of them. Exclusives included. That didn't change the trend in NA.

It was then features. Well, it has those as well, including an alternative game subscription option, video watching (tons of options here), video editing, MMOs, etc. That didn't change the trend in NA.

So, what else is there that could be done to increase PS3 sales in NA? More games? That didn't really work in the first place. More features? They have to do that already just to keep up with Microsoft, a software company known for integrating everything they can get their hands on into their OS.

In all honesty, price is key. Will it affect worldwide pricing as well? Yup, but it still is what is needed in NA to make a change. Does it mean that the pricing shouldn't reflect a global initiative? No, but it's the one thing they can do to increase potential in sales in NA since they've tried everything else.

Well, everything other than putting out a new console with better capabilities but with a reasonable price tag.

kreate2431d ago (Edited 2431d ago )


perhaps a 500m dollar advertising may do the trick?

Or is america just anti-ps3?

lover20122431d ago

1) would you plz add NA in the title bec this is so misleading

2) again looking at the numbers from NPD
Ps3 was only 30K behind xbox
Ps3 331k
xbox 371K
it almost neck and neck in NA
and you need to take WW units into account
where ps3 is leading the sales
not just one region that ps3 is behind by only 30K

that's like saying xbox need a pice cut to "remain competitive" in japan

Christopher2431d ago (Edited 2431d ago )

***not just one region that ps3 is behind by only 30K ***

Behind in 30k sales for a single month. That's 360k a year if you ignore that the variance is a percentage amount (not a flat number) that increases in difference during major game releases and Holiday seasons.. Meaning they are continually losing ground.

So, if 360 has 36m in NA and PS3 has 23M, that disparity is only going to continue to increase. They are saying a price decrease is what they think is needed in order to reduce the chance of that happening.

***that's like saying xbox need a pice cut to "remain competitive" in japan***

Please don't tell me you believe that. There are 7x as many PS3s sold in Japan as 360s. There are only a little more than 33% more 360s sold in U.S. than PS3s. The percentage of difference is slightly different so as to make them incomparable.

***perhaps a 500m dollar advertising may do the trick? ***

Only if they were doing along with a new concept similar to Kinect. Otherwise, they'd be wasting money on trying to get people to buy the same thing from the last 5+ years.

***Or is america just anti-ps3?***

Obviously they're not anti-PS3, they just prefer the 360.

kreate2431d ago (Edited 2431d ago )

"Does it mean that the pricing shouldn't reflect a global initiative? No, but it's the one thing they can do to increase potential in sales in NA since they've tried everything else."

it almost sounds like they tried everything else except a price cut. to my knowledge, didnt they price cut the PS3 already?

not too long ago it use to be 300 got down to 250.

obviously america isnt particularly anti-ps3 but if that's the case, what is it with america not buying ps3?

im sorry if im being nit-picky here but im sure sony is asking themself the same question.


"Obviously they're not anti-PS3, they just prefer the 360."

in other words, they are anti-ps3 .... -_-;;

dcbronco2431d ago (Edited 2431d ago )


Missed the articles on Sony's financial situation, huh.

There is a reason that Sony doesn't advertise much.

Christopher2431d ago (Edited 2431d ago )

***obviously america isnt particularly anti-ps3 but if that's the case, what is it with america not buying ps3?***

Microsoft owns NA when it comes to marketing. Sony doesn't have enough money to compete with the billions upon billions of dollars that Microsoft puts into marketing all of their products.

Most AAA multiplatform titles get the 360 swoosh at the end of their trailers in NA. Massive games get timed exclusives or special features (Skyrim is timed, CoD is timed, ME3 was Kinect, etc.). Even FFXIII and FFXIII-2 in NA had the 360 swoosh in the trailers. Still sold more on PS3, but they put a ton of money into that to take away a big chunk of sales from the PS3.

And these are all 'marketing' elements that we don't see like we did the $500m Kinect marketing over a 4 month period.

Sony did get it with Bioshock: Infinite. They also got it with MoH, and Dead Space 2, kind of, but they were weak and not major sellers. Microsoft gets them with the major releases.

***in other words, they are anti-ps3 .... -_-;;***

Anti means to be opposed to or against. Having a preference doesn't make you opposed to the other product, just means you prefer one over the other. I'm not opposed to seafood just because I prefer chicken over it.


***so basically, its not even about the price drop, its about marketing...***

How can it be about the marketing if they can't afford it? The option is drop the price or do nothing. There is no other option considering they can't make money when they are losing it.

It's about the price drop. If the price doesn't drop, they can't increase sales, they can't then increase marketing funds.

kreate2431d ago (Edited 2431d ago )


yea they got no money, but thats no money now, they weren't always broke. they even sold 5% of the shares a while back to use that revenue for the ps3 and other products


so basically, its not even about the price drop, its about marketing...


"It's about the price drop. If the price doesn't drop, they can't increase sales, they can't then increase marketing funds. "

yea i totally agree.
just some points to think about was that, is a price cut going to really be that significant? may or may not be.

what if ps3 goes down to 199 and MS decides to lower the xbox to 149? and nintendo decides to lower the wii to 49?

what if its just a temporary boost in sales than the sales go back to normal?

now u got the same amount of sales but with less money coming back.

all they did was somewhat encourage the competitor's to lower their price.

so lets say with the money they made. they're going to market the same as before. what's to change? subway? 7-11? maybe now its mcdonalds?

who knows...

even if sony is broke doesnt mean they lost all hopes of getting money from elsewhere. i mean they're a big company with a good name.

they can always borrow more or just get more investors to join or ask the current board for more money to market their stuff to increase sales.

its all just speculation we'll just have to wait and see. hypothetical. im not disagreeing with u im just asking what ur thoughts were.

+ Show (7) more repliesLast reply 2431d ago
blue7_72431d ago

You do realize people like you said that last year that the Xbox 360 only sells in the US and then the year finished and everyone found out the Xbox 360 was the best selling console worldwide not just in the US. Just saying.

cyclonus0072431d ago (Edited 2431d ago )

MS was lagging behind Sony worldwide for most of last year until the holiday season surge that put Xbox over the top.

And where did that surge come from?

North America.

jetlian2431d ago

what difference does it make? You dont even know what EU numbers are

dcbronco2431d ago


Sony didn't suddenly become broke. Howard Stringer warned company execs for years that they needed to make changes. They refused to listen to him. Sony hasn't made a profit company wide in over four years. And they have had losses in gaming since 2005. Development of the PS3 put them in a whole long ago. It has changed the last year or two for gaming. But there has been a shortage of money in the gaming section for sometime.

And despite what people think companies can't just spend no matter what. Sony advertised heavily at the launch of the PS3. Even gave away free TVs. But eventually money had to be cut to offset the losses on hardware and advertising is always a good area to start.

The Playstation name is already out there as evidenced by the number of disagrees of any perceived negative Sony comments. But Sony already has those people. The things needed to get others aren't commercials. They are price cuts. So you skip the commercials.

smashcrashbash2431d ago (Edited 2431d ago )

It's amazing how everyone is always telling Sony what to do as if they are some newbies to the industry, the same people that chanted the PS3 would have been dead by now.

cynosure2431d ago

"RW Baird analyst Colin Sebastian weighs in on Sony's situation"

Analysts are paid to you know analyse things...
Nobody's telling Sony what to do

Statix2431d ago (Edited 2431d ago )

Yes, but many of these analysts don't seem to be particularly knowledgeable or insightful with their analyses. It seems short-sighted to say that Sony needs a pricecut to remain competitive, when they've already been more than competitive for the past several years. I don't see them trending out of "competitiveness" in the foreseeable future.

If these analysts are only focusing on North American sales, then that is even more short-sighted of them.

I think it's far more critical for Sony's longterm success that Sony starts focusing all their efforts to ensure that the next-generation PS4/Orbis is a success... This is far more important than a PS3 price drop late in the lifecycle just to try to sell a couple thousand more consoles per month in one region (North America).

BitbyDeath2431d ago

Pricecut announcements are also great times to announce new consoles.