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What a 360 Price Cut Means for Wii, PS3

Five top industry analysts have told Next-Gen that they believe an Xbox 360 price drop is not only imminent, but likely required if Microsoft intends to fend off competition from rival PS3.

"We believe Sony will be forced to follow suit [with their own price cut], although we suspect they may wait a little bit," said Arvind Bhatia with Stern Agee. "A price cut sometime between July and September is possible [for PS3]."

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Published: 533 days 22 hours ago | News | PlayStation 3 | Xbox 360 | Wii | Industry News

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Condoleezza Rice - 533 days 22 hours ago

1 - Sony won't be dropping the price anytime soon

Doesn't make sense to do one right now,considering they're topping their direct competitor in sales.

Once the Xbox 360 starts outselling the Playstation 3 worldwide,best believe,Sony will consider a small price cut.But since this may not happen anytime soon,if ever,it's safe to say consumers will have to pay the current asking Price of the Playstation 3 to experience what the Playstation Brand has to offer this round.

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Lifendz - 533 days 22 hours ago

1.1 - I hope they don't

let these 360 guys save up to get a system that gives you as much as the PS3 does.

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iamtehpwn - 533 days 21 hours ago

1.2 - $350

would be a reallllllllllll sweet Price point for PS3.
The Consumers would eat it.

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kwicksandz - 533 days 21 hours ago

1.3 - PS3 needs one

$745 is too much even for the metal gear bundle. Drop it closer to $500 and ill consider it

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KimboSlice - 533 days 20 hours ago

1.4 -

If you read the article completely then you noticed that pachter said that he believes that the 360 cost less than $300 to manufacture ( I agree with that) so that means that even if MS drops the price by $50 the 360 will still be producing a profit, on the other hand Sony can't afford another price drop at the moment because they will loose even more money than they already have.

This will continue to happen through out the entire lifespan of this generation (in other words: Sony will not make a profit off of the ps3 hardware ever!). Even if the ps3 manages to have a larger installed base than the 360, MS will have made more money than Sony.

Either way you look at it, it does'nt look good for sony

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mistertwoturbo - 533 days 19 hours ago

1.5 -

Sony hopefully will follow suit and and drop the price by $50 by holiday season. It can only mean more sales. Then they should try to get down to $299 and then cruise at that price for the next few years.

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The Lazy One - 533 days 16 hours ago

1.6 - I agree mistertwoturbo...

Sony should also start including a rainbow generator in all PS3's to ensure all PS3 owners always have something pretty to look at. Maybe instead of hot air it can start blowing flowers, chocolate and happiness out of it's fans too! Man... looks like sony's got it easy. After they do that just pop it in neutral and coast.

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1.7 MADGameR | 533 days 15 hours ago - User only got 1 bubble - Show

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bigmouth - 533 days 22 hours ago

2 -

i see sony droping the price before the end of the year

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PoSTedUP - 533 days 22 hours ago

2.1 -

i dont, i dont think they'll need to if the 360 dosnt show a major boost in sales.<----thats the only reason sony will drop the price.

and i dont think this price cut will boost 360 sales that much. from what im understanding...

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3 highdro | 533 days 22 hours ago - User only got 1 bubble - Show

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Chris Hansen - 533 days 22 hours ago

4 -

If a price drop really occurs next month, Microsoft better pray the XBOX outsells PS3 in July. Serious gg for 360 if it cant outsell the PS3 at the supposed $299 price point along with more games and better online.

Dateline NBC,
Chris Hansen

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Pedo Bear - 533 days 20 hours ago

4.1 -

Oh Hai guyz! What's going on in this threaaad... Oh @#$%!!!!

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Chris Hansen - 533 days 19 hours ago

4.2 -

@Pedo Bear

Sir, why don't you take a seat, right over there.

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cmrbe - 533 days 22 hours ago

5 - Its a given that MS will drop the price of the x360

Sony on the otherhand will do whatever is necessary to be profitable which means no likely PS3 drop until the end of the year or even next spring depending on how the market responds to the x360 price cut and its impact on PS3 sales. If PS3 sales are adversely affected then expect a PS3 drop sooner than expected.

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Polluted - 533 days 21 hours ago

5.1 -

I don't know if hardware profits are that high on Sony's list of priorities this gen. MS went 6 years in the console business before they turned a profit and now it's paying off. Sony will give us a price cut before Christmas. They spent all last year getting crapped on by MS and Nintendo and I don't think they liked it.

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hotshot127 - 533 days 22 hours ago

6 - all im saying is this......

if microsoft doesnt outsell sony worldwide for the month of july then its a wrap.

sony is shipping those bundles again early in july and that should boost them up the same way it did before.

if anything, sony will use bundles to negate microsofts price advantage. and if microsoft really starts selling, then sony will cut a a small 50 dollars off the price tag which is really all thats needed.

sony has franchises that sold over 10 million copies in 09 so im sure they can return profit and sell consoles purely off of the games recognition

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eagle21 - 533 days 21 hours ago

6.1 - I agree...

100%

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meepmoopmeep - 533 days 21 hours ago

6.2 -

i don't think MS has outsold Sony worldwide in the longest time now, let alone the month of July.

once Sony finds a 360 price cut cutting into it's monthly sales significantly they will follow suit with their own price cut.

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hotshot127 - 533 days 21 hours ago

7 - @eagle. thanks man.

see you on ps3 once 2.4 hits. cant wait....

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eagle21 - 533 days 21 hours ago

7.1 - Oh, no doubt... :)

I saw you on PSN late last night, I was half sleep waiting for 3:00 A.M. eastern time to see if 2.4 was "real". July 2nd bro...

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jcfilth - 533 days 19 hours ago

8 - a 360 price cut means..

that Microsoft is feeling troubled and that Wii and PS3 are stronger.

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mistertwoturbo - 533 days 19 hours ago

8.1 -

No, it just means they are staying competitive. If it means a price cut, it can only be good for the consumers.

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deno - 533 days 19 hours ago

9 - @ bigmouth

How do you see sony dropping the price before the end of the year? They just lost 3 billion and counting. I would not let you be my investor or stock broker pal!!!

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Ashton - 533 days 19 hours ago

9.1 - it's a magic called hardware price reduction

starting from august 08 both cell and RSX graphic crads will shrink which leads to lower costs,,

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karlostomy - 533 days 18 hours ago

9.2 - @ deno: I agree man

@ ashton. Don't be so naive. Sony has been trying to cost reduce the hardware for over 2 years now, but the PS3 is still making a massive loss per console.
proof:
http://www.ps3fanboy.com/20...
(please note the recent date)

If they drop the price in the near future then the benefit of this cost reduction is nullified and will lead to continuing losses on the ps3 balance sheet.

I know that the SDF doesn't want to acknowledge how tough it really is for the playstation this time....

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aiphanes - 533 days 18 hours ago

9.3 - Its 1 billion get your facts straight my friend....

Sony will drop the price...u wanna bet? Microsoft is the one who should drop by $100 by a measily $50...

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yanikins111 - 533 days 14 hours ago

9.4 -

3 billion and growing? Didnt sony recently state that the gaming devision had reduced net losses from 2.8 or soemthing down to 1.8ish? Cant remember the exact numbers but im pretty sure your talking out of your *rse

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10 CallOfWar22 | 533 days 19 hours ago - User only got 1 bubble - Show

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karlostomy - 533 days 18 hours ago

10.1 - I agree with you on most of your points... bubbles

especially about the ps4. Consider the plight of the Sony board: they have to justify the enormous expense of launching the ps3 to the shareholders of the company.

Regardless of wether the ps3 is a good piece of hardware (which it is), Sony MUST make a profit on it. If they don't, then the SONY board will need to assess wether it is a sound business decision to sink all that money on a console and make losses like this:
http://www.gamesindustry.bi...
http://www.ps3fanboy.com/20...
http://www.bloomberg.com/ap...

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yanikins111 - 533 days 14 hours ago

10.2 -

Idiots

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karlostomy - 533 days 6 hours ago

10.3 - Yeh I know yani...

it's easier to keep your head buried deep deep deeeeeep in the sand.

Down there the bad news can't reach you.

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Product - 533 days 18 hours ago

11 -

nintendo wouldnt care it would still outsell it...and sony cant drop there price or they would be ever more in debt from the ps3 then they already are.sony isnt that stupid...xbox just started last holiday season coming up with profits after paying back their debts.You people who back sony dont understand how much debt sony is in and how much money they have put into the ps3 being as powerful and hyped up as you fanboys give it.

while ps3 fanboys gloat about how hardcore their audience is and how powerful their system is fact remains.......the company you would go to bed with, is wetting their pants at the only numbers that matter... their profit numbers

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aiphanes - 533 days 18 hours ago

12 - It is so crazy on this board these days....

We got average joes thinking they are analyist.....Nobody know how much it cost sony to make the current PS3 console...only Sony knows...they might be breaking even right now...they will be definately in september when they have the 65nm RSX chips in the PS3.

Sony will drop the price of the PS3 by at least $50 maybe even $100. They have to...the magic price to sell 1 million units a month for the PS3 is $299.99....sony will be at that price by Christmas.

Anybody want to make a bet? Lets do it.

Sony is in this to dominate...they also got to be thinking about the wii too...the Wii is at $249.99 still...and nintendo will not be dropping the price anytime soon...until the PS3 drops to $299.99.

When the PS3 drops to $299.99 everybody and their mother will be buying a PS3. This is also the bluray sweet price point...and the standalone bluray players will need to drop to $199 or less...which they will after christmas...maybe even before.

My predictions for E3 2008
Sony will annouce a 40 GB PS3 slim with IR port..$299
80 GB at $399
current 40 GBs at $299
PS2 games emulated in a upcomming firmware and available for download on the PSN store.
PSN video store details
God of War 3
Twisted Metal PS3
Wiimote like controller

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The Lazy One - 533 days 16 hours ago

12.1 - @bet

what do I win when you lose?

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Product - 533 days 18 hours ago

13 -

and to the guy above me your crazy if you think sony is breaking even on making the ps3.
here dont believe me believe Forbes cause apparently they dont know anything.
http://www.forbes.com/busin...
that was on 2006
or
http://www.forbes.com/techn...
thats 2008
if sony announces wii remote just what sony fans want least...their system going casual lol..
twisted metal good call that will be announced i think aswell
their hardware will change your suggestions seem well thought out but for some reason i feel asthough they will make a wii remote system without a bluray player in it to cut cost.

im wondering wtf nintendo will annouce though.

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Product - 533 days 18 hours ago

14 -

and get your facts straight it is 3.3 billion not one billion.this is from sony reporting to forbes btw...straight from the horses mouth.

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Expy - 533 days 17 hours ago

15 -

What it means? Nothing really. If you look at both machines, they are two different machines. The names mean a lot to the average joe, the machines differ in what they offer (software excluded, i.e: Blu-Ray Disc vs R.I.P. DVD/HD-DVD). The price drop for the XBOX 360 won't really affect Playstation 3 or Wii sales, all it will do is boost Xbox 360 sales for a short period of time.

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The Lazy One - 533 days 16 hours ago

16 - Does nobody remember who the investors are?

Sony can't just do whatever the hell it wants and still be sitting pretty. They have to make a profit to keep their investors happy. You all say Sony will just answer any price cut M$ makes like it doesn't have to report to anyone. They've got thousands of people ready to take back 50% of their capital if they think it's being used wrong.

I'd hate to know my $10,000 just got spent so they could continue to lose money.

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1stKnighT - 533 days 15 hours ago

17 -

Oh how the mighty has fallen. The ps1 and ps2 made tons of money for Sony. With the 360 pushing Sony around, it looks like the ps3 will never make any profit from hardware sales.

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17.1 yanikins111 | 533 days 14 hours ago - deleted by mod -

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LightningPS3 - 533 days 13 hours ago

18 - LOL at the first post

"Sony won't be dropping the price anytime soon
Doesn't make sense to do one right now,considering they're topping their direct competitor in sales.

Once the Xbox 360 starts outselling the Playstation 3 worldwide,best believe,Sony will consider a small price cut.But since this may not happen anytime soon,if ever,it's safe to say consumers will have to pay the current asking Price of the Playstation 3 to experience what the Playstation Brand has to offer this round."

That's confidence right there. That's the same kind of attitude that got them in trouble. Personally, I don't know how PS3 is even staying in it, when as a gamer, I still feel XBOX 360 has the better games avaliable "right now."

In the future, who knows.

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Product - 533 days 12 hours ago

19 -

yanikins obviously you didnt read the article by forbes...but here.....lets put it like this..the ps2 in its first day in japan sold almost 900,000 ps2's......the ps3 sold 80,000 in its first day...kinda a big difference i would say.
and thats part of the reason why it will take years to make a profit........the sony rep even says it in the article..he says five years to see a profit.

So if you think the ps2 "started slower" you have the IQ of your dogs nuts.

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hotrider12 - 533 days 10 hours ago

20 -

from product

So if you think the ps2 "started slower" you have the IQ of your dogs nuts

now that was fu'king funny haaaaaaaaaa muhaaaaaaaaaaaa haaaaaaaaa

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SL1M DADDY - 533 days 10 hours ago

21 - What does the 360 price cut mean for Sony and Ninty?

Well, I'm sure they will drop their prices too some time or another byt why would Sony or Ninty drop their prices now when they are selling more worldwide than the 360 and have a higher price point? I know that the 40gb PS3 is in many ways less expensive than the 360 with a year of Live but many are buying the 80gb model and that is a bit more than the Premium. All I am saying is why would you drop your price when you are outselling the competition? It makes little sense. Besides, Sony will more than likely drop their price when they go to the smaller GPU this fall. Now that is a theory that makes sense.

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1 Shaka2K6 | 533 days 22 hours ago - User only got 1 bubble - Show

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eagle21 - 533 days 22 hours ago

1.1 - I agree...

Nothing but a slight boost for a few weeks.

If someone couldn't afford a brand new console at $349, how would a $300 refurbished one sound? LOL

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waseem335 - 533 days 21 hours ago

1.2 - what it wud mean...

fckall!!!! what a price drop for the ps3 wud mean? the end of 3fixme

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juuken - 533 days 21 hours ago

1.3 -

Yep, they're desperate! They're trying very hard to drop prices to get them 360's selling!

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GiantEnemyCrab - 533 days 21 hours ago

1.4 -

The first real price cut the 360 has seen and the system is going on 3 years now. That is desperate?

No, desperate is cutting your price in the first year. Nothing like selective memories..

How many times have you Sony Zealots said the 360 is dead? Judgment Day? etc. You ever hear the story about crying wolf? Meanwhile the PS3 has the lowest install base in EU, UK and USA and is the Wii's beotch(so is the 360). The king is dead!

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juuken - 533 days 21 hours ago

1.5 -

Crab, they're clearly desperate.
And they should also be afraid because Sony is catching up very quickly. Sony can be as deadly as a rattlesnake.

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Isaac - 533 days 20 hours ago

1.6 - Giant Crap

"The first real price cut the 360 has seen and the system is going on 3 years now. That is desperate?"

First? Correction: Second.

"No, desperate is cutting your price in the first year. Nothing like selective memories.."

When you're selling the most expensive console in the market by $200, I don't think it is bad to try and be competitive. Desperate is rushing your console and eliminating necessary technologies (like a Hard Drive and a next-gen optical drive) in order to try and beat your adversaries.

"How many times have you Sony Zealots said the 360 is dead? Judgment Day? etc." "

Judgment day? So now everyone is Kaz Hirai. Congratulations, you earned the price for Microsoft Zealot of the day.

"You ever hear the story about crying wolf? Meanwhile the PS3 has the lowest install base in EU, UK and USA and is the Wii's beotch(so is the 360). The king is dead!"

Right, mention the only few markets where 360 isn't 3rd place. Also, don't mention that PS3 came out a year later in America and Asia, and a year and a half later (two holiday seasons later) in the rest of the world.

You must be very proud of yourself by lowering yourself to the standards you hate so much.

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2 theKiller | 533 days 22 hours ago - User only got 1 bubble - Show

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cmrbe - 533 days 21 hours ago

2.1 - If that happens

MS will take Sony to court for being anti-competitive hehe.

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meepmoopmeep - 533 days 21 hours ago

2.2 -

$100? unlikely, Sony is losing $ as it is. They really don't need to do anything until the supposed 360 price cut has a really significant impact to the PS3's monthly sales.

360 dropped in price in EU and didn't do much for them. Sony never followed suit because it didn't have a significant impact on the PS3 sales. The only time Sony will drop the price if they see that it needs to be done.

but by $50 not $100

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3 AssassinXIII | 533 days 21 hours ago - User only got 1 bubble - Show

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Dmack79 - 533 days 21 hours ago

3.1 - lol bubbles for you!

It is absolutely necessary for the 360 to have a price cut if M$ wants to be at a close 3rd instead of a distant 3rd. haha

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RAM MAGNUMS - 533 days 20 hours ago

4 - it means nothing!

just some poor sap that will say "WTF??!!?"
and start searching the Internet for the definition of rrod.
Whoooops!

"they sold me a lemon!"

LOL!
the wii & Sony have nothing too worry about!
juuken don't do it girl!
you save alot of money & hassles even the falcon chip needs to be in midair so it doesn't overheat!
is this the microwave oven you are in the market for?
don't support it! Trust me those games will get the memo sooner or later.

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BigBaehr - 533 days 20 hours ago

5 -

MS will need to do better than just dropping prices and hoping Live will pick up the slack, because the PSN is about to commence a major ass-raping come 2.4.

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OJ_juice - 533 days 19 hours ago

6 -

360 could be reduced to $1, and NO ONE will buy it.

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