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Gamasutra - Sony Unconcerned About Xbox 360 Price Cuts

Microsoft's recent move to reduce Xbox 360 prices across the board may turn out to be especially significant for the console wars. It means that for the key holiday season, the mass-market Xbox 360 Arcade SKU is less expensive than the Wii -- and Wii may see additional challenges from supply constraints. And with both consoles now entering the $200 "inflection point" analysts say has historically helped spread console sales to new audiences, has Xbox 360 opened a competitive gulf over the PlayStation 3?

Wedbush Morgan analyst Michael Pachter tells Gamasutra that, with a little help from correct marketing, Xbox 360 sales stand to lift 20 percent in the Fall-Holiday season over the same period last year. The $199 Arcade SKU in particular is expected to attract more mainstream consumers who are primarily interested in major brand names like EA Sports titles and Tony Hawk.
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Sony Expresses Zero Concern... - ps3.thegamereviews.com | By: Relin
harry190 - contributor
Published: 489 days 18 hours ago | Article | PlayStation 3 | Xbox 360 | Wii | Industry News
 
 

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Hellsvacancy - 489 days 19 hours ago
1 - Sony hav nothin to worry about
The Ps3 is sellin more than the 360 in almost all territories and it costs twice as much and with such great exclusives on the way theres not much need 4 Sony to worry....

But wot do i know?
1.1 GametimeUK | 489 days 18 hours ago - User only got 1 bubble - Show
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Jamie Foxx - 489 days 17 hours ago
1.2 - CONSUMERS DONT KNOW
the ps3 is better value for money ive never seen sony advertise its advantages over the competition like ps3 has-wifi,bluray,bluray games,bluetooth,internet browsing,free online,changable 2.5 harddrives, etc

many parents just see the ps3 and 360 as equal ive even read that some people who have a ps3 didnt even know it could play bluray movies!!

yes the ps3 is better value for money,has much untapped potential but the consumers dont know that they just see price and with many parents on a tight budget due to the recession sony need to get the ps3 advantages across to justify the higher price tag.
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The gaming GOD - 489 days 17 hours ago
1.3 - Are you serious GametimeUK ?
You said the 360 paved the way for the ps3 and MS already "knows they won"? Being first out doesn't mean they paved the way. Paving a way is building a history and reputation. So no my friend, Sony paved its OWN way with the ps3

Please tell me how you figured that out. And if they were so sure they "won", they wouldn't bother lowering the price.

No matter what you say, these price cuts aren't for the "benefit of the customer". They are reactions to the ps3 consistently outselling them this year.

"Give Sony more to copy?" Do you HONESTLY want to compare which company is original and which one isn't. Sony has more original ideas than MS EVER had

And I'll be frank, if this new wave of price cuts doesn't help MS outsell the ps3, then all they have left is to wait for the inevitable of the ps3 overtaking them.
1.4 thenickel | 489 days 17 hours ago - User only got 1 bubble - Show
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TheTwelve - 489 days 16 hours ago
1.5 - I find it odd...
...that despite the pricepoint, the 360 is still selling like doodoo on amazon. Now, while I realize that amazon is no true measure of universal sales, I did expect it to at least bump up.

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UltimateIdiot911 - 489 days 16 hours ago
1.6 - @TheTwelve
I thought there are more Sony supports on Amazon.com. I could be wrong. I say word of the mouth is the best way to get sales. I recommended the PS3 to a few of my friends and convinced them to get it. I've made recommendation to parents on gaming and they listen.
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Some_One_Plays - 489 days 16 hours ago
1.7 - thenickel
lol, so you're saying you don't like free online, a blu-ray player, WiFi, bluetooth technology, four USB ports, memory stick slots, PlayStation Home, and whatever else I forgot?

The sadest thing about the XBOX 360 is that most of the disc based games don't run in HD (High Defintion). It's like what's the whole point of the HDMI (High-Definition Multimedia Interface) port?
1.8 thenickel | 489 days 16 hours ago - User only got 1 bubble - Show
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Figboy - 489 days 15 hours ago
1.9 - The Twelve:
you said "doodoo," which instantly makes me think of Dave Chappelle, which instantly makes me smile, then chuckle, then remember that classic Tupac skit, which makes me laugh out loud.

thank you.

anyway, on topic, i don't see why Sony would be too concerned;

1) their console IS better value for money, and they are subtly advertising it in fairly interesting ways (such as the Tropic Thunder plug where the guys says "and every Playstation 3 has a built in Blu Ray player...")

2) their fall and winter 2008 lineup is looking FANTASTIC, and if a consumer chooses a PS3 over a 360, all the worthwhile 3rd party titles are ALSO coming to the PS3 (ie, Fallout 3, Mirror's Edge, etc).

3) the PSN is really gaining steam in terms of online performance (which it already had, but has improved by leaps and bounds), AND by game choices. Crash Commandos, flower, Savage Moon, Wipeout HD, Burnout Paradise, Fat Princess, the PSN is it's own beast, very different from what LIVE is, and that's a GOOD thing. they don't have to be exactly the same to be worthwhile services to their respective markets.

4) the PS3 has been summarily outselling the 360 worldwide all year. even at a price point more than $100 over the 360.

5) if need be, Sony will drop the PS3 by $50 just in time for the holidays.

i mean, you don't have to be the most informed consumer to see:

"Xbox 360 Arcade at $200. nice!"

"but wait, i need a hard drive so i can download games and movies. $150 for a 120gig hdd? okay, sure."

"oh yeah, my console is too far away from my router, and i can't find a cord long enough, i guess i need to buy the wi fi router. $100? um, okay. total is $450"

"man, i forgot, i need to get a LIVE subscription so i can play online with my other 360 owning friends. that's another $50 to my total, so, $500."

but then, there's the Playstation 3:

"hmm, it's $400. that's a lot. but it comes with built in Wi Fi, a built in 80gig HDD, that should be enough for some movies and games and music. AND it has a built in Blu Ray player? AND i can play online with my friends for free? all for $400? that's not too bad. sold."

you don't even have to mention the web browser, or Trophies, or HOME, or any of that stuff.

the fact that it comes with Wi Fi and a Blu Ray player are a combined $500 or more value ALONE, not even mentioning the game console part.

i have an HDTV. if i wanted to enjoy HD games and HD movies on my HDTV, i could opt for an Xbox 360. but then i'd still have to buy a dedicated HD movie player, and the only surviving format is Blu Ray. add an additional $300-$400 to the cost of my 360. say i get the Elite, that's $350? so $750 for gaming and movie needs?

OR, i could just buy a Playstation 3, because it's a games console AND an HD movie player in one package. at the most, i'm spending $500 (if i get a bundle deal). which saves me $250 i can spend on games and movies.

i agree that Sony does need to push it's advantages over the 360 more, and definitely push the Blu Ray movie/games advantage, the free online advantage, and even the built in Wi Fi and web browser advantage.

of course, Sony isn't STUPID. just about every game they are releasing this year and next has some sort of online component, so they will naturally begin pimping the PSN more, now that it has more software to back it up.

i mean, honestly, outside of Resistance, Motorstorm, and Warhawk, what do they REALLY have that's pushing the network in a direction the casual consumers will relate too?

but Little Big Planet, and HOME could certainly pique their interest. to name only two known products.
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NoahFex - 489 days 15 hours ago
1.10 - @ the_gaming_GOD regarding 1.3
"Being first out doesn't mean they paved the way. Paving a way is building a history and reputation."

BINGO! With Microsoft it seems they feel they need to be "first out." They have pretty much reached their potential with the Xbox 360 and I would not be suprised that within 2 years, the Xbox 720 will be hitting the stores, because they won't be able to keep up with the PS3 (which is just scratching the surface of it's potential).

Releasing a brand new system to compensate for the things they should have included in the Xbox 360 will do nothing to create a loyal fanbase and reputation. It will only alienate those 360 owners who spent a lot of money on a next-gen system only to have Microsoft ditch them and focus their efforts on a whole new system all together. This is much like what SEGA did with the transition from the Saturn to the SEGA Dreamcast...and we all know where SEGA is nowdays. Yep, strictly a software company. Which Microsoft started out as and should probably go back to. They should leave the business of making consoles to Nintendo and Sony.

Will Sony release the PS4 before the end of the PS3's "10 year cycle"? Of course, but just as with the PS2, it won't forget about it's previous loyal customers and will continue to support the people who invested in the PS3 with games, features, etc. Will Microsoft do the same with the 360 after they release the 720? If the original Xbox is any indicator, the answer is no. How is that building a repuatation?
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xhairs9 - 489 days 15 hours ago
1.11 -
The last time I listened to one of these "Analysts" they were wrong. And then again, they were wrong, and again wrong, again and again they keep predicting inaccurately.
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power of Green - 489 days 14 hours ago
1.12 -
I remember hearing the same sh*t before Sony yanked hardware out of the PS3 after lower the price in several different ways.
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SL1M DADDY - 489 days 11 hours ago
1.13 - lol GametimeUK
Really, you just need to stop. Your killing me!

In reality here folks, why would they worry? They have made it through some of the worste media scrutiny of any console durring it's first few launch months and now they are getting tons of praise from tose same journalists and they are keeping their momentum up. What's to worry about?
1.14 Spydiggity | 489 days 10 hours ago - User only got 1 bubble - Show
1.15 CommonSense | 489 days 7 hours ago - User only got 1 bubble - Show
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creeping judas - 489 days 18 hours ago
2 - as long as
both consoles sell well im will not be concerned, not do i care who is victorious.
with this type of competition between the two consoles, it forces each console to innovate to keep ahead. and innovation is good for both sides.
you see sony/ms fan boys, by having good sales for both consoles is good for each other. youll benefit from the other.
Imagine a one console world run by sony/ms, the games would be crap, the price would be what it should be in order for the company to make profit,so were talking $800 plus.

embrace the three console world, play games on your console of choice and enjoy. dont worry what the other gamers are doing.
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ernsttco - 489 days 17 hours ago
2.1 - Wow
People are actually disagreeing with this guy. This proves that you guys who come to this site to argue for companies that only give a damn about your money are current and future 40 year old virgins.
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ukilnme - 489 days 15 hours ago
2.2 -
Nothing but the truth. Bubbles to the both of you.
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xhairs9 - 489 days 15 hours ago
2.3 - @Ern
I don't believe they disagreed on purpose, when articles are first posted people tend to hit agree/disagree and it shoots down to the newest comment (if one was posted before you refreshed your page). So it could just be some people disagreed above him and it shot down to this guy, seeing as there are only 2 I feel that this is what truly happened.
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ThePeoplesChamp - 489 days 18 hours ago
3 -
why would they be worried when their console has been at a higher price and outsold the 360? if sony were to drop the price of a lower end model ps3 to $199 then the 360 would be no more. but in all fairness this is going to benefit us gamers so much more because if 360 sales take off and stay up then sony will have to respond making all of those that dont have a ps3 able to afford one.
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Jeff222 - 489 days 18 hours ago
4 -
PS3 FTW

I agree completely with the statement:
"We're really confident that consumers are making choices driven by value"
PS3 is the better value, the HUGE advantage is obviously the Blu-ray player built into the console.

The games that are coming out for the PS3 are looking nicer and nicer (drake's fortune) I can only see better things coming out of this console since it is still not using the full power of its processors

With the 360 buyers have to be worried so much of the RROD and well to me personally not very good games. Halo and Gears were pretty good but you can't buy a system just for 2 games.

PS3 also has the PSN, (which is free) lets you try games out before committing to a rental or even a purchase. I really have no problems with lag or anything in my account so I really don't see why XBOX Live charges you for the same quality of service
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jumboplay - 489 days 17 hours ago
5 -
It's so weird thinking that the PlayStation isn't the #1 system. It's been the top seller since 1995. Shows that anyone can sneak in and win!
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chrisnick - 489 days 17 hours ago
5.1 - ......
or buy their way into the #2 spot
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Common Sense - 489 days 17 hours ago
5.2 - It will be
as soon as the PS3 hits $200.

Imagine what would happen if Sony does a $200 price drop before Christmas. I bet you that it will double Wii sales.
5.3 krakdol | 489 days 16 hours ago - User only got 1 bubble - Show
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dan-boy - 489 days 11 hours ago
5.4 - krakdol
you've been taking smoking to much crack me thinks. sony selling more since 2007??? the wii has been tearing sony a new arse since launch! the more comments i read on this site from the twisted sony fanboys, the more it i think that they are just hating the fact that their beloved sony is struggling.

and after a decade of domination, and an incredible brand, sony are barely beating the 360 worlwide on monthly sales. i know the sony fanboys hate to face the truth, but sony have fallen this gen. nintendo will take the crown, whilst sony will sit behind microsoft for another year atleast. poor sony! if they sell 60mil ps3's it will be a miracle....and they wont be reaching that figure for another 4 years atleast.
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nos4speed - 489 days 17 hours ago
6 - -
Its all about value for money and thats exactly what you get with the PS3. You can just see a mother at xmas......child"I want a games machine"....Husband" I want a blu ray player".....Older child"I want somewere to download and store music and videos"......PS3 TO THE RESCUE!
6.1 Bladestar | 489 days 16 hours ago - User only got 1 bubble - Show
6.2 krakdol | 489 days 16 hours ago - User only got 1 bubble - Show
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ceedubya9 - 489 days 17 hours ago
7 - Of course not
It just started. They are not concerned right now. If PS3 sales start to slow to a crawl because of this though, THEN they will be concerned. But, we will just have to wait and see what happens. We should have a good idea of how this will all turn out by the end of December.
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TheTwelve - 489 days 16 hours ago
7.1 -
Neither Nintendo nor Sony need to do a thing until this new pricepoint proves itself. Wait and see.

12
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NipGrip - 489 days 15 hours ago
7.2 - ^^^^
You are exactly right. Nintendo and the PS3 are SELLING MORE THAN THE 360. So of course they aren't scared, nor do they have to lower the prices. Supply and demand folks. When your product isn't selling you.. Yes, that's right, lower the prices. It's not selling. It's dead, Jim.

Until the Wii and PS3 sales themselves slow, regardless of what the 360 does, they have zero reason to decrease costs. Even Sony knows those folks buying the 360's at a cheap cost are like the folks buying $99 HDDVD players. You're buying into a dead format and wasting your money, but hey.. There's no telling XBOTS. They didn't learn after the HDDVD debacle and never will.
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ceedubya9 - 489 days 14 hours ago
7.3 - That's a bad comparison
You can't compare HD DVD to a 360. One is truly a format on its death bead, while one is a console that has slowed in sales but still maintains healthy software totals.

The 360 isn't selling horribly. Its only selling a bit less than Sony's PS3, and Nintendo is destroying them both. But to compare the 360 to the HD DVD format is just off.
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NipGrip - 489 days 13 hours ago
7.4 - Really?
So when the HD-DVD players dropped to $99 people weren't heralding it as also a good thing that was going to be a knockout punch to BR? I seem to remember many thinking this was the case despite MANY others saying HD-DVD was dying and on it's last leg. Denial was in full effect from 360 owners until a month later and it was dead. But until then, they were VERY adamant about HD-DVD.

Now, no. They are not the exact same, but don't herald a price drop in and of itself as being the thing that's going to finally resurface 360 sales over PS3 sales. That price drop has alot of competition in the form of great exclusives and everything else the PS3 has to offer. A price drop alone does not indicate better sales. The GameCube did not benefit from it. Nor did the Dreamcast. Nor did HD-DVD. The fact Nintendo isn't scared and dropping to $200 yet should be a BIG sign that MS and the 360 are both in dire straights with the system and unable to hold off the inevitable PS3 onslaught as well as they had thought. Sure, the 360 is selling, but nowhere near what it should be given everything that is touted about it and it's head start.

Let me restate. The 360 being cheaper than the Wii, which wasn't even considered a next-gen system by XBOTS should just be embarassing. Isn't that all they gave the Wii was it's price point as to why it was selling like hotcakes? "Oh it's only selling because it's cheap." Yeah.. We'll see how that works out for the 360 and if that "lower prices == CRAZY SALES" mentality works out.
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Death - 489 days 8 hours ago
7.5 - Blu-Ray didn't win for the reasons you think.
Dedicated HD-DVD players out sold Blu-Ray players by a very large margin. The PS3 increased the potential customer base for Blu-Ray to the point where the movie companies took notice. They knew that prolonging picking a standard wouldn't do anything but hurt them all in the long run. The decision was made to pick one standard and Blu-Ray was it since it has the largest potential customer base. Even with 10 times the amount of players in customers homes, Blu-Ray was lucky to outsell HD-DVD releases 2 to 1.

Personally I would prefer to have a hard based copy of the movies I own, so Blu-Ray is my preferred choice today. With that said I believe digital distribution will be the logical choice in the future. Blu-Ray will still have it's uses, but not exactly how most people invisioned it.

Lastly, the PS3 is only a better value if it has the features you are looking for. If you have a wi-fi network and want to play Blu-Ray movies, it is definately a good value. If these features are not imoprtant to you and you only want to play Madden or Grand Theft Auto, an Xbox 360 Arcade for $199 might be a better value to you.

-Death
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meepmoopmeep - 489 days 17 hours ago
8 -
does this have any relation to the name change of Afrika to Hakuna Matata?
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DJ - 489 days 17 hours ago
9 - Yeah, unless the 360 suddenly takes 2nd place again
In monthly sales for a long period of time, Sony doesn't have any reason to worry.
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jmare - 489 days 17 hours ago
10 -
Sony has good reason to be confident; They are outselling a lower-priced competitor in direct competition with them. I do think that a price cut would help them. Not all the way down to $199, but if they dropped it to $299 it would go a long way to improving sales. Also a renewed ad campaign playing up all the capabilities of the PS3 would help, plus an emphasis on LBP would help at fall.
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Saigon - 489 days 17 hours ago
11 - expected....
I don't expect them to be concerned, they have every right...either way I have a feeling Sony will team up with Walmart and Best buy again and offer the $100 gift card deal again...
12 Bladestar | 489 days 17 hours ago - User only got 1 bubble - Show
12.1 cahill | 489 days 17 hours ago - User only got 1 bubble - Show
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twoface - 489 days 16 hours ago
12.2 -
Actually it's not about Sony ignoring MS. It's more about positioning. Sony seems to position themselves as a lifestyle product targeting (I believe) people in the 20s or older, whereas MS positioning is mainly a gaming machine.
Sony's strategy seems based on a 3-prong approach - movies, games and lifestyle (HOME and MMOs). It is a good bet for success in normal times, but at the present economical situation, the end result is anyone's guess. Regardless, you do not easily change your positioning once you fixed it. If Sony does, I think it will be more of a response to the economical situation rather than MS, as Sony's target market is different from MS.
As to why MS keeps targeting Sony, I can say I am clueless..
12.3 thenickel | 489 days 15 hours ago - User only got 1 bubble - Show
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twoface - 489 days 14 hours ago
12.5 - @thenickel
Well, I could be wrong (it happens you know), but my perception is Sony started out with this intention all along with the risks it was taking on blu-ray. Whereas MS seems more like responding to competition with HD-DVD as add-ons and such. If you ask me, Sony started with a clear focus in mind, whereas MS seems targeting everything in its path.

Again it's just my perception, could be biased in some sense due to my dislike of i-demand-to-have-everything kind of strategy adopted by you-know-who
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dan-boy - 489 days 11 hours ago
12.6 - cahill
do everyone a favour. find the tallest tower block in your town, go to the top floor, and throw yourself from a window. that will be better, and you wont be missed. also, it will save you the pain of being a 40 yearold virgin aswell.
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dizlaoboi916 - 489 days 16 hours ago
13 - ha
do people realize what there buying with that 199.99 price tag, u still need to buy a battery pack, a hard drive, wifi adapter if you wanna go that route, add it up and your still buying more then before the price cut, i hated the fact that when i bought my premium at launch for 399.99 i needed to buy a battery pack and a wifi adapter just to do what the ps3 did out the box at its launch, the impulse buyer will see the 199.99 price tag and just be pissed off later that he or she still had to spend more money on accesorys, this article says americans will buy anything as long as its cheaper then the next one regardless of quality,
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DJ - 489 days 16 hours ago
13.1 - And a lot of them ask around before they buy.
"Hey, what's the 360 like?" And more often than not, there's a lot of drawbacks stated.
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blusoops - 489 days 16 hours ago
13.2 - @ 13
You forgot the ability to play HD movies. Last year, when the 360 was $399 you also had the option of buying HD DVD add on for another $179. On top of all the accessories you just mentioned and it turned out to be a loosing format! Plus not to mention $50 a yr for online play!!! I just can't understand how people can't see that logic or can't think about the long run.
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