What is Microsoft's Next Move against Sony?

What's Next? If rumors are true then Microsoft is ready to drop the price on their 60 GB model to $249 at the same time as Sony drops their lower end model to $299. I say lower end and not 80 GB model, because Sony is making moves...

[Zeus Lee]

More Halo seems to be their move.They're going to quickly realize they need a significantly better 1st party lineup.

[sonarus]

When all else fails...price cui

[MasFlowKiller]

Price cut simple as that, i wish they could show us some of their 09 lineup but i guess we will have to wait until e3

[caladbolg777]

Probably from 2nd to 3rd in the console race. Oooooooooooooooooo burn. I kid. I kid.

But in all seriousness, I'd buy a 360 if the price was right. I've got my eye on the Elite model. Sadly, I can't justify purchasing one at the current price point. My PC and PS3 seem to cover almost all of my bases save for a few choice exclusives.

I hold no loyalties to any side. For me, it's all about cost VS value and at this time the price of a 360 may be lower than the competitors, but the value is seriously lacking.

[Blaze929]

I can almost guarantee Microsoft will drop the price of the 360 once the PS3 cut happens 'just becuase' they can. Like no reason will be behind it but they will do it just becuase.

With the games, what exclusives are there really? Thing about Microsoft now is that they dont announce games unless they plan to release it the same year or shortly after, unlike Sony. So they probably have a great lineup, just waiting to be unleashed this E3...that or more PS3 exclusives now on the 360.

[Monchichi025]

Someone PLEASE start a petition to get him kicked off of N4G. Guy is ruining game journalism!

[jaysquared]

$249?? you can get a 60gb 360 right now with Endwar for $239 at dell...

http://accessories.us.dell....

[QuackPot]

But it's unlikely to happen anytime, soon. They had plenty of time to put together a better line of 1st party exclusives. Now relying mainly on 3rd party and a handful of stalwarts.

MS should just cut their losses and focus on the 720 or make as much as they can this generation to pull out of consoles completely.

Why?

The $249 Ps3 is coming and the great Ps2 migration to the Ps3 has not begun yet.

[Danja]

I can't see M$ cutting the price of the 360..b4 summer...atleast..

they need to focus on getting exclusive games to there fanbase and stop worrying about trying to stay ahead of the PS3...

[Powertesties]

They have many unannounced titles and a killer network. They do need to start showing what they have up their sleeves. Either way, 2009, just as the previous years, is the year of the Xbox.

Sony has some good looking titles as well. Having played through Killzone 2 it is amazing but not the 360 killer I was expecting. It does look amazing though....but nothing the 360 couldn't handle.

Not flaming here people so don't start that stuff.

Maturity please!

[Arnon]

You guys realize that the only people who are worried about first party exclusives are the people on N4G correct?.. I mean, 95% of all multi-platform games have more success on the 360. Expect Resident Evil 5 and Street Fighter 4 to succeed on the 360 this month. And that isn't even something to flame, it just happens, EVERY-TIME. Whenever a major 360 exclusive DOES come out, it blows everything that it is competing with out of the park.

Never have I seen complaints on any of the other major sites such as 1UP, Kotaku, Joystiq, IGN, Gamespot, etc.

Microsoft, just like last year, and the year before, and the year before, will do perfectly fine. Halo Wars is already showing that. It has had over 2 million demo downloads so far. Then you have Ninja Blade, Star Ocean: The Last Hope, Race Pro, GTA: The Lost & Damned, etc. just in the first 2 quarters of the year.

You can probably also expect another price cut, due to the fact that they are now making a profit off of the 360. They could easily bring it down to breaking even. Not to mention how they are developing the Valhalla motherboard which has the cpu and gpu as 1 superchip which increases space within the console and lowers the manufacturing costs.

[burbulla]

Price cuts, if that doesn't work they need to handout free 360s, no seriously!

[thats_just_prime]

Thehiphopps3fanboy is ruining game just look at N4G prove that reading anything he prints kills brain cells.

[likedamaster]

"Someone PLEASE start a petition to get him kicked off of N4G. Guy is ruining game journalism!"

Agreed. At first he seemed interesting, but now...despicable.

[Consoldtobots]

the thing most need to remember is that Microsoft and their online viral marketers WANT this to be an arugment about price. That's all they have left to argue. Id rather keep it centered around value which is an area where the 360 fails miserably. Seriously speaking I am turning my 360 on a bout once a month now and I don't see that improving anytime soon.

[NickIni]

"Thehiphopps3fanboy is ruining game just look at N4G prove that reading anything he prints kills brain cells."

That was hilarious. Thanks for the laugh, but, to stop yourself looking like a complete fool, I suggest getting a spell checker for next time.

[StephanieBBB]

Right now I own a PC and a PS3. If I where to buy a 360 then I have to ask myself how much would I get out of it in the coming year?

Almost every game Microsoft is bragging about is also multiplatform so that won't cut it. Microsoft has still not confirmed that the RROD issue is fixed. Xbox live costs money that could be spent on games on the PS3/PC instead.

This time it's no tricks or illusions that will do. They'll have to really pull a bunny out of the hat this time.

[XxZxX]

Quit and focus on software and reclaim the OS market please.
With their focus in all area, they are losing market share on everything. How bout getting back to root, and focus to get OS market share first by putting up Quality OS for the first time.

[UltimaEnder]

Does this website ever do anything besides these stupid fanboy flame-bait articles, seriously why would they when N4G keeps eating them up!

It's obvious that he uses this site as his personal burning ground for his site's junk articles.....seriously this place will soon only have HHG fans, should be fantastic...LOL

[Foxgod]

Time will learn.

[cayal]

True. I am curious to see what they will announce.

Frankly Halo and Halo is not interesting to me. I want to see Alan Wake and something a bit more varied.

[Foxgod]

Well, i think the line up is pretty varied.
Where getting rpg's, an rts, some shooters, some racing games, and a bunch of action games.
What more categorys are there ?

[cayal]

At this stage they have nothing that wow's me like some upcoming PS3 games are doing and that is what I want to see.

[OSIRUSSS]

Nothing games wise. I would imagine a Price Cut maybe? Thats the only weapon MS has left. Or making Live free.

[CID]

Wont make a difference cause its the Arcade that is selling and thats already dirt cheap. They would have to lower the price of the Arcade to $99.

[Arnon]

Wrong. The ones that are actually selling the most are the Pro and Elite. Even stupid people know about how bad the Arcade is.

[NegativeCreep427]

More Gears games.

Oh and a sequel to Lips. LOL! Good Luck MS!

[Sir Ken_Kutaragi]

They could call it 'LIPS 2:ASS' ;-D ;-D ;-D

[Sanzee]

I don't know why so many of you continue to hurt your own console fanbase with weak-a$$ statements. I know there are PS3 fans out there who are true-blue, 100% hardcore gamers, and not a bunch of clowns with bad comebacks. Why don't you defend your console by literally supporting it, and not by dogging the dude ahead in line. What does it show for your console? 3rd place? You tell me man. You represent the machine.

[blackbeld]

The next move for Microsoft is sh*ting out they're pens... hahaha

[Theory Of Suckboxism]

More Halo games? Give us Xbox 360 owners something new to play Microsoft,why can't Microsoft be more like SONY? :(

[snipermk0]

is a bunch of bull.. I can't believe you guys even take them seriously anymore.

[GiantEnemyLobster]

Sony is hanging in there by a string and Microsoft is coming with the scissors

[cryymoar]

because Microsoft is too busy trying to be like EVERYONE else.

@ lobster
No, Microsoft are rope-tied to a train tracks, and Sony is a train steaming full ahead.

[Sir Ken_Kutaragi]

Hmm...More Dirty internet LIES???

[GiantEnemyPrawn]

Yep thats right. More lies from Aaron Cheeseburger and more Xtards prentending they have a PS3.

Also more Bots claiming multiplatform games as exclusive.

[SmokingMonkey]

@ giantenemyprawn

[blackbeld]

Aree with ^^^^^^^ all you guys.. lol

[eagle21]

Price cuts will hurt microsoft more than they already are. Microsoft can't cut price anytime soon. Investors would go crazy.

[Omega4]

Whats that suppose to mean!?

[soljah]

yep this price drop strategy was what ms used for the original xbox right before it hit the bargain bin close outs in wally world.

[Arnon]

Pretty sure you're confusing yourself with Sony. Microsoft makes profits on the 360 already, Sony? No.

[hfaze]

"Microsoft makes profits on the 360 already, Sony? No."

Really? So how much profit does Microsoft make off of the $199.99 Arcade models out there on the market? How much profit does Microsoft make off of the Pro or Elite?

The only 360 SKU that I can see being profitable for Microsoft is the Elite, and probably breaking even on the Pro. But trying to convince yourself that MS is making money off of the Arcade... LOL...

[Arnon]

And yet, common logic slips your mind. You do realize how cheap it is to manufacture the motherboards now for the 360, correct? Jasper is nothing to them rofl. Also, how would YOU know what they make a profit off of?

[no-spin]

thanks in large part to their marketing strategy.
PS3 will keep getting better anyways, so everybody wins at the end.
MS is going to drop the price but i wonder, what for?
being already the cheapest has not given the final blow to the PS3, and this year price cut alone wont do the trick.
I know i prefer my PS3, and hopefully MS will deliver as it did last holiday season.
just play the game boys, the rest does not concern us

[cayal]

Microsoft will be fine (as will Sony and Nintendo). They won't exit gaming, at least not any time soon.

But I think they do need to announce what is coming and give us something for it.

[Dawn_Of_Ashes]

Please... hhg and his "crew" dont have any credibility on what they are talkin about.

[Death]

Sony needs to be profitable more than they need to increase sales. Even if Sony drops their price, it will not be a $100 drop. That is suicide. Maybe a $50 drop, especially this time of year.

For those that say Microsoft drops the price whenever they are desperate, they have only dropped $100 in over three years and that was in $50 increments over 2 years time. The PS3 today is $200 less than launch. It's more than hypocritical to claim Microsoft drop out of desperation when the PS3 has dropped features and prices twice as fast and twice as much.

When the PS3 get's a drop, it will most likely be to $349. At that time we will probably see a $349 Elite. The Pro and Arcade probably will stay at $299 and $199. This isn't rocket science.

-Death

[DJ]

While the 360 started out at $300~400. Sony has had a more significant price drop, but that was only to keep up with the 360's MSRP. The fact that the 360 is now priced at $199 while the PS3 is priced at $399 means that Sony has a lot more breathing room.

The 360 can't get priced any lower over the next few years (lest Microsoft accepts a $150 hardware loss), while the PS3 can really put on the pressure at $249~299 in the future. It all depends on how soon a slim-line PS3 is released and whether or not Microsoft releases a slim-line 360 in order to keep up.

[JokesOnYou]

"For those that say Microsoft drops the price whenever they are desperate, they have only dropped $100 in over three years and that was in $50 increments over 2 years time. The PS3 today is $200 less than launch. It's more than hypocritical to claim Microsoft drop out of desperation when the PS3 has dropped features and prices twice as fast and twice as much." -Death

"But the PS3 was priced at $500~600
While the 360 started out at $300~400. Sony has had a more significant price drop, but that was only to keep up with the 360's MSRP." -DJ

lmfao...DJ thats the whole point, Sony was forced by the lack of consumer demand to lower the price MORE than micro has at this point, duh of course the 360 started much cheaper than ps3, lmfao because micro did not force you to pay for bluray, ironicaly even with bluray included its going to take sony to LOSE MORE money just to close the sales gap with a console thats *supposedly inferior in tech specs and does not have bluray capabilities. So even though the differential in price has DECREASED, 360 still INCREASED its NPD sales by 100,000 in January, while the ps3 NPD sales DECREASE in January. WOW, that says alot about how good the 360's games & online features really are.

JOY

[DJ]

Were significantly lower than its figures for January 2007. Sales dipped in 2008, then rebounded because of the price drop. Same thing happened to the PS3. Its sales were down its first year, and then after the price drop they shot up. Now that there wasn't any price drop and the 360 is a lot cheaper, sales are down in January.

But to put some perspective in this conversation, we're only talking about North America, which represents about 35% of the gaming market. The real question is why the 360 hasn't reached Wii-like popularity, despite being cheaper.

[Death]

The Elite is $399 just like a PS3.

The Pro is $299 which is $50 more than a Wii.

The Arcade at $199 is $50 less than a Wii, but I'm pretty confident most people realize this is an entry level console and doesn't come with all the bells and whistles.

I'm starting to belive in my heart that Playstation fans trully believe Elites cost $199. Where on earth are you getting the $150 loss per console, production costs from 2005? I'm going to go shove some needles under my finger tips for this, but here's an interesting link to VGCharts that looks at production costs. http://news.vgchartz.com/ne...

-Death

[likedamaster]

Microsoft ain't dropping prices and Sony can't afford to. http://www.gamespot.com/new...

[Consoldtobots]

dear noob,

Linking to VG charts = AUTOMATIC FAIL

yours truly,
The Internet

[fingazblank]

I think ms are actually running the show (forget nintendo, they offer repite care for the needy) but if you remember, Sony with the ps2 they relaxed 3-4 years in the ps2 life cycle, ms are doing the same thing.

It's not the end by far. With superior 3rd party support.

New Splinter cell ip, Alan wake, halo wars, Halo:odst (not even mentioning what else bungie are doing) GTA DLC to us western gamers, 2 halo games in the same year means cash cow get run dry.

[SmokingMonkey]

but i imagine they will keep trying to emulate the PS2's success

more jrpg's anyone?

and Killer Instinct?

but compared to Sony's big three

KZ2,Uncharted2,GOW3....theres not much they can do

[ForROME]

Release a Slim at 249 do an expansion for HALO 3

[south205]

Death made a good comment at the end here. You guys have to open your eyes a bit to basic economics. The elite needs to drop but that's about it. It doesn't really offer anything over the pro version except 60 more gigs. You're still better off buying a core and then buying the 120 gig individually. All 360s come with hdmi ports now so it's practically useless to purchase a 360 for $400.

Sony would be in a good move to drop it to $349 but $299 sounds a lot better. They are a lucky and fortunate company though. Only other console that ever launched for $600 was the Neo Geo and that thing dropped off the map in 9 months.

If you look at basic spending, the only reason the PS3 isn't selling like hotcakes is because of the price. The games are there. I've had all systems since launch so it's practically common sense.

[DJ]

The 360 is still a relatively expensive product to manufacture, and $199 is the lowest MSRP they can offer it for with the current hardware configuration. If they created a slim-line 360 (akin to what Sony does), then they'd be able to dip to $149. But even that's a huge monetary loss.

[Captain Tuttle]

You just make this stuff up as you go along don't you?

[JokesOnYou]

lmfao, Yes that's exactly what he does.

Keep it coming hiphopgamershow, very entertaining stuff.

JOY

[DJ]

Just a bunch of empty posts and disagrees. It's not like this is a hard subject to discuss.

[Death]

Last I seen it was the Elite at $399 and Pro at $299 that actually compete against the $399 PS3. If the PS3 drops to $349, so will the Elite. A $299 PS3 simply is not realistic since they are just now breaking even at $399. The company's goal isn't to move hardware and increase losses, it's to be profitable.

-Death

[Captain Tuttle]

It's because your post was just empty numbers...nothing to back it up. Show me a legitimate link from the last 6 months showing the cost to MS to make a 360 and I'll take you seriously. Your numbers mean nothing to me.

[Man_of_the_year]

Well when Sony can get out of LAST place, then i guess MS will have something to worry about - until then i think Sony has more reasons to worry...

Like around the 8 million mark more reasons....

[Graphics Whore]

For clarification, 3rd place isn't really important in the over all grand scheme of things.

Are Sony producing triple A titles: Yes.

besides, since when does shipped count as sold?

[Man_of_the_year]

Hmm - i am sure you have a link that clearly shows that the 28 million that MS say are sold are actually "shipped" right? Or is that just another Droid comment that your kind make to try and make it sound like proof. Your fanboyism is not recognized as facts.

Also Sales DO matter as it all comes down to marketshare. The PS3's "AAA" games are far and long between each other. And according to Metacritic the 360 has more AAA games and higher rated games over the PS3.

3rd place IS a big deal - especially when you were once dominating the Market the Gen prior and are now struggling to maintain exclusives or multiplats - don't make me have to list all the once exclusive games that Sony had or have to mention all the games that were once ment to be multiplats but then due to marketshare, resources and attach-rate per console failed to be on the PS3.

[likedamaster]

@Man of the Year

You get my vote.

[Graphics Whore]

Marketshare? Why do you even bother bringing it up with Sony shares sell for more than Microsofts lol.

Your just a silly failed xbox fanboy who can't come to grips that the times are changing. There is no single console, people are becoming multi-console owners. You can cry as much as you want, the future is being shared.

Just because you can't afford a PS3 doesn't mean you have to bash it because you don't have a job or attend school and sit on your ass lol.

[dukadork3]

xb!tches pound chest with one hand, polish their tiny weeny with the other hand and bark like loud obnoxious baboons about the amazing achievement that is being in 2nd place.

in the mean time, we throw'em a banana and have a giant ball playing the best games on the best hardware with the self confidence that only a badass software lineup can provide.

xb!tches, are you ready for your incoming killzownage?
BWAAAAAAA HA HA HA HA!

[Man_of_the_year]

You Idiot - Market share is not the same as stocks...LOL what a really stupid thing to say. Sony is 18.83/share 52.36 high low 18.09 and MS 19.29/share 32.10 high low 16.75 as you can see as of right now MS's stocks are higher than Sony's. Do i really have to educate you on what market share is. Ya i guess i do. market share is a total of the entire gaming market out there. Each console has a certain % of that market - determined by # of consoles sold. So for example - if Sony, MS and Nintento have sold 100 consoles combined and Nintendo has sold 60 of them, MS sold 30 of them and Sony has sold 10 of them...then Nintendo will have a 60% market share, MS 30% and Sony a 10%. I tried to make this explanation as simple as possible for you feeble mindset. I hope you got it.

You are right - times are changing - Sony will be in last place this Gen for the whole Gen for Software and hardware.

Accept it, the whole general public has - only you Sony Droids hang on to the dreams and BS that Sony PR shovels down your throat.

And check my Bio - i do own a PS3 and i LOVE IT, but i am not so delusional like yourself to not be able to see the truth in the reality of things.

[n to the b]

lol, I guess some people don't know the diff between stock shares and the term 'market share' (and yet PS3 is supposedly the elitists' machine!).

well said, manoftheyear.

[CaptainKratos]

they can say "XBOX 360 is the Messiah"....

[3sq]

1. Price Cut
2. DLC
3. Steal 3rd party exclusive games from Sony.
4. Milk more Halo and Gears

Honestly I've seen anything new from them in a long long time.

[creeping judas]

once again MS price drop will be called desperation again, but when sony drop their price it will be a strategic move??? you cant have it both ways fanboys!!! you just cant.

[IWentBrokeForGaming]

they don't need their games to match PS3's graphically, much like PS2 didn't need their exclusives to match Xbox's graphically to keep moving units!... good/great games go far beyond what only graphics can offer, and is something too many people are forgetting this gen!

[Sanzee]

I know PS3 fans have pride, and I admire that. For real! But unless some changes are made, I don't see any chance for a strong comeback. Now if you think I'm dogging, think again. I respect every side of this war.

I predict the Wii will win, the Xbox will sell plentiful and take second, but despite taking third place I think the PS3 will PWN my Xbox to the power of ten in terms of graphical superiority.

[Consoldtobots]

I see comments like yours and just shake my head, perhaps you are an uninformed child. Selling 200+ million consoles over two generations means you have one hell of a software lineup to choose sequels from and thats not even going into NEW IP's like uncharted and resistance,LBP etc.

Only dumb noobs think that a company who is CLOSING down studios can compete with that in the long run.

[evilmonkey501]

Its about who can make more money. Get over it. Who cares? I own both and I KNOW why the ps3 cost more...its because it does more. A lot more, and its better at it too....with one exception....LIVE.GO AHEAD AND DISAGREE.....YOUR STILL WRONG. Video gaming is not all about units and sales. Its about quality entertainment. I really could care less if Sony sells the least amount of hardware or the most. It is irrelevant to my gaming enjoyment. I know I'm getting more for my money and that's all that matters....(goes and plays Killzone 2)...

[ultimatek1]

The one who wrote this article is nuts, PS3 catching 360? First of all i love Sony systems. I own a ps1,ps2,psp but no ps3 yet. So, In term of sales, Sony hasnt sold more system than the 360 since the months of MGS4 release. The Gap by then mas 6.8 million units. Actually the GAP is Betwwen 8 to 8.2 million units. And worse, in xmas 360 outsold ps3 almost 2:1(1.44M vs.0.73M) same happened in the black friday weekend. I can't imagine why the autor say the PS3 is catching Up, cuz no way is looking like that. If an article will come with a fanboy attack, the this is not news, this is an oen war between Reviewers,Autors, and readers(fanboys) in a never ending campaign against their console of choice.

I gonna buy a ps3, im Excited about Uncharted 2, White Knight and GOD of War3. Killzone2 has been too much inflated, i agree is a great game but is not an innovation nor can clearly make a gap between consoles, gonna try demo 1st, then decide later.

But reading stuff like this, makes my mind start hating sony and it's way to convinve ppl.

[Arnon]

THANK-YOU. The gap has actually increased after MGS4.

[talltony]

Will stay competetive through price cuts or great games.

[Ko_Uraki]

We don't need more.

[zonetrooper5]

Kodu isn't an answer to LBP, its a program which will be used to help kids get into programming.

"Kodu (originally named Boku) is a programming environment for children that runs on Microsoft Windows and the Xbox 360."

http://en.wikipedia.org/wik...

LBP on the other hand is more comparable to Garry's Mod or many other editors that come with alot of PC games, still LBP is a great game.

[-IronMan-]

Too fix the RROD. OH wait they cant its a design flaw. :(

[kewlkat007]

XBL will take care of itself...If you build it(bigger install-base) The Devs will come, with more titles.

[JokesOnYou]

micro= cut 360 price by 100 in 3 years

sony= cut ps3 price by 200 in 2 years

NPD 360 sales= 309,000 up 33% year over year

NPD ps3 sales= 203,200 down 25% year over year

360 games in top 10= 4

ps3 games in top 10= 0

n4g analysis= micro is in trouble, what will they do?

lmfao, I love you guys, dammit all the spin is making me dizzy, I need to take a nap, tell me a RROD bedtime story will ya?...

JOY

[Foxgod]

Nice analysis :)
And true, i wonder how they will spin the details you mentioned.

Bubbles up.

[ApocalypseShadow]

sony dropped only once by $100 dollars for each sku.

$599 or $499.

now it's $399 or $499.so,you're a lier there.second,microsoft dropped the entry price to $199 because they were getting outsold by sony wordwide for most of 2008.and you know this to be true.you can say that microsoft sold more through christmas and the beginning of 2009.but at what cost to their profits?and at the same time,nintendo outsold and past microsoft without even trying.

third,in a recession,sony still sold over 200,000.at double the entry price.who you trying to kid?but you also neglect that sony has three sucessful consoles on the market.while microsoft has only "ONE."

chew on that.as for the topic,microsoft will drop the price of premium and elite by $50.and most likely bring out a wiimote type controller to try to cut into nintendo's sales.and have rare make the games.but it won't help.as having a low entry price has not gotten 360 to sell like wii.

apocalypse..........

[kewlkat007]

MS probably has been doing the worst out of all console makers..

[00]

nevermind

[JokesOnYou]

"now it's $399 or $499.so,you're a lier there"

wtf? $499 are 160GB + Uncharted, here check it out:

launch ps3 60GB sku= $599

today ps3 80GB sku= $399

http://money.cnn.com/2006/0...
http://www.bestbuy.com/site...
http://www.walmart.com/cata...
http://www.gamestop.com/Bro...

So yes the 60GB was replaced with a larger HDD ps3 albeit minus the BC and yes its $200 cheaper....anyway you look at it sony was forced to make deeper price cuts than micro because of lack of demand, lmfao anybody with half a brain can see this...more spin from shadow, damm where's a good old RROD bedtime story when you need one?

-oh, and if you're going to falsely call me a "Liar", at least spell it right.=

JOY

[ps92117]

tell me does 80gig have backward compatibility like the 60gig or does it not like the 20gig or is the 80gig the same unit as the 60gig except people give 2 different names to the same unit, anyway you want to put it the most cheapest ps3 at launch was 500 and the most cheapest ps3 currently is 400, and even if you ignore all of this lol guess what, ps3 outsold 360 even though it was and still is more expensive, much like wii is doing lol see everybody wants a ps3 and they know it is better but some cant afford it lol the only reason 360 is still in competition is because of the desperate price drop. Eventually ms will make the phoenix and sony will make ps4 but by then sony will have 30 developers under there wings and ms 4 lol. though luck lol

[DJ]

Which is 35% of the gaming market. You made a really bad attempt at implying that PS3 is somehow "dying" by strictly comparing Jan 08 to Jan 09 NPD figures. The reason this thought process is flawed is because there are too many variables that can cause "year over year" dips or spikes.

For example, Halo 3 caused a huge spike in September 2007 NPD sales, which thus caused a year over year dip for September 2008 sales. And we all know MGS4 is causing a big year over year dip for June 2009 sales since it raised PS3 sales significantly in June 2008.

These are the facts: Xbox 360 has a 6.6 million console lead over PS3 globally, which is a drop from its original lead in January 2007 of 9.5 million units. PS3 has been outselling the 360 by roughly 1.5 million units a year, despite being priced significantly higher throughout its life cycle.

With the way things are going, Sony and Microsoft should have identical install bases within the next 18 months, which means multiplatform developers are going to be able to take bigger risks with their IPs. This is great news for everyone, and ensures that both platforms will be treated with respect.

[Dimitri]

Soon they will drop the price of arcade SKU to 100$.
Its funny. Thats how much the XBOX 360 is worth (the current price) and if they are thinking about dropping the price again, then its probably worth about 200$ ?? Speaking of production costs...

Well what would you expect from a 3-core processor and an outdated graphics chip.

[Bathyj]

I dont know why everyone thinks M$ cut just keep dropping price forever. They cant be making money on a $200 console.

Ok, fair enough, maybe they cant afford not to, and maybe they're willing to wear the losses, but even they must have a line. Lots of grumpy shareholders lately, they cant keep losing money forever.

And there's no info to say they're not losing money again since the pricecut. I dont see how their manufacturing costs have gone down that much to finance the cuts, especially with new models coming out everyother month.

I think they've just done it cause they had to and will bare whatever costs that brings.

[OSIRUSSS]

I stated that multiple times. Everyone thinks the 360 is sold for profit. How? When the damn thing have a new chipset every 6 months. The R and D on those chipsets aren't free.

[Jaces]

If M$ drops the price, I'll probably consider picking one up by then.

Lets see if anything this year wows me...

[ultimatek1]

Man, wake Up sony is selling less year over year in the ps3. I accept is selling great on psp, but DS has sell double. So in terms of console sales it seems Sony will end in 3rd place, and in handheld at 2nd. Even if Sony starts selling 3:1(just impossible) it will need to take 2 years to pass xbox 360, and then we're talking the year 2011, the year that almost every1 has agree that MS will launch or anounce the inminent launch. Online profit for sony is weak, and thats why 360 online service is more profitable cuz is beign paid for it , and that makes alot of money, something PSN barely see. And software sales for every multiplatform game, MS360 sells the double than ps3. Ms is fighting with nintendo for the Software profit crown, and sony barely is making from software, at leas with the ps3. Currently Sony is making a psp2 but is in denial about it, cuz its a strategy needed to be the 1st one to launch, like MS did to them, and be able control of the handheld games segment. So my best advice for sony is to begin the design of the ps4, cuz im sure MS is already on its 3rd next console.

IF YOU see im not saying one is better than another, im taklking about facts, c'mon grow up and stop beign a fanboy, u dont get paid for that, still it makes you waste ur money for they way u think, be rational and maek your comment based on logic and not feelings. Have a nice day!

Still I love Sony!

[Handsome_Devil]

one of them is the software, when most of the publishers say they gain more profit from selling the PS3 games than Xbox 360. That just show you something, doesn't it ?

and with the PSN, well lets just say Home alone made over 1 million dollar in the first month. ( I think I'm right about the period of time, it might be less )

so I can easy say, you are wrong my friend :)

[JasonPC360PS3Wii]

To continue beating it :)

[JasonPC360PS3Wii]

Sony is last, Microsoft isn't... What other moves do they need?

[Theory Of Suckboxism]

I agree my fellow Xbox 360 loyalist,who needs games when we have console sales!! :)

[trancefreak]

You bots are funny. Hello Mcfly Sony launched a year after the 360. And About 10 miliion 360s sold are red ring of hell models.

[Theory Of Suckboxism]

Microsoft will admit defeat and drop out of the console war,hopefully they will give me a refund for my Xbox 360 and all my mediocre games so I can finally afford to buy a PS3 like most Xbox 360 loyalists!! :D

[ultimatek1]

I meant Overall Software. I read it once, at gamespot i believe. And about PSN, 10M x 50 per Year= 500 Millions per year, and 41Millions per month with just the Xbox live Gold . Without to mention how much Xbox live arcade games made monthly about 6-7Millions, and Xbox marketplace about 10Millions, so thats about no less than 55 million per month VS 1 million in PSN, Home? Are u nuts?

MS use all of the income to keep live well and healthy. I recommend to PSN to start with a fee, amd MS to cut it to 35 or 30 bucks per year. I do agree it hurts a little, but i enjoy it every day.

[MicroSony4Life]

would this world be if we never had choices. Can you imagine walking into a game store and the only console to buy was the PS3 (Wii DOESN'T COUNT).

On another note I was watching 60 Minutes and they mentioned something about American should buy American products,wonder if that will work out in Microsoft favor.

Then again it can also hurt them because China will fire back with chinese should only buy chinese products.

[hfaze]

"On another note I was watching 60 Minutes and they mentioned something about American should buy American products,wonder if that will work out in Microsoft favor."

I hardly consider a console manufactured in Asia and Mexico, then with customer support being based out of India, Indonesia, and the Phillipines to be an American product.

Sure, the parent company is based out of the US... But how many Americans are employed in the XBox division compared to offshored jobs?

[badkolo]

yeah its a little weird, wanting your system to be #1 is one thing but to wish death to the competition is absurd, without competition we wouldn't have what we do today.if it was only sony and nintendo, the wii would be number one and the ps3 would be in second, then what, it would look even worse for sony. if it wasnt for the xbox the ps2/ps3 probably wouldn't of gone with a HD and might not have concentrated on online gaming or a psn.

Not saying ms was original with what they did but competition breeds innovation. Because of whats going on this gen I can see all 3 companies trying to outdo themselves for the next gen because of things that they see happening now, they will try to improve.

[trancefreak]

Article has no proof of anything. Move along gangsta gamer cant provide sources.

[HyDRo-X1]

how do we have no proof of anything? if it was fake, there would be like 20 reports on it, there is none. this is just simple facts that have been put out separately on different articles on N4G, all i did was join together all of those facts into one article... i cannot tell if your a fanboy, but your obviously in the anti-hophop business...

[trancefreak]

your funny dog im old school and u have no proof still.

Show me some links man

Btw you dont have to like rap to be a hip gamer + Im 37 I have all the g stuff though and you still have no proof. lolz

[Pleth]

We are talking about 2 HUGE corporate deities, who have their hands in almost everything we touch each day. MS dominates the operating system market and Sony OWNS Columbia Pictures and has had their hands in almost every tech toy since the discman.

I seriously doubt the suits sit around the boardroom and wonder how they will take out the competition in the gaming console feud. I'm sure it gets some due attention, but really...

Everyone's string is showing all the time on this site. It's just video games!! Both systems have good and bad things. So, if you are a true gamer, get em both. Ford and Chevy has the same deal with thier die hard fanboys. Spending time arguing with someone you have never met about who's tubesteak is bigger is a waste.

I surf the net and gaming sites to find conversations about actual games, help with walk-throughs, cheat codes, anticipation of a new game. Can someone tell me a site where I can find a good, no whining let's bond as a gaming community website? PLEASE???

Cheers.

[badkolo]

Well yeah the car analogy holds true, some will argue(chevy guys vs ford guys) that the mustang is the best while the others will argue that the camaro is best etc... But it ends there, for some reason we dont have that with gaming, maybe because there's alot more younger people who play consoles so you have a larger majority of people with more time on their hands to argue points about the system they like or not.

While many make their points and express their opinions it seems to get severely out of hand for some strange reason and i dont see this with other things other then consoles and games.

[Knightofelemia]

Whats a lower end Ps3 as far as I know the 80 gig is the lower end since the 40gig is not made anymore. As for the lower prices on the 360 its a great way to clear out those with the RROD feature and bring in the Jasper. But a price cut for the PS3 is greatly neede so those who do not have one can enjoy it now.

[speedracer17]

there is no next move there is a lot that thay have done and i think it is time for them to sit back and let sony have the upper hand for once. there are many things that they did right no matter what people say about the xbox 360 and it game. but this is the year of sony i expect good thing from them this year.

[hetz15]

very smart move by M$ which caused them 33% failure rate

[Masta Kaos]

If Xbox was great as the Ps3 why are they always droping the price...? MS knws that they cnt compete with the Ps3 on that level. Ps3 exclusive games wil show whoz the Boss....its not 2 late 2 buy the supreme console and enjoy KZ2, GOW3, UNCHANTD2 ETC...

[gameman]

Dear

Have you ever think that Sony is supporting three consols on the market ?? or you just wish that they were magically vanish?

if you say the worldwide sale's between the two companies you will see that:

1) the PSP is outselling the 360 everywhere in the world and while the 360 only outsell it in the US and they where no big gabs there too (the PSP cost= 170$ the 360 = 199$........5 year old console VS 3 year old console)

2)the PS3 is nearly equal in the term of the sales (both sold 10M in 2008) and the PS3 is double the price of the 360 what dose that make you think??? ( the cost of the PS3 = 400$ VS the cost of the 360 = 200$) so mainly we all know that Sony will be making profits from the PS3 this year they have already announced it

3) the PS2 is the only console that the 360 manage to outsell in term of sales in 2008 and yes it IS a 10 year old console that cost 120$ even when it's 10 year old or even more and yet the ppl still buying it (the cost of the PS2 = 120$ vs the cost of the 360 = 200$)

i think with this kind of information Sony is doing waaaaaaaaaaaaaay better than Microsoft in the gaming industry and only a fool will try to deny that

[BMS84]

What can MS to , just drop the the price to
$49,-, so the sales will remain postive.:P

[Ryuk]

Is to upgrade from a belt to a whip...so they can whip sonys ass even harder. >:P Last time I checked...sony was in last place and the gap is only getting wider.

[Obama]

Well MS surely needs more exclusive titles since their lineup just plain out s*** this year. And as usual the bots are talking about sales. Keep talking about sales and have nothing to play in 09.

[wiizy]

both systems are trash to me... its good to watch the competition for who takes last... since the only system with something new to offer is so far ahead,. isnt xbox cheaper then wii now? and sony is so backward they cnt afford a price drop?

[Droid Control]

but i'd settle for Alan Wake...

[miasma]

Can't we all just get along? :(

[Nexy]

The irony of the current situation is that we should not expect any new move from MS soon.

They do not need any new moves. PS3 is losing pace everywhere to X360 except for Japan which is now a smaller market for software than UK. And even there X is doing much better than in the past. In mainland Europe SONY has also lost its ground. Mutliplatfrom game look better and sell better on Xbox 360. Also their exclusive titles sell much better.

I am not claiming this is a good thing - SONY is in a big trouble with their PS3 but that means Xbox guys do not have to make anything really new. And that obviously is not a good thing.

[Raoh]

The biggest microsoft move to come will be the Microsoft Retail Store.

technically no one is going to line up for windows 7 or ms office at these stores although it will be a good quick go to spot for these things.

zune? LMFAO

games? definitely. in store promotions. in store deals. memorabilia. etc..

question is how will retailers like gamestop and amazon react to this.

apple didnt have this concern cause it was mainly sold via itself all the time. so an apple store threatened no one.

microsoft relies on retailers for its products. it may be cute to partner with the store at first but whe/if they see sales decline due to a microsoft store will they partner with the competition out of retaliation.

Microsoft is a smart company with plenty of spending cash. But it's own ego and quest for domination could be its downfall (talking about the company as a whole not the gaming division)

[KarIostomy]

Why does MS need to make a move again?

Currently they're outselling the competition.
They have a profitable platform.
They have great games across all genres.

Realistically, they just need to sit tight and let their installed market lead grow.

[tee_bag242]

These articles are getting so annoying. Who says Microsoft need even make their next move with Sony in mind and vice versa. Sony and Microsoft have likely accepted that if they both keep staying on their game they are capable of co-existing and having similar market share (give or take).
Regardless, time has already shown there is obviously room for the both of them including Wii.
Gamers that appreciate a good game no matter what console (non fanies) want both consoles and at some point, they usually end up owning both. So then what? Win Win! Give me more 360 games please, give me more ps3 games please.

[Godmars290]

Not only will their next move be in consideration of Sony, but Nintendo as well.

They're literally fighting a war for marketshare on two fronts. That's why most of their energy is in promotion, not quality or innovation.

[Says you]

Doesn't have a real userbase considering its a false userbase with the same people that had there XBox 360 broken many times and count the same people that bought another XBox 360 as part of there userbase the PS3 and the Wii have the real userbase.

[Fakes]

Xbox 360 is a good system with some good games and alot of crap games as well.The only bad thing about it are that the damn games,good and bad are very glitchy,with pop-in and slowdowns a commön thing.Its like a cheap pc but with restrictions.

[Nexy]

You've just written a description of PS3 as well.

[Godmars290]

Expect with problems PS3 games you can usually point the finger at it being a 360 port.

The 360, for games like the frame rate issues in Lost Odyssey or texture loading in Mass Effect, doesn't have that excuse.

[Jdoki]

Microsoft are doing fine
Sony are doing fine
Nintendo are doing exceptionally well

They each have differing strategies, targets and expectations. None are failing, and all will be around for some time to come.

The only time to actually comapare success is when the generation is over and we can look back. Profit and marketshare are the two biggest factors for the companies, but have zero effect on us as the consumer.

It makes no sense to only compare one generation on a month by month basis. There's so many variables.

Using the twisted logic of some people on this site you could argue that Nintendo are failing because they don't have a 90%+ market share as they did with the NES!! You could argue that MS can't be considered a success until they've actually made back all their loses in the Xbox division. You could argue the PS3 will be a failure unless they sell the same volumes as the PS2.

The games are what matter to me. As far as marketshare and profitability are concerned I couldn't care less as long each manufacturer makes enough money to keep on building generation after generation of consoles to entertain me.

If validating your console of choice through sales numbers and metacritic scores is what lets you sleep at night, you need to take a look at your game collection and remember why you bought your console in the first place.

[bobdog626]

Well said teebag .2 Each there Own.All 3 system's are great this Gen.To All Gammer's out there (Keep on Playing the Game).To Micro ,Sony and the Big N (Thank's for all the Fun you Guy's have given us)

[Godmars290]

Nothing that will improve the overall quality of their games.

[bobdog626]

I see this is never going to End .(Popcorn ready check .Beer ready check .All is ready let's Rock)

[Bordel_1900]

"What is Microsoft's Next Move against Sony?"

This is exactly my problem with Microsoft, they don't play their own game, their plan is always to fock up Sony's plan. While Sony plays their own game, their not in the bussiness of focking up Microsofts plan, they just work hard to make the best console possible and the best games possible. That's at least my impression.

[edgeofblade]

How naive. Read a press release lately? They are BOTH at each other's necks, and they are factioning out the hardcore demographic so it's several times weaker than the casual demographic. Nintendo is going to destroy what Microsoft and Sony have worked hard to build... a next-generation hardcore following. And all you garbage-for-brains can do is fight with each other.

This is STILL a three-way war. And it's not going to be Microsoft or Sony who wins unless they wise up and get along.

[edgeofblade]

I'll say it again: the hardcore fanboys need to stop arguing over 360 and PS3. They are the same, and if Sony fanboys can get off the hype train and 360 fanboys can recognize a few good games on PS3, then their efforts could turn towards crushing the Wii. That's what's going to change the world of gaming for the worse, not Microsoft conspiracy theories or Sony arrogance. That's right, Sony and Microsoft fans need to get buddy-buddy... and there is no time like the present.

[Jaces]

It all makes sense now, destroy the Wii!

[bobdog626]

About as much sense as Which came first the Chicken or the Egg : Answer is who the ...care's which one came first!They all are good system's can't you people see that.