Rumors Mounting Over $399 40GiB PS3

[Dodece]

Microsoft said it first. Unfortunately they are in a position to want to know what is going to happen, and be in a position to know it will happen. They are in a position to buy information, and loose lips find a good home in the industry. However it might also be speculation on their part, and how they feel things will unfold.

Look at it this way Microsoft has every reason to expect Sony will try to compete this holiday season. They know and Sony knows its the price above all else that is hurting the PS3. Sony also needs the system to sell well in hopes of driving their media format. Lets be blunt the HD-DVD players are dropping prices at a staggering rate, and the sales are increasing. The 360 player on Amazon shot up nearly four hundred percent when they unveiled their special offer.

Sony really needs to compete this holiday season, or they stand a great chance of losing both wars, or worse showing huge losses on both fields. That said Microsoft can sincerely believe that Sony is going to do this. Beyond that it is good practice on their part to bring this belief to the public. They want the public to know now this will happen, and it will drive down sales. After all any good games for the PS3 will be delivered this holiday season. So the consumer should wait. Which only increases the pressure on Sony.

The consumer has every reason outside of financial logic to believe this will happen. Sony already cut a hundred dollars off of the price after six months on shelves. They lied about it right up until the point it happened. So nothing Sony can say now can change the way the masses see things. They are jaded and got a taste. So obviously many speculators will sit on the fence regardless of what anyone says, and will believe what Microsoft speculated.

After Microsoft made the speculation, and even up till the price cut. People were still speculating that the pro would be the same price as the Wii in North America. Personally I think Microsoft held off on their full price cut strategy. Perhaps they have another hundred dollar cut in the pipeline waiting for Sony to drop another cut of their own.

Will this happen personally I highly doubt it, and the reason is that Sony will not let themselves get drug into a price war at this point no matter how much they need to drive sales. They can count on holiday glutting to keep their sales stable. They push a price war and they will lose. Microsoft will simply match it or exceed it. They also do not have a comparable line up. Microsoft would win a price war, and far worse for Sony do far better for it. They would lose less, and they would win more. A larger install base, greater licensing fees, and better first party payouts.

I congratulate Microsoft on bringing the notion to the public it definitely hurt Sony on the sales front, and kept the consumers out of the war. They rightly feel the longer someone sits on the fence the more likely they are to buy a 360 instead of a PS3. They might force Sony to cut prices, and increase losses again. They also decrease confidence in the PS3. Microsoft took real advantage of the situation. Sony on the other hand can do nothing about it. The old mantra of the boy who cried wolf. Nobody believes them anymore. They got caught in to many price related lies this year.

I do not believe it for an instant, because I do not think Sony is this dedicated to the cause. However anyone who hopes for Sony to be a victor will believe it deep down in their hearts. Completely oblivious to the fact that it only hurts Sony. The irony is people trying to help Sony are only hurting them by posting these things.