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loves2splooge on 09 October 2009
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Carl2291 said:
loves2splooge said:
The PS3 introduced a new redesign AND introduced a much more impressive price cut and yet they can barely stay over 360 in Americas after 1 month (week of oct 3rd's sales figures are very close now). That is not a good sign.

Worldwide, you'd think that the PS3 would catch up eventually but the MS has more options they can consider at this point to stay competitive. The 360 price cut doesn't even hold a candle to the PS3 price cut so MS has a lot more room to initiate further cuts. The entry cost for a PS3 is now $300, instead of $400 and you get 50% more HD space AND a slim redesign added bonus (80 to 120) whereas the entry cost for a 360 is still $300 (you just have double the hard drive space for that price now). And no the Arcade doesn't count because it's a very barebones system that's only good for offline. Sony really went all-out with this huge price cut and since their system costs more to make than a 360 (Blu-Ray, Wi-Fi, Cell processor is more expensive), we know Sony is bleeding much more than Microsoft is on their hardware. Heck MS might not even be bleeding at all on hardware anymore. Microsoft can easily counter with a $50 price cut if they really wanted to. In fact they should. It would take the wind out of the PS3's sails in Europe/Others, the swing region warzone. Whatever they do, MS is not just going to sit there while Sony eats away at their lead in Europe/Others. Japan is already lost (though they shouldn't give up on Japan. They improved quite a bit from last gen), America is already in the bag so you know Europe/Others will be a priority for them. That's where the race will be won or lost.

With MS having deeper pockets and cheaper hardware, red inked Sony doesn't want to play the price slashing game with them. MS can eat the losses no problem whereas Sony's shareholders would be calling for their head if they bled the company further. Sony really made a big desperation move releasing a slim with 50% more HD space at $100 off.

Red- It is the PS3's weakest market and the 360's strongest market. Many were expecting it to be below the 360 there by week 2... And it has done very well staying above 360 thus far.

Orange- Sony also still have a bunch of options.

Green- Yes it does count. It get's counted in sales so it also gets counted in "analysis". 360 entry price is $150.

Blue- They already did try counter with a pricecut, and it didn't work. The next 360 pricecut wont arrive until Natal launches. By that time PS3 manufacturing costs will likely be lower. Hey, guess what... We might even see another small PS3 pricecut or new SKU.

Pink- They dont need to play the price slashing game. They have huge momentum right now and will outsell the 360 by a LOT for the rest of the year. Going into next year Sony has it's biggest ip: Gran Turismo 5 and a LOAD of other big games that will increase hardware both slightly and by a lot. PS3 will consistantly outsell 360 until Natal launch, which is where we will see the next 360 pricecut.

The Arcade does not count as real competition. It is a very barebones system. 256MB, 512 MB or whatever space the memory unit offers is nothing. Only good for offline because there's no HDD or headset. And it doesn't come with HD cables either. This is why the Arcade sku is much less popular than the Elite. And where are you getting $150? It's $200.

Didn't you listen to what I said? The 360 price cut was a joke compared to the PS3 price cut. All they did was double the hard drive space for the same price. The PS3 on the other hand dropped by $100 and they added 50% more HD space to boot and a redesign. Don't even compare the two cuts. And like I said, considering PS3 has Blu-Ray, Wi-Fi and their processor is more costly (Cell), Sony is losing a lot more on the hardware even though they're being sold at the same price. MS can afford to cut the price even more (with 360 being cheaper to manufacture) and it will make a difference if they do. Sony has the advantage because they are selling more (Blu-Ray, Wi-Fi) for the same price. If MS goes without a price cut (or at least some other trick under their sleeve) until NATAL, they'd be idiots. In Americas, it's not a concern because the Xbox brand is strong over there. But in Europe it's obvious that the more impressive PS3 price cut made the difference. The market in Europe has clearly decided that the Xbox is overpriced (why else would they jump ship to PS3 instead of stay with 360 if the 360 price cut was supposedly just as effective?). The Elite should be $249. And if Sony wants to follow down to that price point and lose even more money, their shareholders aren't gonna be too happy.