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Mr Puggsly said:
EricHiggin said:

Well I think PS2 would be the example to use with it's insanely cheap prices and longevity in the market partially because of that. I would personally say that PS3 is somewhat similar to the XB1 situation in that PS likely wanted to move on and leave the PS3 ecosystem and as many of it's troubles behind, as quickly as possible. At the very least, overshadowing it heavily with a PS4 laser focus. Will PS5 be just $399, or $499?

Part of the reason PS4 is as expensive as it is, is because it's still selling strong enough that PS see's no reason to drop the price. You don't fix problems that haven't come to pass yet. XB1 is selling for much less, with big bundles, and it's still not selling anywhere near PS4 numbers, so why would PS drop the price just yet? Now PS4 sales numbers are starting to show signs of weakness, so a PS4 SS this holiday with a price cut makes a lot of sense. It should have an entire year on the market before PS5 hits shelves, and will go toe to toe with XB1S(ADE) pricing if MS doesn't update that hardware.

I'm sure some people pass on their old hardware, and there is no doubt a second hand market for last gen consoles, but that clearly only covers a portion of the audience. There are definitely buyers who still want a warranty, something you don't get with an older second hand unit. If you finally save all that money and blow it on a used model and it craps out a couple months later you're screwed. Think about all the second hand 360 owners who paid the price and faced the RROD, and well as some of the OG PS3's.

The $199 market today surely isn't the money maker the $299 and $349 market has been, but it's not just about the money, especially this late in the gen, going into the next. As for PS I wouldn't be so sure about upgrading. If PS was planning on a single SKU, or multiple with minor storage differences, and they felt strongly the MS multi performance SKU leaks were likely to happen, they very well could change plans and have a cheaper model as well. Maybe, maybe not. It could be simply to keep MS from having the entire affordable next gen market to themselves. Now even if PS did plan a cheaper SKU from the start as well, they can hope for people to upgrade all they want, if you can only afford $199 period, a $299 model doesn't help now or for the next few years.

While they've sold plenty of XB1X models, they may even end up somewhat of a rarity if XB drops a low end SKU next gen. I would have to imagine MS will just end XB1X production altogether by next gen launch at the latest. Whether the SKU is 4TF or 6TF, XB1X wouldn't be necessary anymore. The ports for it will be interesting assuming that even though it's GPU will be capable enough, how much will the CPU's differ? It shouldn't matter too much anyway since PS4 and Pro should get strong support for a couple years, which means anything jaguar related shouldn't be too much of a problem for the first while.

PS2 and Wii are last time we had consoles around $99. The 2DS is cheap as well but that mostly a vehicle for selling Nintendo games and has very limited capabilities.

Your argument is really MS should lower their price, but I don't believe MS or Sony are interested in a price war. Sony kept the PS1 and PS2 very competitively even while dominating. In theory they could grow their userbase further and hurt Xbox with a PS4 price cut, that's what old Sony would do. However, if there is a price war then both companies lose money, so we got a stalemate. I feel that's why 7th gen consoles stayed expensive.

Ideally, the Xbox Lockhart should be powerful enough to phase out X1X. Keeping the X1S on the market only makes sense due to its potentially lower price. If Xbox X1S and Xbox Lockhart only have like a $50 disparity, then kill off the X1S quickly.

We also had a $499 and $599 PS3 and then a $399 PS4.

I'm just saying the reason PS isn't lowering the price is mostly because they don't feel the need to, not that they can't. The fact that MS is doing so and by considerably less, with games included, means PS is selling enough and making enough, they see no reason to lower the price. However, PS knows they can't hold that price forever, and they also would like to keep making money on the hardware for as long as possible, so creating a PS4 SS makes sense. When sales finally start to drop off consistently, they will have a cheaper console to be able to drop the price and meet all of their targeted goals going forward.

PS isn't worried about a price war, if anything MS is, because when PS4 drops in price, it will likely lead to an XB1S(ADE) price drop, less sales, and less profits. MS is also indirectly influencing PS to drop PS4 prices by offering the SAD edition for $50 lower than the XB1S msrp, which is the same as PS4 now. Prices have to be dropped to continue momentum or to compete, and while PS is willing to give up a little bit before they budge, they won't let sales slip too far without doing anything about it. As for 7th gen, you have a point, considering how expensive PS3 was to manufacture. A price war would hurt PS then and MS wouldn't mind keeping their prices higher than they would otherwise, because it would mean more profit for a time. Until of course sales started to decline because that market had become saturated, so then prices would need to be dropped regardless.

That expensive manufacturing problem doesn't exist today due to the hardware used in both consoles this gen, so the only market factor holding the PS4 price up so high is PS4 sales momentum. When that momentum continues to slip as it has been, PS will eventually lower the price, new model or not. As long as companies see worthy potential growth, they will go after it, and $249 and $199 will no doubt lead to continued growth in sales for PS4 hardware, with lower profits for each one of those sales, yet higher profits overall at the end of the year. With PS5 likely a year away, PS isn't going to allow the momentum they've built up since 2013 to dwindle and hinder their next gen launch.

The problem I see with killing off the XB1S, is that all MS would have left is the SAD edition. That console requires decent internet, and the lower you have to drop the price to sell it, the less likely those buyers are to have worthy internet to use it. It's right back to Mattrick all over again. If you don't have good enough internet, then buy a 360. If you don't have good enough internet for the SAD edition, then buy a PS4 basically.