CVG

Microsoft and Sony are both waiting on the retail price of the Wii U to gauge whether they should reduce their hardware RRPs, a Wedbush Morgan analyst has claimed.

Games industry expert Michael Pachter believes there will be no price cut on Xbox 360 or PS3 in the short-term if Wii U retails at over $300 (around £200).

"I think both Microsoft and Sony are waiting to see Wii U pricing. If it is over $300, they don't need to cut." Pachter told CVG.

"When Nintendo makes a move, they [Sony and Microsoft] will respond accordingly," he added.

Prior to the E3 event in Los Angeles this week, price cuts for the PS3 and Xbox 360 were a common discussion within industry circles. It was also suggested, if less frequently, that the PlayStation Vita would undergo a discount in order to stimulate sales.

Pachter claimed that such a discount would be premature.

"I don't expect a Vita cut till November at the earliest," he said, "and probably not until February".

Sony has dismissed suggestions that PS Vita's RRP will be cut in the short-term. The console had a bright launch but since then sales have fallen sharply.

SCEE chief Jim Ryan told CVG this week that "we're not at the stage of thinking about price cuts".

http://www.computerandvideogames.com/352767/pachter-xbox-and-ps3-price-cuts-will-depend-on-wii-u-rrp/

Correction:

There won't be a Sony price cut whether the Wii U is $200 or $500. They simply cannot afford to do a price cut and there is no point anyway with the PS4 expected in the following year.

Microsoft on the other hand can afford to do a price cut, however they see the Xbox division as a profit maker. They will only cut the price if they are forced to or if cutting the price could realistically be expected to increase profits. As the late entry gamers suck at buying games I would count on them being less profitable and hence only think that the former reason applies.

Even price points become movements in the war for control of marketshare at this point.  It used to be expected you would end up announcing price at E3, for a system to come out.  But now that causes a reaction by your competitors.  It is now like they want the others to make a move, and none will.  Nintendo also isn't trying to push price point for interest, but the two screens and asynchronous play.  Nintendo is likely wanting to get Microsoft and Sony to do their bundles and lock in at a price, before they do anything.  Add in also that no one wants to do a price cut.  You cut price, your competitor also cuts, and you offset your advantage.  Heck, Microsoft and Sony don't want to end up releasing a new console either, and want to stall as much as possible, because that is bleed ink.  More they delay on this, though, more Nintendo is likely to gain from it, if they clearly show their console in the graphics front.

All this is gamesmanship, which ignores what everyone wants here, some beef to discuss on forums like this.