Since launch, Microsoft and Sony have each cut the price of their console SKUs exactly $100 total in the US.  Sony had to do it only a few months after launch whereas Microsoft was able to wait nearly three full years.  Here is a list of the consoles original prices and their current prices:

Sony

60/80GB model - $599 USD -> $499 USD

20/40GB model - $499 USD -> $399 USD

Microsoft

Premium 20/60GB model - $399 USD -> $299 USD

Arcade/Core model - $299 USD -> $199 USD

(Elite not introduced at launch)

I believe this shows two things:

(1) The public realized the PS3 didn't have the value of a $499/$599 console at launch which is why Sony had to drop the price so aggressively compared to Microsoft

(2) Microsoft has gained very significant mindshare and marketshare over Sony -- ultimately, Microsoft employed more successful strategy than Sony.

What do you guys think?  Sony seems to be price dropping much more aggressively than Microsoft in the US.  By the time the PS3 is 3 years old, will it have dropped $200?

This will not end well. OT, I think your bet with DMeisterJ is safe barring a major adjustment with VGChartz figures

I thought my best last year with NJ5 was fairly safe too, but Nintendo managed to pull a lot of Wiis from their yellow cheek.  You never really know with bets, but it seems like the common trap people fall into in terms of market share is this: "the market share increased 0.1% and therefore it will reach (insert whatever I want to believe here)" rather than looking at the numbers and saying, "wow, the PS3 needs 2 million more sales beyond the standard 1 in 4 of each console sold to reach 25%."

For example, for the Wii to reach 50% by year's end, it needs to outsell the 360 and PS3 /combined/ by more than 200k per month week and yet a lot of people think it can happen.

What does that mean?

Yeah, that's a typo. It should read per week.  And these days, it's closer to 250k.

@ Million
"I think it's unfair that you ignore the fact that the PS3 had/has a much higher pricer point than it's closest rival , if they were equaly or similarly priced then I'd understand that a $200 price drop on the cost of a PS3 show'd microsoft succesfullness or new found dominance. Sony will likely never sell the PS3 below the cost of the XBOX 360."

Why is it not fair? Microsoft did not decide the price point for Sony, Sony did. Their inclusion of the Blu-Ray drive (in support of other objectives) and Wi-Fi is what drove the price up.

I think what is often conveniently forgotten as well is the changing of the PS3 specs that happened in parallel with the price drops. Specifically, along with the 100 dollar price reduction, they basically gimped the originally designed PS3 by removing the emotion engine, effectively removing backwards compatibility (also a cost-savings effort).

The fact that I don't own a PS3 yet, could be used to say that I am 360 biased, and that is a fair, if not completely accurate, comment. But do you refute that any of the things I mentioned above are true? If you agree then what we would disagree on is our analysis of that.

So, on topic, I would suggest that given the original price/configuration of the 360 and the PS3, that the 360 showed it had longer legs at closer to it's original configuration/price. Given it's recent relative decline in sales vs its closest HD competitor I'd also suggest it's price drop was probably a couple months late in coming.

I think the PS3 came out of the gate WAY overpriced. The 360, not so much, regardless how many might argue that the PS3 is a much better value for the money. All 3 consoles are primarily gaming machines, so having Blu-ray is nice for the storage and for those who want a do-all unit, but I personally prefer a standalone unit for watching movies (less power, heat, noise, space, etc.).

I can't speak for the market but as far as i am concened...in late 2006 I was looking for a next gen console. And when PS3 came out at that rediculous price point...with literally no games worth playing, I decided to get a 360.

Otherwise I owned a ps2 up until that point and that was my primary console.

@disolitude

disolitude, off topic, but if I´m not mistaken, I thought you had sold your Wii and gotten a PS3...you even changed your sig, did you change your mind?