I am somewhat disappointed by the lack of economic comprehension present in these forums in regards to console pricing. The facts are paramount the global economy is suffering, and no there is no place immune to global hardship. So do not try to pass the line it has not hit here yet, or will not effect where you live. Does your country export or import goods? Do fellow citizens invest in stock markets, and futures? Do other people in your country use credit during the coarse of doing business? The answer to all of the above is yes.

Effectively when economies suffer a slump the spending threshold of consumers decreases. Effectively the PS3 is actually increasing in price. Whereas before four hundred dollars before taxes was a high, but acceptable price for the console. Four hundred dollars is fast becoming for many a high, and unacceptable price. Especially for an entertainment with far less expensive alternatives.

The problem many enthusiasts are failing to grasp is this. During the holiday season enthusiasts are not purchasing items for themselves. They are purchasing items for others. After all it is one thing to spend four hundred dollars on yourself, and another entirely to spend that much money on a single present for one person. Consumers are simply going to be more thrifty this holiday season, and that is not good for the PS3 or Sony.

The bullish prognosis for the PS3 is just simply unfounded. This economic downturn is not just a blip on the radar the effects are going to be felt for months, or even over a year. This is going to have a lasting impact on the sales of all the consoles, but the PS3 is the console that will suffer the worst. A couple of weeks ago I thought Sony might reduce the price on the console to compensate, but day after day the picture becomes more bleak, and that tells me that Sony probably could not reduce the price no matter how sound an investment it happens to be.

The PS3 will defineltey generate more revenue overall but in terms of Marketshare XBOX 360 is just too cheap to be outsold by the PS3.

Very true, the average consumer is where the larger #s come in as far as gifts go and right now this demographic is "tight" with their money no matter where they live. I feel all Sony can do for the moment is hope for the best and push their exclusives this Holiday season.

The PS3 will never pass the 360 LTD.

US
PS3 costs $400 - sold 58k
360 costs $200 - sold 83k

UK
PS3 costs £284 - sold 13k
360 costs £119 - sold 15k

Eu overall
PS3 sold 73k
360 sold 67k


Its plain as day to see whats gonna happen come xmas, consumers do NOT get cheep come xmas.

I think US will give the 360 a slight edge.

doubt that


and Obama for '08

@AvZeroMkA157

Frugal is a vague terminology, more about mindset then anything else. What is a frugal expenditure to one person is an extravagant expenditure for another. However lets just use some concrete numbers to see exactly where I am going with my conclusions. Last year the average holiday budget was $850. Now given the dire economic situation, and millions of consumers having lost thousands of dollars in investments. I do not think it is out of the realm or realistic expectation that the majority of consumers would curtail their holiday budget by a third.

Don't get worried I will do the math for you. That means the average holiday budget this year would be $580. Now a PS3 will run the consumer $400, and after sales taxes that would run the consumer at a generous five percent $420. That would remaineder $160 for a holiday budget. Include a single game for $63, and the consumer has less then a hundred dollars for all the rest of their holiday shopping.

That makes for a rather thin tree especially if the parent plans to fill stockings, provide clothing, and of coarse take into account the very finicky nature of their children which are notorious for losing interest quickly. Oddly this is a worse spread for consumers then when the PS3 launched to consumers two years ago. When consumers spent $630 for the console, and after purchasing a game racked up an impressive $693 price tag. Even then the consumer still had over $150 left to spend.

This is what I mean in comparison the PS3 has actually lost traction on pricing, and is actually going backwards. Effectively the price of the console has increased, and may actually be more expensive for consumers then when it first launched. Yes the price factor is more favorable, and that may help. However it will not help for as many consumers as it would had the economy not slipped into a recession. Meanwhile Microsoft and Nintendo both have consoles that can survive a now much reduced budget.

The Arcade for instance still leaves over $300 within the budget even with an additional game purchase. The Wii still leaves $265 with the purchase of an additional game. They are not massive drags upon the budget. The surplus is more then enough to fill stockings, buy clothing, and a number of smaller ticket purchases. The consumer can even shop for more people.

I know some will say well the numbers are unflattering, and to that I can simply say this. A five percent sales tax is more then generous. I am not factoring in unemployment. Not only the loss of existing jobs, but the jobs that will not exist due to the thin margins that will be felt this holiday. I also have no way to factor in credit based spending limits, or place a concrete value upon irrational fear. So I feel I did a rather respectable analysis. I did not paint a picture of utter death, nor did I paint a picture of the recession being a microscopic factor in holiday spending.

The bottom line is that the affordability of the PS3 will be a rather large factor in holiday spending. When consumers are bound to spend considerably less then they have in previous years. Let me provide a link to also show I am not producing these figures out of my ass.

http://americanresearchgroup.com/holiday/

So, according to you, Microsoft only sells the 360 Arcade model in the US and UK?