Yes, I know you're sick of PS3 price cut threads, bear with me.

We can assume that the 360 will continue to outsell the PS3 until there is either a price cut, or a new SKU for the PS3, meaning that it will outsell the PS3 for the start of 2009.

My question is, is there anything MS can do to counter the huge boost that the PS3 will get from the price cut.

I can see MS having the following options

1) Do nothing - the PS3 will start to narrow the 360's lead, but perhaps MS doesn't need to do anything

2) Counter with a price cut - this would be very effective, but I doubt MS would do this, they aren't making all that much profit as it is. Although if the PS3 price cut isn't until September or so then MS could well do it.

3) New SKU's - Seems like a good option,

boost the arcade to 512 mb internal storage, maybe even 1 gb

Boost the core to 120

Boost the elite to 250

That said, this wouldn't have to great an effect, but it would stop the 360's sales from dipping, and maybe limit how well the PS3 does a bit too

Edit: A slimbox could completely negate a PS3 price cut, but who knows if MS will have it ready in time, and they might want to hold that back for later

4) Announce 1st party exclusives they've got under wraps - MS have started announcing games closer to release date, so they no doubt have a few ready to announce

5) Moneyhat a 3rd party game, and announce that it's coming to 360

FFXIII in Japan

FFVXIII

MGS4

MGS5

Kingdom Hearts

GTA5

Are probably the biggest games that they could get. That said, I think the first 3 will remain PS3 exclusive, MGS5 mightn't come out this gen and the other two will likely be Wii exclusive and PSwii60 multiplatform respectively.

Anyone else think that MS have something prepared for when the PS3 gets a price cut?

Oh yeah, I completely forgot about the slimbox, if they could time that to release at the same time as a $50 PS3 price cut, I suspect the 360 could stay ahead in weekly sales

I'm guessing they'll cut all models by $50 once they finish the ''valhalla model''. In any case, they wont do nothing.

first post!

If they come out with a slimline Arcade with 512mb-1GB of internal storage still at $199 I would buy it, and that is saying something as I never buy Microsoft products (save Windows).

A slim version would be "easiest" to counter with imho.

about GTA 5 though, I doubt T2 would say yes to this, unless paid a HUGE amount, seeing how they have not exactly been raking in the money, even with the sales from GTA 4

Ooooh, a slim 360 would be sweet. It would have the same effect as the slim PS2 that boosted its sales big time. And it would certainly hurt the PS3s potential sales were it to be released around the same time.

On the other hand, if Sony released a slimmer PS3 with a price cut, it would totally up their sales.

I just love speculating about this gens console wars.

A slim xbow now, to me, would seem like using your nitrous early in a drag race :p

I think sometimes people still believe there is actually a plausible, winnable war betwen MS and SONY. There isn't. Nintendo is in the strongest position in the industry and is extracting "Nintendo style" profits, now based on much higher sales.

SONY (and MS) have to look at "the GameCube approach" now and sustain themselves profitably until the next initiative (next gen). Let's face it, due to decisions made years ago, SONY had to either bleed money, or entirely fall in market position. The business reality now is that HD games cost a lot of money to make, and the potential market (owners of either HD system) is looking to be lower than required to be profitable. Most companies have moved to support both in order be profitable.

So, Fall 2008, if SONY lowered their prices (and lost another TON of money), they would not have affected Nintendo's sales (a lower priced 360 hasn't affected Nintendo), and would not likely have secured more 3rd party exclusives (Microsoft hasn't with their "higher than PS3" sales.) Ultimately, PS3 owners are just as good off, SONY is better off for 2008 with lower sales. You can say the same for MS, except a better positioned design decision (HD-less model) allows them a lower priced entry. Good for MS, good for 360 owners.

For 2009 and a scenario where a lower priced PS3 outsells the 360? I suspect MS will take a similar "more profitable route", as just selling more consoles than SONY for second place is only a concern of fanboys.

A slim x360 could be the answer in the short term...while a price reduction in time for next christmas could counter the PS3 price reduction in the medium/long term.

Anyway I don't think that a price cut alone could be the definitive move that turns the tide in favour of the PS3 as in my opinion MS could afford a price cut on premium and elite skus even now provided that the price for a 60/120 HD is much less than the price difference between the Arcade and the Premium/Elite...in other terms Sony can't win the war on the price alone as MS could answer quite promptly on the same field.

@ montreal - Yes, we do all realise that the Wii has won, and that's why we don't talk about it's sales very often. It's already accepted that it will blaze bast 50% marketshare, and scoop up lots of money and third party love along the way. But what's the point of discussing such a one sided discussion?

And whilst you are right that Soony are content to Gamecube it this gen, I do not believe Microsoft are. Their goal with the xbox was to establish a breach, their goal with the 360 was to poo all over Sony. They are making a small profit, and will likely keep the pressure on Sony, trying to force them to do something rash