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Forums - Microsoft Discussion - Microsoft working on Price Competition for "PS3 Spring Price Cut"

A PS3 price drop will increase PS3 sales more than a 360 drop will increase 360 sales. People are craving for a $299 PS3. I have at least 2 friends who want PS3's but aren't due to price.



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ROBOTECHHEAVEN said:
sony will lower the price i believe and it might be around either killzone 2 or resident evil 5. they need to do it with some kind of mega game to help increase sales even more than normal. also sony knows with the economy not getting any better anytime soon, either they drop the price soon or agree that they will finish 3rd this gen.

They have Halo Wars around the time Killzone 2 comes out.  But, it's an RTS, I don't see it doing as amazing.  Oh wait it has zomgwtfbbqchickensauceHALOzz in the name).  So this means, RTS = the next Big Genre on consoles O_o...Nah...

Edit: Nah, just messing, it will sell really well, I can see that MS will throw hype and market into it.



  • 2010 MUST Haves: WKC, Heavy Rain, GoWIII, Fable III, Mass Effect 2, Bayonetta, Darksiders, FFXIII, Alan Wake, No More Heroes 2, Fragile Dreams: FRotM, Trinity: SoZ, BFBC2.
  • Older Need To Buys: Super Mario Bros. Wii, Mario Kart Wii, Deadspace, Demon's Souls, Uncharted 2.

There is definitely more to list that I want, but that's my main focus there.

i don't expect sony to drop the price by $100. i want them to, but they can't possibly be ready for this kind of drop.

what would ms do if sony somehow did drop to $299? maybe they'd discontinue the pro and just keep the arcade ($199) and elite ($299).

are there any statistics on the ratio of arcade:pro:elite sold?



chaospluto said:

Aaron Greenburg states that Microsoft believes Sony is going to lower the Price on their PS3 Spring of this year (2009).  Microsoft will be planning for this and will be 'Price Competitive' when Sony does lower the price on PS3.

However, SCEE disagrees stating "not to expect a price cut this Spring" and is sticking to the "Value Added" idea .

via. Kotaku

"The PlayStation 3 will get a price drop in 2009. It just has to if Sony wants the console to keep up, install base-wise. Microsoft's Aaron Greenberg agrees and expects a cheaper PS3 within months.

He tells Edge Online that Microsoft is planning on its console competition becoming more price competitive in 2009. Not really his call, obviously, but failing to plan means planning to fail, right?

"We absolutely expect the PS3 price drop to happen in the next couple of months," Greenberg said, following recent Microsoft sales boasting. "We're frankly surprised it's taken this long. I would expect they'd have to move on price, sooner than later, for sure."

Sony Computer Entertainment Europe president David Reeves disagrees. He says not to expect a price cut this Spring, sticking to the "value added" thing. With PlayStation 3s reportedly getting cheaper to make, we'd expect it sooner rather than later — "no plans" notwithstanding."

Ok, I don't know why, but I feel like maybe'm the only one why actually looked at what was said.  Every one stop, breathe, and RTFA.  it says

"He tells Edge Online that Microsoft is planning on its console competition becoming more price competitive in 2009." 

Greenburg, isn't saying they're going to drop the price.  He's saying Microsoft is planning on its competition (Sony) becoming more price competitive this year.  He is saying he thinks Sony will get closer to their price point, that is all.  How am I the only one who can see this.

 



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At first, I though Greenberg was just talking his usual smack, but it makes sense for M$ to get ready for a price cut by Sony....and while they might not but prices, they can do other stuff to coutner a sony price cut, and with the HEAVY advantage of better finances on their side, they can counter a price cut with no problem....oh like a free $50 credit in EACH 360 sold for a game of your choice.



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You guys need to stop the smoking stuff from under the kitchin sink, if you think MS will cut the price of the Arcade this year. The Pro, maybe. The Arcade, no way.

Someone bust out some iSupply numbers (or anything) that shows us how the Arcade could get a serious pricecut without putting MS in severe financial duress. I think we'd all love to see it and analyze it.



Groucho said:
You guys need to stop the smoking stuff from under the kitchin sink, if you think MS will cut the price of the Arcade this year. The Pro, maybe. The Arcade, no way.

Someone bust out some iSupply numbers (or anything) that shows us how the Arcade could get a serious pricecut without putting MS in severe financial duress. I think we'd all love to see it and analyze it.

I agree the the Arcade is not making MS any money on hardware sales.  I disagree that any 360 pricecut could put MS in financial duress.

 



WiiStation360 said:
Groucho said:
You guys need to stop the smoking stuff from under the kitchin sink, if you think MS will cut the price of the Arcade this year. The Pro, maybe. The Arcade, no way.

Someone bust out some iSupply numbers (or anything) that shows us how the Arcade could get a serious pricecut without putting MS in severe financial duress. I think we'd all love to see it and analyze it.

I agree the the Arcade is not making MS any money on hardware sales.  I disagree that any 360 pricecut could put MS in financial duress.

 

Say that the arcade model is breaking even right now (unlikely, I think, actually).  Then say that the price drops to $170.

 

$30/unit * say "10 million" units sold 2009.  That's $300 million USD.  Heck, if MS dropped the price that low, they'd probably sell 15 million units -- $450 million USD loss.  Stockholders would riot until MS closed their games division after this "successful year" for the 360.  MS would have to pretend it was R&D expense... and then stockholders would riot and ask "why are you pulling a PS3 for the next gen?"

I'm trying to define my definition of "duress" here for you, so you understand why I think an Arcade pricecut is so unlikely.  While MS is very bright, from a strategic standpoint, they still aren't going to have their stockholders abandoning MS stock and putting the company under to support "competitive pricecuts".

If they do anything, they will cut the price of the Pro to $270 or $280.  That's all.

 



Groucho said:
WiiStation360 said:
Groucho said:
You guys need to stop the smoking stuff from under the kitchin sink, if you think MS will cut the price of the Arcade this year. The Pro, maybe. The Arcade, no way.

Someone bust out some iSupply numbers (or anything) that shows us how the Arcade could get a serious pricecut without putting MS in severe financial duress. I think we'd all love to see it and analyze it.

I agree the the Arcade is not making MS any money on hardware sales.  I disagree that any 360 pricecut could put MS in financial duress.

 

Say that the arcade model is breaking even right now (unlikely, I think, actually).  Then say that the price drops to $170.

 

$30/unit * say "10 million" units sold 2009.  That's $300 million USD.  Heck, if MS dropped the price that low, they'd probably sell 15 million units -- $450 million USD loss.  Stockholders would riot until MS closed their games division after this "successful year" for the 360.  MS would have to pretend it was R&D expense... and then stockholders would riot and ask "why are you pulling a PS3 for the next gen?"

I'm trying to define my definition of "duress" here for you, so you understand why I think an Arcade pricecut is so unlikely.  While MS is very bright, from a strategic standpoint, they still aren't going to have their stockholders abandoning MS stock and putting the company under to support "competitive pricecuts".

If they do anything, they will cut the price of the Pro to $270 or $280.  That's all.

 

Thats assuming every single one of those consoles sold is an arcade, and that aparently the people who buy said consoles dont buy anything else for their 360s to offset the loss.

 



Groucho said:
WiiStation360 said:
Groucho said:
You guys need to stop the smoking stuff from under the kitchin sink, if you think MS will cut the price of the Arcade this year. The Pro, maybe. The Arcade, no way.

Someone bust out some iSupply numbers (or anything) that shows us how the Arcade could get a serious pricecut without putting MS in severe financial duress. I think we'd all love to see it and analyze it.

I agree the the Arcade is not making MS any money on hardware sales.  I disagree that any 360 pricecut could put MS in financial duress.

 

Say that the arcade model is breaking even right now (unlikely, I think, actually).  Then say that the price drops to $170.

 

$30/unit * say "10 million" units sold 2009.  That's $300 million USD.  Heck, if MS dropped the price that low, they'd probably sell 15 million units -- $450 million USD loss.  Stockholders would riot until MS closed their games division after this "successful year" for the 360.  MS would have to pretend it was R&D expense... and then stockholders would riot and ask "why are you pulling a PS3 for the next gen?"

I'm trying to define my definition of "duress" here for you, so you understand why I think an Arcade pricecut is so unlikely.  While MS is very bright, from a strategic standpoint, they still aren't going to have their stockholders abandoning MS stock and putting the company under to support "competitive pricecuts".

If they do anything, they will cut the price of the Pro to $270 or $280.  That's all.

 

So you think they would sell 15million Arcades and nothing else? So their software sales would plummet as well? How does this work exactly?

 



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