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EEDAR: Xbox 360 is in a 'tough position' following price cut photo

So, the Xbox 360 Elite dropped in price (while the Arcade price rose in the UK). Cue the trumpet call of the market analysts, with EEDAR being the first to weigh in and provide insight as to what this means for the industry. Unsurprisingly, EEDAR notes that Microsoft is responding to the PS3 price drop, but also adds that the "$299 sweet spot" might not be a advantageous to the company as one might think.

"Whilst the Xbox 360 and PlayStation 3 are now equals at the $299 price point, technologically the Xbox 360 is not at the same level as its Sony competitor," explains the analysts. "This puts the Xbox 360 in a tough position where it is outmatched in terms of hardware capabilities at $299 and the Wii remains alluring to casual and price sensitive consumers at $249.

"Over the next year Microsoft will most likely reposition the Xbox 360 Elite closer to the $249 price point to both pressure Sony and attract potential Wii consumers."

EEDAR also believes that Nintendo should be preparing for another future 360 price cut: "Nintendo should drop their Wii console down to $199, not because the current Xbox 360 and PlayStation 3 price structure poses a threat; rather, because they will eventually pose a threat. Nintendo's strategy should be to capture as many consumer dollars as possible while their competitors are still weak in their offerings to the casual audience and price sensitive consumers."

Quite a few logical things being said here, especially with regards to Microsoft's position. The Xbox 360 Elite does offer less out of the box than the PS3, and now at the same price. That doesn't even account for the yearly subscription fee users have to pay in order to give the 360 the same online connectivity that the PS3 offers for free. At $299, the PS3 is the better deal. However, the stigma that the PS3 has earned as a pricey system without AAA games (unfair or fair as that may be) and the endless blundering of Sony's PR department might see the 360 remain in the lead for quite a while.








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Jim Sterling serves as reviews editor for Destructoid.com, head of the Podtoid podcast, and produces a number of news stories, original features, one-of-a-kind videos. With his passionate argumentative style, controversial opinions, harsh delivery, and dedication to brutal honesty Sterling is a name that you can't help but recognize. Likes PS2, iPod Touch, Silent Hill 2, Metal Gear Solid, Dynasty Warriors 3 Meet the rest of the team



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53 comments | showing # 1 to 50
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matrixdude171's Avatar - Comment posted on 08/27/2009 10:26
matrixdude171
This should be interesting as the holiday season comes up, as the 360 becomes the more expensive console to have.
Niero's Avatar - Comment posted on 08/27/2009 10:26
Niero
Gaydar?
mitDebo's Avatar - Comment posted on 08/27/2009 10:28
mitDebo
Jim Sterling wrote an article that mentions the PS3. Clearly, Jim Sterling HATES the PS3.
Sexualchocolate's Avatar - Comment posted on 08/27/2009 10:29
Sexualchocolate
Indeed.

Moar values.
Retrofraction's Avatar - Comment posted on 08/27/2009 10:31
Retrofraction
it should be very interesting, you know the wii was origanaly priced at $200 at launch but some big retail centers AKA "walmart" black mailed Nintendo to raise it by $50

so yeah it should be very interesting.
StvnSdrbrg's Avatar - Comment posted on 08/27/2009 10:31
StvnSdrbrg
That picture has to be one of the creepiest things I've seen for a bit. Anyway, was there ever a reason Sony didn't tout it's free online more or would that fall under the "endless blundering of Sony's PR department" umbrella?
Usedtabe's Avatar - Comment posted on 08/27/2009 10:37
Usedtabe
@StvnSdrbrg: It's from the awesome 80's flick "Labyrinth" .

On topic: I agree. MS really need to consider dropping the price further, or offering Live for free. Paying to play online sucks ass when it's free on the other system at the same entry price.
Sean Daisy's Avatar - Comment posted on 08/27/2009 10:39
Sean Daisy
Analyststs often speak posterially, but I agree with Jim that Darth EEDAR is right: The PS3 is the newer, more powerful console compared to the 360 Elite. Either Microsoft will do nothing, convinced that their portfolio is better than PS3's and justifies the price, or (more likely) they will drop the price in response.
Chris Carter's Avatar - Comment posted on 08/27/2009 10:40
Chris Carter
@Used
If MS just dropped the cost for Live Gold, and charged UP THE ASSHOLE for everything on it (including Games on Demand, Twitter, etc etc), I think they would lose zero business.

FREE HALEOS OMG
BrainLazy's Avatar - Comment posted on 08/27/2009 10:41
BrainLazy
To be fair, MS still has to face the stigma that ALL Xbox 360's will fail, even though I haven't seen one report of a Jasper failing.

However, the PS3 has a much better value now and MS really needs to drop the price more if they want to stay competitive. Keeping the price as it is will give Sony a huge advantage
EternalDeathSlayer's Avatar - Comment posted on 08/27/2009 10:42
EternalDeathSlayer
Yeah, somehow I can't see the PS3 catching up at this point. I mean, they're about 8 million or so consoles behind.

But anything is possible, of course.
Usedtabe's Avatar - Comment posted on 08/27/2009 10:43
Usedtabe
@Magnalon: Well, they are already charging up the asshole for Games on Demand. I would rather they charge a fee for that Twitter and Last FM shit as opposed to charging for multiplayer. But I'm biased, as I do not use Twitter/Last FM/Facebook at all.
Shadowiii's Avatar - Comment posted on 08/27/2009 10:43
Shadowiii
If they dumped the arcade and sold the Elite for $250 (price of the Wii), I bet sales would skyrocket.
But they won't do that.
They could also make Live free...that would be nice.
Vohaul79's Avatar - Comment posted on 08/27/2009 10:44
Vohaul79
Paying 100$ for an 11.g wireless adaptor still grinds my gears. You can buy a 4ethernet 11n bridge extender for your home and shove it in your 360's asshole for 60$. (I still absurdly have mine lying around anyways)

11.n and Extended wireless range in your home for 60$, or 100$ for a turd looking g. Thanks MS.
Lets not forget paying for live, marketplace jackup, redicky prices on HDD's etc...

The PS3 at 300$ definitely offers more at this point. You'd think at this point MS could at least include the 5cent wireless dongle in the box.
PappaDukes's Avatar - Comment posted on 08/27/2009 10:45
PappaDukes
God I love my PS3. But I would love to have a 360 as well. The recent price cut for the Elite is looking pretty sweet right now.
GoldenGamerXero's Avatar - Comment posted on 08/27/2009 10:48
GoldenGamerXero
It's not all that bad for them actually because both console play to their creators strong points with Sony creating hardware and Mircosoft developing software. So while the PS3 is focused on hardware and has the obviously better system the Xbox focuses on software and has better online and a larger game library.

I hate you all for putting that damned "DANCE MAGIC DANCE" song in my head!
Wozamil's Avatar - Comment posted on 08/27/2009 10:49
Wozamil
I'm curious, does the author believe the PS3 doesn't have AAA games, or that it does? I think most people agree that the lack of quality games statement stopped being a valid argument a long time ago.
Black Nexus's Avatar - Comment posted on 08/27/2009 10:49
Black Nexus
@EDS
Actually their only about 6 million(PS3 was 23.7million ,360 was in the 30 mil range) and this was before the price cut so that gap has probably gotten smaller, so truth be told catching up by early next year wouldn't be impossible all things considered.

But whatever the case I look foward to seeing how this will turn out.
StvnSdrbrg's Avatar - Comment posted on 08/27/2009 10:53
StvnSdrbrg
@Usedtabe Thank you, now I have an excuse to quiet down my friends who've told me to see it. That excuse being my fetish for scary puppets involved in David Bowie related film/television. Usually I'm forced to pleasure myself to a picture of his cameo in "Zoolander" with a crudely photoshopped Ms. Piggy next to him. But "Labyrinth" sounds hot.
accidentprone88's Avatar - Comment posted on 08/27/2009 11:07
accidentprone88
And the $299 price for the 360 doesn't even include the god-awful amount of money you'll spend on batteries for the controller.
EternalDeathSlayer's Avatar - Comment posted on 08/27/2009 11:14
EternalDeathSlayer
@ Black Nexus: Go to VGchartz.com which I am too lazy to link to, then you'll see the numbers: 360 is 31.41 million, PS3 is 23.24 million.

31.41 - 23.24 = 8.17

Not trying to be a dick, just trying to speak the facts and all.

But to be honest, I always wonder how many of those 31.41 million are double or triple dippers, i.e. people who have bought a second or even 3rd console as a backup or whatever in case the one they have breaks.

I am one of those double dippers.

I am ashamed.
hpv's Avatar - Comment posted on 08/27/2009 11:14
hpv
The only reason people think PS3 is lacking "AAA" games is because they assume all cross-platform games are 360 games first. But to be fair, the online capabilities that you're paying for on 360 are a little more than equal to what you get on PS3. At the very least Sony needs to put in the equivalent of party chat to pull even.

Wozamil: Mr. Jim Sterling is paid by the impression (and receives a score multiplier for comments) so he likes to throw in ambiguous flamebait to drive hits. The measure that should actually be used isn't "AAA games" (whatever that means), but exclusive games. Which there are so few of these days it really comes down to whether or not you love Halo and Gears of War or Uncharted and Metal Gear Solid. For my money PS3's exclusives are better and that's where I'd go if I were buying just one. Particularly looking forward over the next 6-12 months.
WarZombie's Avatar - Comment posted on 08/27/2009 11:15
WarZombie
While I normally think analysts are fucking idiots, these guys actually make a whole lotta sense. You ARE getting less for the same price, and knowing how the American consumer's mind works, always wanting the "Latest and Greatest" in everything, means that the PS3 has a golden opportunity right now to catch up with the 360. I also agree that if both of the prices of the two aforementioned consoles were to drop to $249, then that could mean the Wii's lead will start to decrease. It won't be instant, but given enough time, this console race will start to get a lot tighter the more time passes by.
Crunshii's Avatar - Comment posted on 08/27/2009 11:23
Crunshii
@ Wozamil,

the OP just threw that there so he keep the hateps3 title. I mean Jim loves playing KillZone2, not sure how you range from a AA to AAA title, or even one A at that. But that statement I just omitted it out because I know it's a flame bait :)

Now about the price, I don't see how, nor never will, see how people justify buying $200-$300 for a P O S console that has a 50% random death machine. like I said many times before, yea your argument to mine is "They fix it for Free", well you know what? Any other company selling a defective product with such huge fail-rate would have gotten sued the @$$ out of extinction or at least to the point were they are forced to fix their POS to the point is not a 50/50 chance of Bricking.

I don't expect that from a Laptop, a iPhone/iTouch, a game console, a Cell phone, Desktop, ect, No product with such high defective rate should be in the market selling. After that 3 year warranty you are ????ed.
Chin35char's Avatar - Comment posted on 08/27/2009 11:27
Chin35char
I disagree, the PS3 definitely does not deliver the same online experience that the Xbox 360 does. For the same price you get a headset with your 360, but you don't get one with your PS3. Xbox Live has the Party feature which is awesome, it has voice messages, private chats while in game, and way more arcade releases then the ps3 does. Don't get me wrong here, the PS3 online is really great for being free, I just prefer the 360 more. I own both consoles, but I guess that's beside the point. Inb4someonecallsmeafanboy!
EternalDeathSlayer's Avatar - Comment posted on 08/27/2009 11:30
EternalDeathSlayer
@ Wozamil: I personally feel that the PS3's exclusives are the most impressive out of the 3 consoles, but I don't think the public sees it that way.

Halo and Gears of War fucking dominate the charts, and people think that because they're paying for the online that it must be better (which it kind of is IMO).

Sony has a lot of new IP this generation, especially early on. We still don't have God of War 3 out yet. While I applaud them for trying new stuff, I can't deny it hurt them in the early going.

That's just me.

As for Jim, yeah, he's just trying to get his page hits.

I love the man. God Bless him.
Holyetheline's Avatar - Comment posted on 08/27/2009 11:30
Holyetheline
These price drops are getting intense!
Qraze's Avatar - Comment posted on 08/27/2009 11:32
Qraze
too bad sony didn't drop the price to $250. then all hell would have broken loose with nintendo and microsoft hastly changing their plans and prices. too bad.
Jim Sterling's Avatar - Comment posted on 08/27/2009 11:40
Jim Sterling
"I'm curious, does the author believe the PS3 doesn't have AAA games, or that it does? I think most people agree that the lack of quality games statement stopped being a valid argument a long time ago."

I don't believe it's a valid argument to say the PS3 has no games. I never said it WAS a valid argument. I said the PS3 has that stigma, and the stigma is hard to shake off. Whether it's true or not doesn't matter. Perception is everything.
rel123's Avatar - Comment posted on 08/27/2009 11:41
rel123
@retrofraction
Citation Needed
Takeshi's Avatar - Comment posted on 08/27/2009 11:46
Takeshi
I don't care about price drops anymore (since today). In fact I'm getting really tired of it (also since today).

I've shelled out six hundred hard earned Euros for my PS3. It was/is worth every cent. I would never have payed the same amount of money for a 360. In fact I wouldn't even buy it for 250. Don't shoot me, that's just me.
Kaden101's Avatar - Comment posted on 08/27/2009 12:07
Kaden101
Just wait for GT5 & God of War III, they'll sell like Halo & Gears....probably. I don't think Uncharted 2 will do too badly either, but to anyone who's not yet into this gen console gaming Uncharted isn't a know quantity, GT & GOW are.
Black Nexus's Avatar - Comment posted on 08/27/2009 12:15
Black Nexus
@EDS
Don't worry that was only an estimated guess I didn't really know the numbers (though personally I trust VGchartz about as far as I can throw em) but I'm not that interested.

Also don't worry about double dipping on the 360 I did it too(when that 3 year warrenty ran out and it died I...... Well traded the parts in and got an arcade for 100 bucks, so add me to that list of shame too) but now I'm too paranoid to use the thing for anything except exclusives because I swear the thing is gonna die.

But I doubt were the only ones who did that, as the good ol gamestop employee kindly informed me that I was the 8TH arcade trade in that day

And then she proceeded to say" that's so weird isn't it".






I wanna know where they find these people.
Wozamil's Avatar - Comment posted on 08/27/2009 12:15
Wozamil
"I don't believe it's a valid argument to say the PS3 has no games. I never said it WAS a valid argument. I said the PS3 has that stigma, and the stigma is hard to shake off. Whether it's true or not doesn't matter. Perception is everything."

I agree, but, I'll just go with the flame bait theory others posted, lol.
Calamansi's Avatar - Comment posted on 08/27/2009 12:28
Calamansi
both consoles have started to get pretty stale when it comes to games. Fps this 3rd person that, SPORTS! SPORTS! SPORTS! No real Next gen games, just shinier prettier versions of games we have already played with many of the features we have come accustomed to removed. What really gets me is the lack of any good MMO on the consoles. It's a cash cow for Sony and MS and they have yet to even release one title n the genre. Imagine how many units they would sell, a good console MMO would equal a big win for which ever company managed to do it.
aaronf's Avatar - Comment posted on 08/27/2009 12:31
aaronf
The PS3 has always been the better value when you factor in all the extras you have to buy for the Xbox to achieve feature parity. Now the PS3 has a clear advantage, especially considering that the PSN is free.

@Chin35char: Bluetooth headset, $20. You are still spending less on a PS3 when you factor in XBL.

Either way, I own both consoles and I definitely spend more time with the PS3. XBL Arcade may have more titles, but PSN has the better quality titles IMO.
catsithx's Avatar - Comment posted on 08/27/2009 12:32
catsithx
You want to know wins in the end is us the gamers with all these price cuts going around means now some of us who have been on the side lines about buying that 360 or PS3 cause it cost to much. Well guess what it don't any more. With all these price cuts now we think about game that has been on the other system all this time and we been waning it. Now is the time to buy a new system. Also I can't wait to see what incentives they give for the holiday oh it's going to be a fun time during the holidays. Good time for all. *thumbs up*
JamnOnTheOne's Avatar - Comment posted on 08/27/2009 12:39
JamnOnTheOne
"The PS3 has always been the better value when you factor in all the extras you have to buy for the Xbox to achieve feature parity."

Unless you don't have/want/can use the features that PS3 offers then the Xbox is a better value. I wired my house with cat5e (wifi sucks), don't use bluetooth devices, I don't want Blu-Ray, and I'm not handicapped so I can read & follow instructions to upgrade my XBox360 hard drive without buying one of their overpriced ones.
bmart008's Avatar - Comment posted on 08/27/2009 12:53
bmart008
What about the stigma of the 360 being unreliable? And I think that "stigma" of no good games isn't what has stopped people from buying the system, it was the price. Now that it's all fixed up, you'll see it leap ahead of the 360, who in their right mind wouldn't buy the ps3 when you can play the same games, (plus a ton of exclusives) get blu-ray and wifi built in and free online? The answer? - Fanboys.
casesomething's Avatar - Comment posted on 08/27/2009 13:02
casesomething
I really don't think Sony has much of an upper hand. If you have two systems with very comparable graphics, and one has some more advanced hardware (blu ray,wi-fi) and the other is the one that all your friends are playing online with more popular, well known games (see: Halo), and netflix, which would you choose? I'm not trying to favor anyone, but this is the choice that the "mainstream" gamer faces. They usually don't know which console has which exclusives and they are willing to pay more for a system that is more social and that their friends have, whichever console that may be. In other words, I'm trying to say that I don't think differences in hardware factor much in the decision for one who wants a social gaming experience.
Cynical Gamer's Avatar - Comment posted on 08/27/2009 13:07
Cynical Gamer
I'm curious, does the author believe the PS3 doesn't have AAA games, or that it does? I think most people agree that the lack of quality games statement stopped being a valid argument a long time ago

The PS3 has AAA games but they only come out with maybe one or two every a year. I own more AAA games on 360 than my PS3. Ever since I bought my 60gb PS3 off ebay with a bunch of games for 400 bucks, I've only bought one game for it and that was Infamous, which I sold on ebay to a sucker for 50 bucks after I beat it. I thought the game was overrated and kind of meh. Later this year there will be Uncharted 2 and Tekken 6 (which I may double dip buying on 360 as well). Other than that I mostly use my PS3 for watching blu-ray movies. PSN may be free but my experience hasn't been as solid as XBL. You get what you pay for. If you can't afford 3 bucks a month for XBL gold you shouldn't be gaming.
Woverine's Avatar - Comment posted on 08/27/2009 13:47
Woverine
the ps3 having "more features for the same price" will change nothing. Look at the wii. That is basically a gamecube with waggle sticks and is selling like crazy. also all the clueless moms and dads will just see the xbox arcade for $200 and buy that anyways.
donkeykong's Avatar - Comment posted on 08/27/2009 14:19
donkeykong
@woverine,
The Wii isn't a competing product with the 360 and PS3. Someone in the market for a games console rather than a waggle box will be comparing the PS3 to the 360. That said, offering a more robust product for the same price couldn't possibly be bad for Sony, now could it?

Anyway I'm off to read the rest of the comments now
accidentprone88's Avatar - Comment posted on 08/27/2009 14:50
accidentprone88
@Cynical Gamer

Thanks for weeding out who should and shouldn't be gaming. Video games thank you.

Besides, am I only the person here who's consistently had a better time on the PSN? I haven't even been called a "faggot" once, as opposed to the haven for 13 year old, racist homophobes that is Xbox Live. I've found the user base to be consistently more mature and agreeable on the PSN.
Chris Carter's Avatar - Comment posted on 08/27/2009 15:23
Chris Carter
Buy bother you whiners.
Chris Carter's Avatar - Comment posted on 08/27/2009 15:25
Chris Carter
Wow my keyboard fucked up.

Buy both*

Has anyone been having MAD Firefox<--->Destructoid issues lately?
Doos's Avatar - Comment posted on 08/27/2009 15:26
Doos
I agree with the sentiment that the 360 needs to drop about $50 below the PS3.

There's a bundle I've seen that offers an Elite, Wi-Fi and Halo3 for $329.

That's ok.. not great, but better than $299 with nothing but the 120HDD.

I also agree that lowering their Gold subscription would be a good move.
PappaDukes's Avatar - Comment posted on 08/27/2009 15:32
PappaDukes
@Mag - I only use firefox, and I've never had a single issue with it viewing any website ever. Virus scan lately?
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