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Sony is not worried about Xbox 360 price cuts photo

You already know that as of September 5th, today, Xbox 360 console prices have been cut across the board. The $199 Arcade bundle has received the most buzz, with its pricing coming in below the Wii's price point. Should Sony, with their $399 console, be worried about this?

They aren't, or so they say. Julie Han of Sony's corporate communications tells Gamasutra: "We'll obviously see the natural lift [in sales] with the price cut -- but how sustainable is that in the long term?" 

"We're really confident that consumers are making choices driven by value," she says, "and we know PS3 offers that value across the board, with the built-in Blu-ray player the broadest and deepest software lineup in the industry, with LittleBigPlanet, Resistance 2, Motorstorm... we're quite confident our holiday sales will be good."

With the US economy in the state that it is in, you can't help but think that these lower priced systems will be more popular than another that costs twice its price. Sony hopes that people will think about investing in their ten-year strategy with the PS3. 

"With the recession, as people are... on tighter budgets, they're going to be much more conscious of how they spend their money," says Han.

Should Sony be worried? Or should they stick to their guns now that they've finally hit their stride?


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52 comments | showing # 1 to 50

F Whipple's Avatar
F Whipple at 09/05/2008 10:38
I think they should lower prices as well. That way it won't hurt as much when I buy one
Clance's Avatar
Clance at 09/05/2008 10:38
The 360 is cutting way too low, way too early in it's "life cycle" - which could be over too early. Too early.
Holyetheline's Avatar
Holyetheline at 09/05/2008 10:40
lol... PS3 and their 5 good games.
Jim's Avatar
Jim at 09/05/2008 10:41
they've gone from #1 to last spot... so probably maybe they should be a little worried... maybe?
falinter's Avatar
falinter at 09/05/2008 10:43
hey when did you guys start putting the __ minutes ago at the end of the headline:

Dale North09.05.2008 10:40 (19 minutes ago)

I could have swore it wasn't there when I left for work this morning.
byrc's Avatar
byrc at 09/05/2008 10:45
What stride? Ps3 has definitely hit something, a brick wall. As an old sony fanboy I'm sadden by how much they are sucking this generation, this may be the reason I hate this current generation of games.

I owned both systems, my 360 died, and ps3 died

Thankfully 360 was under warranty and I got it fixed. My ps3...no warranty and I have to pay 200 bucks to fix it. The question is...wtf do I want to play? THERE IS NOTHING.

Right now the only good game is Tales of Vesperia which happens to be a 360 exclusive. Yeah I could fix my ps3, but for what? I can easily play silent hill 5, dead space, far cry 2, fable 2, Resident Evil 5 or any of the other possibly shitty games on the 360.

Is there a reason I should pay 200 dollars to fix my ps3?

I don't think so, at least for right now.

Heck the only reason i'm really pissed is because now i have to either fix my ps3 or buy a ps2 to play Persona 4 this winter. Yeah I had a ps2, but I gave it away after i got my ps3, (no reason to keep it since my ps3 has BC).
Clance's Avatar
Clance at 09/05/2008 10:51
I love my PS3, I think t's line-up is kicking 360s arse this coming year...

Byrc, that's a shame, you must be the first guy I've heard complain of a dead PS3.
J03yyz's Avatar
J03yyz at 09/05/2008 10:54
"We're really confident that consumers are making choices driven by value," she says, "and we know PS3 offers that value across the board, with the built-in Blu-ray player the broadest and deepest software lineup in the industry, with LittleBigPlanet, Resistance 2, Motorstorm... we're quite confident our holiday sales will be good."

I lol'd
funran's Avatar
funran at 09/05/2008 10:55
I agree that they are cutting prices too fast into it's life cycle, it makes me really feel that we will see the new xbox even quicker than we imagined.

On the price cut though, 200 for a console without a HDD, Wireless, Memory Card isn't really practical. Live is hands down Xbox's greatest feature and downloading videos, demos, additional content is impossible without a HDD. Even if the 200 bundle comes with a memory card, that will let you save some games, and maybe download 1 or 2 demos / xbla games. The 299 is the better choice I think, which makes it pretty comparable with the ps3 considering for 100 more (399) you get wifi, bigger hdd, bluray, and online is free. In the long run the PS3 is a good investment, because even if you purchase a cheap 360, you'll still be paying a few hundred extra just to get the stuff you need.

Hdd are not cheap, near a 100 for just measly 20 gigs, and their wifi adapter for some fucking reason costs 100 as well. Just with those two accessories catches you close to the ps3, at least in price, but you dont get a HD player.

Seriously, Holyetheline, you're gonna play the "not enough good games card", really only 5 good games? Lets say were only talking exclusives.

Uncharted
Warhawk
Metal Gear 4
Ratchet and Clank
Resistance
Disgaea 3
Gran Turismo 5: Prologue
Heavenly Sword

Not to mention several games coming out in the next few months (SOCOM, Little Big Planet). Along with the non exclusives, which most big titles are across both systems.
MaxVest's Avatar
MaxVest at 09/05/2008 10:56
It's definitely going to hurt them in the States. And as to the "sustainability" of the 360 price cuts -- how long, exactly, does Sony think it has to catch up?

But they know this, and are just spinning BS as they decide whether or not they can follow suit in some way. The HDD upgrade won't take the place of a $100 or even $50 price cut to most consumers.
CHU BOI's Avatar
CHU BOI at 09/05/2008 10:57
Puppy!!!!
CHU BOI's Avatar
CHU BOI at 09/05/2008 11:00
Don't you love how every Sony article comes with a bonus Listwarz free of charge. Do not want.
Shin Oni's Avatar
Shin Oni at 09/05/2008 11:02
Value? Sony has Value?

you won't have this value you speak of until you make all PS3's made in the future PS2 compatible.

at least the 360 is TRYING to make BC there...
BlindsideDork's Avatar
BlindsideDork at 09/05/2008 11:03
Sony doesn't need to be worried. Aren't their sales fine? The 360's sales have kind of died off though.
Danmartigan's Avatar
Danmartigan at 09/05/2008 11:07
they forgot to mention the 4D
Shin Oni's Avatar
Shin Oni at 09/05/2008 11:08
I think the PS3's sales have picked up. but only cause people are pretty much forced with the options there.

I still get people wanting a 80 gig BC and pretty much won't buy it. But then the people who want it for blu ray basically shut down any other thought. I expect about 3 more PS3 SKUs to hit the market after this holiday.
World Eater's Avatar
World Eater at 09/05/2008 11:10
Broadest and deepest software lineup in the industry? Tell me he didn't say that with a straight face.
jonnybryce's Avatar
jonnybryce at 09/05/2008 11:11
Price goes down, demand goes up.
Price stays the same while competitor's price goes down...well, you do the math.

They're right. PS3 is the best value but that's not the whole battle. 360s sell. Despite it being a lesser value, they've been selling in the face of the PS3. A lower price for 360 doesn't mean people won't care and go get PS3s because they're better values, it means gamers can now join HD next gen goodness for $200. That's a great value in itself.
coffeesash's Avatar
coffeesash at 09/05/2008 11:15
They're not worried in Europe cause there's no Xbox 360 cuts here, they're all just as big rip off merchants here.
Redzie's Avatar
Redzie at 09/05/2008 11:16
Dale just used another post as an excuse to put up a pic of a corgi.
dronkmunk's Avatar
dronkmunk at 09/05/2008 11:20
"the broadest and deepest software lineup in the industry, with LittleBigPlanet, Resistance 2, Motorstorm.."

HAHAHAHANO
Dale North's Avatar
Dale North at 09/05/2008 11:21
redzie knows whats up
OutrageousToob's Avatar
OutrageousToob at 09/05/2008 11:25
I have a PS3. I like it. I like it a lot. It has many games I like, I love the built in Bluray player, I prefer the controller, it feels like a higher quality piece of hardware, and I like the way the game cases look on my shelf.

It has no RPGs at the moment though... I'm going to buy a 360 soon to get my fix.
TrailerParkJesus's Avatar
TrailerParkJesus at 09/05/2008 11:27
"With the recession, as people are... on tighter budgets, they're going to be much more conscious of how they spend their money," says Han.

That doesn't mean people will be more likely to buy PS3s. More than anything they'll be more likely to get the 360 because it's cheaper. Silly Han.
Gameboi's Avatar
Gameboi at 09/05/2008 11:33
Love me some PS3, but even I know that price cuts make a difference. Wise is Microsoft.
Y0j1mb0's Avatar
Y0j1mb0 at 09/05/2008 11:35
I love poor people who can't afford all the systems argue over petty shit like sales of consoles... LMAO.
Blind assassin's Avatar
Blind assassin at 09/05/2008 11:37
Sony's situation is pretty much a total mess. It's not that they've done anything atrociously wrong or produced grossly inferior hard/software but they underestimated consumer cheapness and their competition. Given how much I love my PS2 I find it sad to see the PS3 floundering this badly but I was more sad to see the Gamecube floundering and the success of the Wii makes me more happy than PS3 success would.
funran's Avatar
funran at 09/05/2008 11:38
ps3 has been outselling the 360 most of the year, i dont see that changing.
rel123's Avatar
rel123 at 09/05/2008 12:03
gran turismo: not-nearly-finished-yet-logue
funran you mentioned a demo in ps3's list of 'awesome' games.
KGBrAm's Avatar
KGBrAm at 09/05/2008 12:10
''the broadest and deepest software lineup in the industry, with LittleBigPlanet, Resistance 2, Motorstorm... we're quite confident our holiday sales will be good."

lol...wut?
CelicaCrazed's Avatar
CelicaCrazed at 09/05/2008 12:25
MS can afford price cuts since they'll just nickel-and-dime you with their online service. But I see Sony going for a price cut by Thanksgiving.

Oh and NHL 09 in 6 days!!! :D
Aex's Avatar
Aex at 09/05/2008 12:39
MS has their eyes on America, Sony has their eyes on the World. This probably explains why Sony isn't too worried.

Personally, if I was Sony, I wouldn't be too worried about this price cut either. Now, I wouldn't be stupid enough to think it wouldn't provide any sales boosts to MS, I just don't think it would be significant enough to worry about.

Tho, if Sony finds a need to combat it for the Holiday season, they can just do what MS did 2 years ago... $100 Instant Rebate. Temporary Price cuts pull far more interest than permanent ones.
Primo's Avatar
Primo at 09/05/2008 12:42
I want God of War III and then I can die a happy man.
Max Power's Avatar
Max Power at 09/05/2008 13:07
funram:Wireless

I really don't think your base arguments are unreasonable, other than I really don't care for the games on your list (well, I wouldn't mind playing Uncharted and LBP). But regarding the lack of out-of-the-box WiFi of the 360, I've heard that so many times now and it just baffles me every time. Do you people carry your consoles around the house all day long? What about just getting an old-fashioned CAT5 cable? It's more stable, much easier to set up, and in most cases faster (eg. when you're streaming content from your PC). If I had a PS3 I'd still rather hook it up via cable rather than wireless.
sexycommando's Avatar
sexycommando at 09/05/2008 13:07
*ahem*

The US economy is not in recession. In fact the GDP grew 3.3% last quarter. Can we please stop this recession fear-mongering already? The only reason people keep trumpeting it is because this is an election year.
faultymoose's Avatar
faultymoose at 09/05/2008 13:15
The cost for 360 doesn't stop at the point of sale. Like Funran said, many of those 'optional' extras are in fact necessities if you want to take advantage of some of the best features of the consoles.

And we all know microsoft has a hardon for micro transactions.

You take a base line 360, then add the HDD, a WiFi adaptor (less in demand than the HDD) as well as XBL subscription, and suddenly the price point is less appealing.

That said, XBL shits all over PSN, and PS3 currently has a measly selection of truely good games. On the flip side, PSN is free, the downloadable games are cheaper, and imo the exclusives are far more interesting.

Halo 1.3 did about as much for me as Halo 1.2 and Halo - a big, fat, "THIS is a flagship title?!". Halo MP is fun though, but I play Warhawk way more.

~shrug~

If Sony can get developers interested enough to release a quality game every 2 - 4 weeks, I'll be ecstatic.

Right now, though I forked out the cash, I don't see any major reason that either system is a must have.

Currently the best games on 360, I'd rather have on my PC (DAMN YOU EPIC AND YOUR 360 GEARS2 EXCLUSIVE!).

And the best games on the PS3 are perpetually awaiting a release date.
faultymoose's Avatar
faultymoose at 09/05/2008 13:20
ADDENDUM: Bluray does look totally hot on my HDTV though :O
mix's Avatar
mix at 09/05/2008 13:53
I like my PS3.....

That is all.
Trev's Avatar
Trev at 09/05/2008 14:05
@max power
My wireless router and cable modem are by my PC, so it can plug in. It will take at least a hundred feet of cable to stay to the baseboards to go between there and the living room where my tv and consoles are located. While the PS3 and Wii (the WII has it) both wirelessly connect. The 360, even with its focus on online gaming and premium service, requires a cable where the other consoles do not? To really twist the knife, the adapter is the cost difference between a 360 pro and a 40(soon to be 80)GB PS3, which would be like getting a wireless adapter with a blu-ray addon taped to it for the 360.

Selling the adapter separately isn't that bad, but it shouldn't cost $100. Maybe $20. That's how much it cost me to buy a router, install DDWRT and have a wireless bridge with more functionality and I still think it should be in the box for $0.
Dan CiTi's Avatar
Dan CiTi at 09/05/2008 14:29
Sony will start dropping prices a ton when the slim comes out and/or once inside revisions are made(like smaller chips[which happened recently], faster BD drives, and maybe even putting in EE chips again).
Max Power's Avatar
Max Power at 09/05/2008 14:33
@Trev

Fair enough. I absolutely agree that if Wifi is not included, it should at least be available at a reasonable price (which 100 €/$ is not). It's just that, maybe since I'm an old school PC nerd, I'd use an Ethernet cable anyway. Also, with the restrictions on Wifi power output in the EU (maybe just in Germany, I have no idea), in most cases it would be more problematic crossing three or four walls with Wifi than just drilling a few holes and setting up a cable link. Btw, another alternative would be powerline Ethernet, which is just around 30-40 bucks for up to 200 MBit/sec.

Bottom line is, for me personally the calculations regarding 360 and PS3 SKUs work out differently (and I suppose many potential customers share my rationale), as I don't need WiFi or Blu-Ray, for that matter. Consequentially, for me it's 250 Euro for a complete SKU, or 400 Euro for the competition. Most people I know that are on the fence about getting a HD console have similar reasoning.
mr spooky's Avatar
mr spooky at 09/05/2008 14:43
new model ps3 and price cut.
Syn's Avatar
Syn at 09/05/2008 14:51
The fact that we have to run a cable from the computer, all the way upstairs to the 360 is a pain in the ass, the PS3 just connects on it's own and so did the Wii before I axed it. The only time we even touch the 360 anymore is when someone gets an Oblivion itch. I'm not excited about Infinite Undiscovery because it looks like it's going to be a movie with intermittent interactive battles, and pretty much all the other games I want are multi-platform.

The ONLY downside is that one of my friends that I don't have the opportunity to talk to much in real life only uses xbox (that silly girl!) and sometimes I gotta jump on there to talk to her.
brainderailment's Avatar
brainderailment at 09/05/2008 15:15
Breadth and Depth does not mean quantity. Get a life people.

Sony should be worried in the states at least, you can currently buy 2 360s for the price of one PS3, although you won't be getting any features with them, the fact still stands.

Also, I lmao with Y0j1mb0 on this one.
funran's Avatar
funran at 09/05/2008 15:17
@rel123, fair enough Gran Turismo is just a demo, an exhaustive demo (that i dont really care about) but a lot of people do. Either way, my point is that even if you and me don't like all the same games, those games I listed are AAA titles, and the general population are going to enjoy them.

On the WiFi issue, I have a ps3 and i only use cat5, but the option should be there. Stupid little WiFi dongles at walmart cost like 20 bucks for a PC, why the hell can't Microsoft sell their dongle for 30, or even 40 not freaking 100 bucks. Same goes for their HDD, when I worked at gamestop (been a year) a 20 gig microsoft HDD cost 100 brand new, and was the only option. This might have changed since, but the fact is if you buy an Arcade 360, you're gonna need a HDD if you're a gamer. You'll miss out of xbox's most important features. Also wanting to mention that you can buy ANY laptop sized HDD off of newegg, wherever, and pop it into your ps3 and get as much HDD space as you want, and in general you could get a lot more gigs out of 100 if you went that route.

My problem with the Arcade is that it's now used to compare itself as the "lowest priced current gen console". When in reality buying that model will only cost you near the same amount as the 299. Most gamers are going to weigh the value they get in a system before buying it. How many people here want or have bought an Arcade bundle? Their aim is to the "non-gamer" crowd, this price drop is against the (now more expensive) Wii. I mean, Sony could release the "PS3 Arcade Pack" and take out the HDD, WiFi, keep the blu ray and sell it for 300 but why would anyone buy it? Paying 100 more gets you the full thing, and you dont have to worry about buying it later.
wonky360's Avatar
wonky360 at 09/05/2008 15:26
Man complains because most popular HD console is now very affordable.

Man is an idiot.
Syn's Avatar
Syn at 09/05/2008 15:35
Except that the affordable model is a waste of any intelligent gamer's time
Too Much Coffee Man's Avatar
Too Much Coffee Man at 09/05/2008 15:40
I think most people here are missing the point. The arcade isn't meant to compete w/ the PS3; it's competing w/ the PS2. People who buy (or have bought in the past couple years) the PS2 & dont care about DLC or wireless controllers. It's still $130 + $25 for a memory card. Those people might see the 360 arcade as a next-gen bargain for only $45 more. Remember, almost half of U.S. homes dont even have broadband yet.

The people who were going to play on LIVE! will see the pro as $50 less & still a deal.


@Danmartigan

hahahaheheahhaaa

@sexycommando
GDP is not an accurate measurement in this case. We're not talking about a depression, it's a recession. Highest unemployment rate in 5 years, the housing bubble that burst, the credit squeeze, fuel prices, the enormous national debt that's trying to be lessened by cutting federal funding which raises other costs of living. Cost of living in general & available personal income is what measures a recession. It can be argued to be a shallow one (or deep depending on how many of said issues directly effect someone) but it's certainly one.

@Syn

You can do what Trev suggested; buy a $30 wifi router & put on DDWRT, set it up as a client bridge & hook it to your 360 via ethernet. bam wireless for $30. note: check fatwallet.com's hot deals section. search for DD-WRT or router & see if it's on the list of supported
Blind assassin's Avatar
Blind assassin at 09/05/2008 15:56
Too Much Coffee Man beat me to it. Although he did neglect to mention that pretty much every other significant economy around the world lost between 1% and 8% on their stock exchanges. Obviously this translates into less foreign investment and possibly withdrawal of some existing investment. The future isn't very certain right now for what this exactly means but no one with any sense is trying to burn though their life savings to capitalise on upcoming financial investments.

Also, a stand alone quarter doesn't mean anything at all. I'm pretty sure that America posted at least one positive quarter in the '30s.
DemonEyes23's Avatar
DemonEyes23 at 09/05/2008 16:45
While a price cut probably wouldn't hurt lets remember that this is the arcade xbox360 which doesn't even sport a harddrive and is a gimped console overall lets hope that those actually looking to buy a 360 would turn towards the other more fully functional versions which are of course no great deal cheaper than a ps3.
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