Should the big 3 game consoles get price cuts?
Should the Wii stick with its current price?
(Credit: Nintendo)More rumors have been surfacing about the possibility of Xbox 360 and PlayStation 3 price drops.
According to reports, the Xbox 360 Elite might be reduced to $299 from its current price of $399. The possibility of a PlayStation 3 Slim is also causing a stir. Sony hasn't made any confirmation that it will, in fact, release the PlayStation 3 Slim, but it could help the company appeal to those who have balked at buying its expensive console.
Rumors have even surfaced that Nintendo might be planning a Wii price cut to maintain price leadership in the market.
But are any of those price cuts necessary? We need to consider each console on its own merit to determine if it's time for a price cut.
Sony
I don't think there's any debating that Sony's PlayStation 3 is in desperate need of a price cut. The console has trailed the competition since its launch. According to NPD sales figures, Sony has sold almost 23 million PlayStation 3 units.
PS3 sales are being easily overshadowed by competitor sales. Sony sold just 131,000 PlayStation 3 units in May. Microsoft, meanwhile, sold 175,000 Xbox 360 units. Nintendo led the way, selling 289,500 Wii units. Similar sales results have been haunting Sony since the console was released.
When we consider the PlayStation 3's value to the consumer, Sony is doing well. It has Blu-ray compatibility, a good lineup of first- and third-party titles, and a really nice online platform. The only issue with Sony's platform is its price.
If Wii sales have proven anything, it's that consumers today covet affordability and fun. The PlayStation 3 provides a nice fun factor, but it's too costly. The 80GB PS3 model is the same price as the Xbox 360 Elite and $100 more expensive than the Xbox 360 Pro. It's $150 more expensive than the Wii.
With a price cut, Sony could finally appeal to those who are choosing cheaper consoles over the more powerful alternative. Money matters--especially in this economy--and Sony needs to realize that.
My verdict for Sony: drop the price.
Microsoft
Microsoft is in a far better position than Sony. Its console might not be leading the way, but it's performing well. Since its launch, Microsoft has sold 30.9 million Xbox 360 units. That's more than 7 million more units sold than the PlayStation 3.
That said, it makes sense for Microsoft to reduce the price of the Xbox 360. Strategically, it puts Sony--its main competitor--on notice and makes the PS3 look even less attractive to cost-conscious consumers.
When consumers go to a store looking for a console with more power than the Wii, they decide between the Xbox 360 and the PlayStation 3. As I noted above, the Xbox 360 Elite is priced at $399--the same price as the 80GB PlayStation 3. If Microsoft reduces its price by $100, which most rumors suggest will happen, it's possible that many of those sales will go to the Xbox 360. And isn't that the goal in the first place?
My verdict for Microsoft: drop the price.
Nintendo
A Nintendo Wii price cut is a different story. Unlike the PS3, the Wii is performing well in the market. So far, Nintendo has sold 51 million Wii units. It's easily controlling the space.
And although Wii demand has slipped lately, the console is still in the lead by a wide margin. To drop the price now wouldn't make much sense.
Nintendo, however, has an opportunity to improve Wii sales by offering more value--i.e., bundling the console with the new Wii Sports Resort and a Wii MotionPlus--without reducing its price. Grouping the Wii with such highly coveted products could prove very enticing for consumers.
My verdict for Nintendo: maintain the price but add value.
What do you think? Should these companies reduce the price of their consoles? Let us know in the comments below.
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Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.
your right its just consumers usually don't see the value in the ps3, they just look at the price and say no
I've had a 360 for a while. and I've NEVER gotten the RROD. Though did have the optic drive once cause scratching.
NO, I'm not a micro$soft or x-box fanboy. I have just found more value in a 360, plain and simple. It's got what I like to play, and has (at least last time I checked) better games for the online/live.
Without PS3 dropping severely in price. It's just not worth the pay-out. Now, give a ps2-backward compatability and lose the idiotic Blu-Ray drive (which alone should drop the cost by a good $200+), and I might consider picking one up. There's still few games I have interest in though, which are Sony-only titles
I think we'll see some more innovative bundles this holiday than previously. I'm all in favor of a price drop. I just don't see Sony doing it. Sony may do some thing to reduce their costs, ala the Slim rumor. But I don't think they've recovered their R&D. Microsoft has already done both, but who's to say if they have recovered from the RROD write-off. Still, if MS could weather another price cut with and especially before Sony, I could see it as shrewd move in this economy. Any thing to expand the base for game sales.
Actually, I could see MS making a play at the economy that they have such a wide selection of low cost titles on the Marketplace that they are cheaper as a platform than Sony. Add in Netflix and there's a lot to do with the system, especially after the fall updating. If they could do a bundle that comes with a few thousand points and a year gold subscription, I could see that doing a lot of damage. Not that the Wii couldn't fend that off, it certainly could. But, I don't think Sony could without first dropping the price.
A $50 pricecut on Wii would put it at $199.99.
At least he appears to have stopped doing the stupid viodecasts.
On what planet is that?
Every topic under the sun has been written about before. That doesn't mean people should stop writing, or stop analysing. Hey doesn't it tell you what this article is about at the top of the page? Why even bother to read it, let alone comment on it, if you don't want to read it in the first place?
Sheesh!
If you dont like what's being written, **** and dont read it. Simple.
kthxbai.
Sony, on the other hand, needs to do something about price. A lot of us PS2 owners were anxious to buy a PS3, but not at $500 - $600; we may have considered it at $399 but they killed BC. Now, we are all waiting for $299 and crossing our fingers that software emulation will be added back so we can continue to enjoy that immense PS2 library when we don't feel like spending $60 on something that gets mediocre reviews. At $299 with BC, I suspect Sony could find themselves with a console shortage at Christmas this year.
By the way, Sony has been running a credit card deal for at least 2 years now: open a sony card and buy a PS3 and get $100-$150. No interest for a year, plus you'd get enough points for a free PS3 Eye as well. I got my 60gb for $350 using the deal.
You must be treating your ps2's like crap if you're on your second one, and it too is dying... I dropped a 50lb tv on mine in a drunken stupor, and it still runs great.
My recommendations to the consoles if they want to blow away the competion: PS3 w/one controller, HD cable included, and 2 games should be $299. XBOX Elite w/ wireless controller, 40 hr (atcual playing time, not just from the time you activate the code), 2 games (one kiddie, one cool co-op shooter) for $259. The Wii, two basic controllers, one nunchuk, two games, $199
Just my two cents ...
Agreed, if all three had the same pricing, I'd still go for the Xbox. More that I'd want to use (Wii just doesn't have enough of anything I'd want), It's BC with Xbox (original) games, XBL is simply done better than Sony Network (even if XBL costs, it's not that much/year), and the online just runs/plays better. And I simply STILL don't care about Blu-Ray. until BR discs come down to regular DVD prices (especially considering many/most BR discs don't even come close to filling up the capacity for what a BR has), there's just no reason.
If this does become a downward spiraling price war, my prediction is that the next generation of consoles is going to come with big feature upgrades to justify getting back to higher price points.
I'd say that more than anything, Sony needs to do a better job of marketing their product. As of now, all you see is a shiny black box, with hardly any mention of the long-term savings over the 360.
Again, neither wifi, nor bluray are needed to play a game or play onlinbe on your 360. CAT5 and DVD do just fine, and most multiplats play better on the 360 than on the P3, even with no Bluray in the 360. Take your FUD elsewhere.
How exactly does 360 run better multi-player games? Yeah in your dreams I've had both systems and there is no difference but knowing you paid 50 bucks to play on one.
people b****ing about price - i paid $599 and im not complaining, the ps3 is a far better value
ps3 has wifi, thats a $100 dongle for the 360
ps3 online play is free, Xbox live Gold is $50 a year
ps3 has blue ray, xbox doesnt
ps3 inlcudes a browser, xbox doesnt
wii needs to go down to $150 because a stupid wand like controller isnt worth the mark up for gamecube graphics and get real games instead of that Catz crap
ps3 hard drive is user replaceable and not a hassle
Most consumers DO complain though..that is why PS3 NPD monthly sales continue to stay in the pits.
@ Dan7637 :" the ps3 is a far better value"
That's like saying a BMW is "better value". At the end of the day, a heck of a lot more car buyers buy a Corolla those that buy a BMW, because the Corrolla is more affordable.
@ Dan7637 : "ps3 has wifi, thats a $100 dongle for the 360"
Again, you don't need wifi to play online with your 360.The CAT5 that comes with every 360 will do just fine for your online play, with less lag than wifi.
@ Dan7637 :"ps3 has blue ray, xbox doesnt"
Bluray is NOT needed for gaming. Most multiplats perform better on the 360 than on the PS3, and the 360 doesn't have Bluray. As a matter of fact, the DVD driive in the 360 has better data transfer rates than the PS3's bluray drive.
@ Dan7637 :"ps3 inlcudes a browser, xbox doesnt"
Browser huh?
Who needs a browser to play Gears of War or Halo 3?
What do you have your laptop for?
Yeah, certainly people can afford a Corolla over a BMW..... however which car is superior? You get what you pay for, the ps3 costs more but comes with a lot more. (not too mention it doesn't have a 30% failure rate)
- So does the Wii.
- xbox has a Cat5 port that has better transfer rates. Wired always outperforms wireless.
PS3 online play is Free
- so does the Wii
- I haven't heard of many Xbox live users who aren't thrilled with the quality of the service they get for the small yearly fee.
- PS3 is NOT FREE. sure you don't see the cost but someone is paying. Economics 101. Developers have to pay for the PS3 service. This gets passed on to the consumer (note that DLC is more expensive with Sony). Just because you don't see the cost, does not mean that you aren't paying. Atleast Microsoft is honest and upfront with the costs of running an online service.
PS3 has blu-ray
- until the price comes down per movie, I'm not interested. I want a gaming system not a movie player.
PS3 has a browser
- and how do I need a browser on a GAMING system? I have 6 computers in my house that do a far better job for browsing online.
I do want to thank you Kwasiowusu for proving my point that xboy fanboys have nothing better to show then Halo and Gears. IMAO
# 1. The Wii is of course vastly overpriced. It's nothing but "1 1/2 Gamecubes duct taped together" packaged with a Wiimote. With the Gamecube selling for as low as for $100 back in 2006, and even then Nintendo still making a profit on the Gamcube even then, and with chip prices having fallen by over half since 2006, Nintendo is clearly making huge profits on the Wii hardware, at least $125(100% profit) on every single Wii sold. But hey, who can blame them, when non-gamers continued snap up that overpriced Wii by the tens of millions even at $250?
With Wii sales sharply down year on year in April, and May(down 57% in May from May 2008), and showing every indication of registering an over 50% decline in monthly sales, year on year, for the rest of the year, and Wii sales in Japan in an even bigger, longer decline(Wii Japan sales are down over 60% YTD), even the money loving Nintendo are going to be forced by market realities to cut their price sooner or later. Bundling may not cut it, given that the Wii is already bundled with Wii Sports, and Nintendo is even now still refusing to bundle the new Wii Sports Resort/Motion Plus with the Wii, chising instead to sell the Wii with the old Wi Sports/Wiimote, then sell them Wii Sports Resort/motion Plus again.
Thing is, even if Nintendo cuts the price of the Wii, by $50, they'd still be selling at the same price as the 360 Arcade, which is at least 10 times more powerful, can stream Netflix in HD, has the superb XBOX Live and soon the 1 vs 100 Primetime program, and further more can play super games like Gears, Mass Effect etc, which the wii is simply incapable of handling with its inadquate graphics power.
# 2. Sony's still losing money on the PS3, even at a pretty high $400, and they are in business to make money, not lose money. So while they'd have liked to have cut prices earlier, their hands were tied by financial constraints. However, with today's rumours that they are already manufacturing the cheaper to make "PS3 slim" in China, and with less expensive 45 nano chips, they could cut the prices of the PS3, and still not lose even more money, or maybe break even, which is what Sony has been empahasizing for the past 2 years. I have no idea if its going to be a $50 or $100 price cut for the 80GB PS3. Obviously a $100 price cut will sell ore consoles, but then will it end up putting Sony even more into the red, even with lower manufacturing costs?
# 3. The 360 Arcade is priced right for the mass market, at $200, however, if Sony starts to sell the 80GB PS3 at $300 in August, there is no question that the PS3 will take sales from the 60GB 360 Pro($300) and 120 GB Elite($400). Microsoft would have to respond one way or the other.
If the rumours(coming from Ars), that Microsoft will do away with the 60Gb Pro altogether and bring down the price of the 120GB Elite and sell the Elite for the same price as the Pro(at $300) is true, that should keep 360 sales still going despite any PS3 price cut.
In my opinion though, a better option would be for Microsoft to bundle a free copy of likely the best selling, most in demand game, with thewith the highest purchasing intent on any single platform for the rest of the year, Halo 3 ODST with every Pro and Elite 360, starting in September, at the same current prices of $300 and $400.
{See Survey: Halo 3: ODST Leads 50 Most Anticipated Games List.
http://www.gamasutra.com/php-bin/news_index.php?story=24167}
That should give a solid boost to 360 sales from September. The price cuts should only be instituted if in the months after the ODST bundling(say by November), 360 sales as compared to PS3 sales, start to founder. .
http://en.wikipedia.org/wiki/Wii
http://en.wikipedia.org/wiki/Nintendo_GameCube
I think that sony didn't drop the price last march because they could only drop $50 which i think would not be significant and would hurt them more. By August, if they successfully made a slim version to cut the manufacturing and allows them to cut the PS3 price by $100 would be great for them. It would drive their sales crazy. They also have a good line-up of games which would help too. If the execution of their motion wands are great, they'll be able to beat the wii(if the wii don't cut their price). $300 ps3 vs $250 wii, which would you buy?
Because it is the cheapest current gen console on the market?
@ kirobz :" Won't you need a hard drive? "
Nope.
You can play your Gears of War 2 and Halo 3 on your 360 Arcade straight out of the box. No hard drive needed. Stop spreading FUD!
@ kirobz :" xbox360 is a great system. but MS keeps ripping off their customers. "
Microsoft has lost a cummulative over $6 billion on the XBOX business since the XBOX was launched in 2001. How is that "ripping off"?
You don't lose $6 billion when you are charging "rip off " prices.
Yeah rip off like when MS release a defective gaming unit just to beat others to the market at the expense of there valued customer. The only FUD ,whatever that is anyways, is being spread by you my friend.
If you buy a 360 or PS3 over the Wii chances are your into hardcore gaming and if so a REAL hard drive is needed which again will cost you 100-150 extra on the 360.
BTW come on Halo and Gears two sucked will you stop mentioning those already. Especially when you have better exclusives you can mention like left for dead, mass effect, and Fable. Still if its exclusives nothing beats PS3 line up.
"BTW come on Halo and Gears two sucked will you stop mentioning those already. Especially when you have better exclusives you can mention like left for dead, mass effect, and Fable. Still if its exclusives nothing beats PS3 line up."
do you have the numbers to back it up? http://www.ebgames.ca/
http://en.wikipedia.org/wiki/List_of_best-selling_video_games
http://www.vgchartz.com/weekly.php
no you don't exclusives like halo and gears 2 all outsell sony exclusives the only one even close to outselling anything on xbox is MGS 4 and that was for 1 month on launch date look at the top 10 on npd or even better EBGAMES website stop being a fanboy
oh and i own a ps3 and very very disappointed with it have 3 games that i have to keep my nephew entertained but he still brings his xbox 360 instead but i use it for blu ray movies mostly on my hdtv
you have to look at the reality of the situation and state in your opinion you think that exclusives are better on the ps3
cause the numbers doesn't add up since xbox exclusives and multi platform games preform much better on xbox
the software sales alone on xbox far exceed the ps3 even on weekly sales 300000 more then ps3
XBox 360 - Built at around cost, but with time supply costs drop so I wouldn't doubt if they had a modest drop in price.
Wii - Dominating market and built at a profit... price drop? maybe but I doubt it.
The PS3 is just too expensive and the interface one you finder a media server just sucks, it is clunky and ugly. One more area where Sony could be adding value to the PS3. But, instead of making the PS3 more worth the money they will just keep dumbing it down until they have Sony Junk Lite.
- by diva336 July 20, 2009 11:26 AM PDT
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