Price cut rumors for Xbox 360 and PS3 - Wii already cheap enough
By Dave Parrack
There have been some unsubstantiated, yet insistent rumours of price cuts for both the Playstation 3, and Xbox 360 over the past week. Whether any of them are true or not, it poses the question of how the pricing strategy of all three major consoles is affecting sales.
There’s been talk of price cuts for the PS3 this week, which are rumoured to be announced on January 28th. Most of these were in Internet forums, so can be taken with a pinch of salt. It would make sense however, for Sony to try and increase the momentum for PS3 by cutting the price to a more affordable level.
If the white PS3, which up to now has been a Japanese exclusive, does indeed get released in the US, and Europe, then a price cut to coincide with that would seem entirely feasible, or even likely.
We also know that the price of manufacturing each Playstation 3 has dropped substantially, almost being cut in half from $800 at launch, to nearer $400 now. Although that means the rumoured retail price cut to $299 would still see Sony losing money on each console sold, it certainly makes it more of a possibility.
The Xbox 360 has also been the subject of price cut rumours, this time from an “unnamed source”, which depending on your point of view either means an industry insider who is leaking sensitive information, or just some nut who wants to spread unfounded rumours, and has realised a great way to do it.
The unnamed tipster is claiming that Microsoft are planning on a $49 price cut to coincide with the release of GTA IV. Again, that does make perfect sense, as there are literally millions of GTA fans who will want to jump generation in order to play the next instalment of their favourite franchise.
As for the Wii, well no rumours there, but why would there be when demand is still outstripping supply by a fair margin. In fact, Nintendo could probably push the recommended retail price up a bit and still sell more than they can manufacture.
At the moment, these price cuts are mere rumours, and until Sony or Microsoft confirm them, I’d take them with a huge pinch of salt. You can, however, guarantee that both consoles will see a price drop at some point during 2008. It’s more a case of when, not if.
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on Wednesday, January 23rd, 2008 at 2:14 pm
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Tips N4G
January 23rd, 2008
THe ps3 was never 800 dollars, even for the top end model. what the hell are you talking about
January 23rd, 2008
The Playstation 3’s Production cost was $800 at launch but Sony Charged 500 and 600 dollars Now, a year later, The Production Cost is $400 and sony is charging 400 and 500 dollars. It never cost the consumer 800 dollars just sony. Sony was at a 200 dollar loss with the high end PS3 at launch date. now its at a 100 dollar gain.
January 23rd, 2008
wii doesn’t count,its not any better than a PS2.
PS# and 360 are worth buying.
January 23rd, 2008
The PS3 cost 800 to make, it was never sold at $800. MEANing, they have always taken a loss even on the $600 unit. Since the cost is at $400 and the new units are selling at $400, it seams feasible that they are still willing to take a loss…even at $299.99 they would only lose $100 a unit, when the $600 units last year were losing $200 a unit.
Note: Cost means Cost to make, and Price means what it Costs for a consumer to Buy.
January 23rd, 2008
Dave Parrack,
you dont know shit do ya,SOMEONE KICK HIM OUT OF HIRE.
lame ass last name u got “Parrack”!!LOl!!!
January 23rd, 2008
Dear Pat:
You have misread the article. The cost of the manufacturing and components of the PS3 was, at one time, estimated to be around (if not over) $800. Of course, as we know, the retail price was $599 at its peak. This is clearly stated in the article and so next time we would all appreciate it if perhaps you read more carefully before making accusations in such a rude manner.
Mike
January 23rd, 2008
Pat, the ps3 costs 800 to make, it has always sold below profit, thus, a loss. A year ago I thought I read that it actually costs 900 per console.
January 23rd, 2008
It tells use SOny cares about there costomers and give them good quality for less. Nintendo is getting cocky and microsoft been Crap evry since they came out, exept for windows, it the best right now and is better then the MAC
January 23rd, 2008
Pat, you need to read the article again. As Cliff has said, the $800 I quoted in the article was the production cost at launch. Sony have lost money on every console sold since then.
January 23rd, 2008
Why I keep reading stuff on the internet that it’s just not true. The ps3 was never 800.00. It’s like no one check before they post stuff on the internet at all.
January 23rd, 2008
Although I would love a PS3 price cut, it seems highly improbably. Blu-ray is starting to gain momentum and the PS3 is probably the best player out there that can update to the latest profile. However, if Microsoft does have a price cut, I wouldn’t be surprised if Sony does one also.
January 23rd, 2008
That doesnt tell us that Sony cares more about gamers than microsoft. If it is anyone its microsoft with its vast PC to XBox and vice versa thing. Also their customer support is great unlike the SOnys. Also both Microsoft and Sony released consoles to make money not to please gamers. The only thing that they care about is that you keep on buying and be satisfied for a while with it.
January 24th, 2008
The saying is “grain of salt”, not “pinch of salt.”
January 24th, 2008
well I would not be surprise if their was a price cut, right around the date that MGS 4 is release, but september is more likely as they will have little big planet out bythen, home will be on the system and most of the big hits titles will of been release. I would exspect bundle will probably go a long with the price cut somthing like little big planet, MGS and GTV combo coming out to.
January 24th, 2008
Not where I come from Carlos.
February 4th, 2008
i think this is crap i have got a ps3 and they are not going to do a price cut for shit stop chatting crap