Sony not interested in PS3 price cuts – Xbox 360 sales rise

September 7, 2008

Sony not interested in PS3 price cuts - Xbox 360 sales riseMicrosoft has taken the only course of action it really had left at this stage of the game, and cut the price of the Xbox 360 across the range in the US. Will Sony now be forced to act and cut the price of the PS3 in retaliation?

The prices of the Xbox 360 range were cut in North America on Friday. This means that one of the next-gen consoles is below the $200 pricing sweet spot that is thought to guarantee increased sales for the first time this generation. As Mike showed on Friday, while the Arcade Xbox 360 is now cheaper than the Wii, to turn it in to a console with any worth, it’s likely to set you back much more than the $199 being charged at retail.

Industry analysts have loved this development in the current gen console war, with Jesse Divnich claiming it almost guarantees the Xbox 360 will win the sales battles over Christmas 2008. But the one thing which could prevent this happening is if Sony counters with its own price cutting strategy and brings the price of the PS3 down substantially to put it more in line with the Xbox 360 and Wii.

Sony CEO Howard Stringer stated ahead of Microsoft’s announcement that the price of the PS3 wouldn’t be cut before 2009. And now, Julie Han of Sony’s corporate communications department, has reiterated the commitment to the current price point, and talked up the other aspects of the console instead. She told 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, 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 [Pacific Rift]… we’re quite confident our holiday sales will be good.

We try to stick to our strategy… we feel the PS3 offers the value at that price point. There are no plans to do any price cuts.

There is definitely a case for stating that the Playstation 3 still offers the best value for money, especially for people also in the market for a Blu-ray player. But to sell the millions of consoles each of the three console manufacturers are after selling, price rather than features is a key decision-maker for your average, mainstream consumer. And on that score the Xbox 360 wins out, even if it is a lame version of the console.

Any argument against this can instantly be blown out of the water by the fact that sales of the Xbox 360 have already begun to rise. Punch Jump reports that sales of the Arcade SKU rose 1,712% on Amazon on the first day of the price cut. Sales of the Pro SKU rose 504%, while sales of the Elite SKU rose 231%.

It’s clear that Sony aren’t going to cut the price of the PS3 any time soon, probably because it can’t afford to rather than it not wanting to. The Wii will continue to dominate in all territories and I can see the Xbox 360 seeing a resurgence in light of the latest round of price cuts, at least in the short term.

45 Responses to “Sony not interested in PS3 price cuts – Xbox 360 sales rise”

  1. Bourne:

    Catch 22 really, drop the price (risking more losses from R&D costs) or don’t drop the price and risk “losing out” on the christmas sales. Typical Microsoft, don’t offer anything to older owners and combat their obvious defficiencies in the console department by using their usual trick of Money offers. Apart from a cheap console, what else is there to cheer about? I’ll give you GOW2 but apart from that, nothing ground breaking.

  2. Ivan_PSP:

    PLAYSTATION 3 will destroy Xbox 360 no matter how many price cuts Microsoft makes every year. PS3 has the most games and the best so is a no brainer Microsoft is just desperate of losing so many billions every year on every thing they make.

  3. Q:

    Ivan, i think you should do some research before you make any comments. playstation 3 is being destroyed by both the wii and the 360. look up a list of games and also the average scores for each game for the 360 and you will see how much of an idiot you are. You really make the ps3 fanboys look bad.

  4. Ivan_360:

    ivan_psp is gay

  5. OH:

    @ Bourne

    Well said and put concisely. It say a lot about a company that will “slash” prices in an effort to “put another out of business”.

    @ Q:

    The 360 is ahead of PS3, yes. But it’s not “destroying” PS3 across the glob. If that were the case, why would M$ be “slashing” prices at the expense of PROFIT? Why, because they’re worried. Nintendo is fine. Sony needs to be careful how they respond but either way… in terms of global sales, the fact that the “over priced” PS3 is only a few million behind the 360, despite a year’s head start, would leave me a little worried too, if I were an M$ gaming executive… and a little pissed, if I were an M$ shareholder… but that’s just my opinion.

  6. OH:

    The numbers don’t lie… check out Wikipedia and the launch-to-date sales for all three consoles. I’d be worried if I were M$. They already blew their load and Sony’s playing slow and steady and Nintendo got lucky. Either way, competition is good. Especially for the gamer this generation. :)

  7. Bourne:

    Destroyer pricing is illegal not to mention unmoral. If Microsoft keep slashing their prices (granted it would have to get bloody low to be counted as destroyer pricing) Microsoft would have a lawsuit on their hands.

  8. SW:

    Bourne, that hasn’t stopped MS before…

    MS has been taken to court and fined many many times over their practices with Windows etc.

    But hey, its business I say!

  9. Bourne:

    Only because Microsoft is paying you perhaps? Its not Business forcing other people out of the game purely on a monetary basis which is the reason why its illegal. I wouldn’t be so bothered if Microsoft presented a console/games industry which would be worthy of a large sales or by surpassing the PS3/Wii which both offer (although controversial especially for the Wii) great games and other features, but the fact that Microsoft have to be competitive simply down to the fact that they feel they can throw money at a problem to make it disappear makes me loathe Microsoft all over again.

  10. THE HONEST TRUTH GUYS 2008:

    X360 CHEAPER IN UK THAN Wii for the past 6 months wii is killing x360 in uk sales hardware and software x360 is capped out it has no were to go

  11. jaime:

    ask nintendo how the gamecube go with a $99 pricetag.
    price is nothing, value its all that matters.
    nintendo and sony have it with the wii and the ps3.

    microsoft and value cant be in the same phrase… damn i just did it.

  12. anti nintendo=anti gaming:

    nintendo got lucky THATS A ANTI NINTENDO RETARD REMARK IF EVER IV SEEN ONE

    ERMMM NO nintendo saved the industry and culture from its self

    FOR THE SECOND TIME IN HISTORY FACT

  13. wiiboy101:

    so nintendo gave us d-pad and everything from d-pad to 3d motion they led the industry for 20 years the whole idea of a console as we know it is 100% nintendos doing

    yet with wii and ds they simply cough cough GOT LUCKY

    sony fanboy run along your fantasy beach in your fantasy world back to your fantasy beach house to play ps shit with your fantasy super model wife

    nintendo got lucky priceless moronic talk

  14. Greg:

    If we base our observsation on the Amazon bestseller ranking, the price cut is already a flop.

    The sales rose on Friday and Saturday (the PS3 still beeing where it’s been for weeks at #6 or #5 spot), rose to #28-29 spots (for the 60Gb and the Arcade). Then the Elite 120Gb rose to #18 spot on SAturday, along with the Arcade, and now they’re back waayyy down (Ps3 rose to #5 from #6 on Sunday), the Arcade being down to the abysmal (for such a huge price cut) #47, while the other two models are #42 and #26.

    Ouch. I can hear some cries over at MS (disclaimer: this is only the “bestseller” Amazon US ranking, who knows what the real sales are?)

  15. black8jac:

    I dont know how low were sales numbers for x360 but even after those rises but on Amazon US Xbox Elite is on 26th place bestseller list, Pro on 42nd and Arcade 47th.
    PS3 80GB is on 5th position on that list.
    Prices checked on September 7th 2008.
    Sony doesn’t have to worry at all

  16. Ivan_PSP:

    Xbox 360 is getting bitch slapped since January by PLAYSTATION 3. No one wants it anymore is not reliable has no good games and it’s going just like DREAMCAST.

  17. chris:

    I hope all the fan boys here are aged below 12 as you are all childish. You all make some many poits that are wrong…

    Bussines is all about trying to put you competiours out of bussiness, do you think Ford sit at there desks saying lets let GM catch up a bit this week because it looks bad.. Idiots.. Also MS can drop the price of the 360 because its cheap to build, Sony have all the development cost of Blu Ray to make up. That was there bussines model so again, stop being Idiots. All consoles drop in price as they get older. The 360 is now 3 years old…$200 is what I would have said they would be at in this stage of the cycle.. And don’t forget MS is a software company, they want to make money on software not hardware unlike sony….. So think about what you are writing and don’t just be a silly fanboy. In the end there will always be Games console.. In 10 years sony and MS may not even have a console on the market it could be Apple and someone else, Because we all remember Atari and Saga… Were can i by a Atari console from, oh yes Ebay….:)

  18. SW:

    OH FUCK BOURNE!!! YOU FOUND ME OUT!!!!!!!

    MS pay me to post here! Oh well it was a good gig while I had it. Sadly the rule is that once you’re ‘sniffed out’ by a fanboy you are fired.

    Anywhoos, you’ll find I never said it was illegal or immoral etc etc etc. I just said that I don’t give a fuck – if one company wants to take the risk, or the financial hit of using there hard earned cash from other ventures (ie the software side of MS) then why not? Why do we live in such a pussy world?

    Guess what a price drop does? It’s good for consumers! Guess who its not good for? Other companies! Oh gee I wonder who got the gov’t to pass all those anti-competition laws!?

    You know, I don’t like internet explorer, I download Firefox. I don’t like Media players abilty to handle multiple file types, I download VLC. I don’t like the look of the 360 for $200, I go buy a PS3. Its really VERY simple.

    For the record I own all 3 current gen. units and atm my top played machine is my 360, followed by the ps3 and then wii. However, I’m out of games to play at the moment. Just waiting on Fallout 3 for PC (and a few others ;) )

  19. Matt:

    @OH

    “Nintendo got lucky”

    People would pay to hear stuff that funny.

  20. harry sachz:

    HAHAHA Microsoft is paying SW?? Because he has an opinion different to yours (and more correct) you’re saying that Microsoft is paying him?

    If anything, SW has to be the most balanced poster on this site.

  21. Sk8man:

    @harry, agreed. SW is the most balanced poster

  22. OH:

    @ Matt

    Yep. Nintendo did get lucky. They said so themselves. How is it I know this? Because, I have owned their stock for 12 years and am very happy right now, please keep giving me your money. :) You obviously have no sense of historu or its record but I have shareholder briefs and (you bothered to do some research) Mr. Iwata and Mr. Fils-Aime admit that the Wii was a gamble and if it didn’t work, Nintendo would rethink being in the console market.

    The last time I checked… when one takes a gamble and wins… that person “gets lucky.” So, you and your other Nintendy fantards lose with your name-calling.

  23. OH:

    @ anti nintendo=anti gaming

    Your screen name says it all. You’re very unbiased.

    @ wiiboy101

    LOL at your name. How old are you? I think you had a little messy… so run to mamma so she can give you some diapers to catch your “Wii”. Yes, I do own a beach house.

  24. OH:

    I don’t have to justify my opinions but I do enjoy comments made by people who have no idea I am. Also. Flame all you want but I have a Wii, got it at launch, and I very much enjoy playing it with my female friends. It’s a great social device and is definitely a hit with the ladies. I have two DS’ (one launch and a black DS lite).

    But if you want I’ll list the gaming devices I currently own and bought when they came out. , Commador 64, NES (with R.O.B.), Turbo Graphix 16, Original Gameboy, Gameboy Advance, Three Game and Plays (Nintendo if you didn’t know), Gamecube, PS2, and yes, I enjoy my PS3 very much, it goes very nicely with my HD home theatre/gaming room with 7.1 surround controlled and programed by my in AMX.

    Also, at the kid who said Nintendo created/started consoles… tell that to Magnavox and its Odyssey. Take a history class.

  25. OH:

    Anyway, it’s been fun playin’ with you kids… have fun… time for me to study up on my English (it is my fourth language) but I’ve embarrassed myself enough with my poor spelling and grammar). :(

  26. SW:

    I’m confused.

    Did you have a point to make or were you too busy posting (on 4 seperate posts) big e-penis statements about your 100.12 surround, 40k square ft beach house, 3.2 trillion languages spoken, owning 17 of each console/handheld/computer, OR by trying to talk down to everyone else by calling us ‘kids’?

    If you’re going to call everyone else smacktards at least TRY not to be one yourself (its probably very hard but its ok!)

    For the record! I live on a small piece of land! Have the big 3 current gen systems and a ps2! WITH STEREO SOUNDZORS!!!!!!!! YAY ME!

  27. SW:

    “I’ve embarrassed myself enough with my poor spelling and grammar”

    No you did that by posting.

    (Yes yes, I followed 4 smacktard posts with 4 of my own, beat you all to it ;) :P )

  28. JD:

    @ SW

    Same can be said about you. Everyone is entitled to their opinion. Anyone can say anything on the interweb. Even you. He has a right to defend himself. He wasn’t the first one to name call, Mr. “I live on a small piece of land.” I own my land, 40 acres, paid for. How about you? Oh wait… I bet you’re going to say you own an island. So please, be quiet “kid”.

  29. OH:

    @ SW

    The point I was trying to make was the following: Someone who doesn’t know who I am is calling me a name. A name he cannot back up. I can back up what I have. If you knew me, you would know. Anyway, that doesn’t matter because you mean nothing to me just as I mean nothing to you. All you are is a jealous kid but that’s okay… In addition. the kid was basically saying I was “Anti-Nintendo”… my point. How can I be Anti-Nintendo when I have and do game on Nintendo hardware?

    Just “for the record”… the multiple posts… sorry about that, writing from an iPhone IS a little cumbersome (waiting for your weak comment I already anticipate) by the way how many languages do you speak fluently?

    Judge me all you want. I call you for what your are… ;)

  30. harry sachz:

    LOL SW. He probably doesn’t have good wifi strength on his yacht.

  31. SW:

    JD – Dude did I ever claim anything other than owning a few cheap consoles (less than $1k CAD) and living in a building?

    No I didn’t…………Child. (I figured since its ‘call someone a name that’s not adult day!’ I would throw that in too.), but you have yourself a nice night.

    WAIT! “I live on a small piece of land.” to you means what 20 acres or something? I meant LESS THAN ONE ACRE!! STANDARD HOUSE SIZE!!! Sheesh – but I %1000 understand, because you have 40 acres (What do you use it for may I ask? Seriously.) then maybe you thought small meant 5 or 10?

    @OH

    I’m not jealous of you in any way or form, hey would I like your stuff? Yup! PLEASE put me in your will! Ill take it all!

    Am I jealous?, hardly. I have everything I want in my life at this time, altho I would like another bedroom to put stuff in! So yes ill say it proud!

    I AM JEALOUS OF OH BECAUSE HE HAS ONE MORE BEDROOM THAT I DO! I WOULD ALSO LIKE HIS COMMODORE 64!

    As for the rest of the stuff, I’m sorry, but I don’t care :(

    Do you own a home away from home I could rent for a holiday at all? Something with an ocean view?

    Now go back to studying, you’ll never pass those exams if you don’t!

  32. The_Truth:

    The big difference between Sony/Nintendo and MS is that Sony/Nintendo are in the business to be in the gaming business while MS is in it to take competitors out of the business so they can fix prices like they do with Office and Windows. MS wants to extend their monopoly from the Office to the Living Room. The fact that the Xbox 360 is cheaper than the Wii shows desperation. The general brand image that MS established from their Monopoly abuses in the OS/Office market is hindering them from having the same privileges in the console market.

  33. OH:

    @ SW

    You’re a funny person, which is why I like coming to this site. Nothings to be taking too seriously but kidding aside; Actually, I’m learning English on my own. Good enough for you to understand. You can make fun all you want but I get paid very nicely to translate (my second job) and have done localization on a couple of games I’m sure you’ve played. So, I guess I don’t have to worry about failing any language tests. At least ones in Japan, North America and a couple of Western European states. ;) Now move on and stop obsessing about other people’s achievements and stuff, as I’m sure you have much better things to do. Plus, it’s not healthy.

    @ The_Truth

    Nicely put.

  34. Bourne:

    OH, you’re learning English? Sounds like your native tongue.

  35. OH:

    @ Bourne

    Thanks. I’ve lived in the US for quite a while but I still have a lot to learn, imho. I enjoy learning languages, they remind me of music, but I’m a lot better at speaking at reading than writing (I still have to work on my consistency, sometimes I’m too lazy to proofread). Have a good one. :)

  36. jham:

    Mmmm… In my country (Mexico) PS3 games are more expensive than Xbox 360 games because they launched the console officially here. The PS3 became official this year (I think) but anyway we are not allowed to buy on PSN unless we give an US adress. On the Xbox Live Marketplace we can buy since day one.

    I know that maybe we are not driving the industry, but we are a good market and a one that’s becoming more and more interesting for everyone.

    Here I only know one guy with a PS3, but all my other gamer friends have Xbox 360. I think it has to do with how everything is being handled.

    I also think that Microsoft has done some good decisions to please gamers. We have done this industry not Wii Fit or Wii Play. Not even Garden or Afrika. Mario, Zelda, Ninja Gaiden, Crash Bandicoot, Sonic, Battletoads, TMNT, damn, even Master Chief is closer to what this industry was, and it truly makes me angry (because I fell to Nintendo’s lie and have a Wii) that they are not developing good games when they have a truly innovative control and they are launching Wii Music ??? WTF ??? Why everything has to be casual now ??

    I think Nintendo did great, but somewhere between Mario 64, StarFox and Mario Strikers they lost their way and know they are doing things for people who have never been into gaming and never will take that as a life as gamers do.

    As for PS3, the problem is the Blu-Ray, I will ever say that. It’s a movie-format issue as it happened with UMD. I have a lot of respect for Sony, I have a LCD Bravia 40″ that looks incredible (with my Xbox 360 plugged in via HDMI). And the way Sony took the industry from Nintendo and made it even bigger with the PlayStation brand known everywhere. They are having problems right know because this generation they wanted to get a huge piece of cake with the HD format, but they forgot that a PlayStation is about PLAYING games on a VIDEO GAMES CONSOLE. I think they are finally catching up with that and I hope they do, because despite I have a Xbox 360 and I’m truly happy with it, I know that a gaming industry with Microsoft as a leader won’t be the best thing that could happen to us. At least for this generation. Let’s see what happens some years from now.

    And for Ivan_PSP, every line you write make me think of you as a retarded kid. I’m really sorry for you.

  37. Bourne:

    OH what is your native tongue and where’d you come from? Careful not to pick up any nasty habits from American English.

  38. SW:

    @OH – How you wish I obsess about you, but its ok. We don’t get everything we want in life :(

    For the record, I was not making fun of your language stuffs. I thought english was your FIRST language (until I read otherwise), so yes you are very good. Congratulations friend!

    @ jham!

    “Mario 64, StarFox and Mario Strikers”
    I agree :( It makes me sad :( There are some nice Nintendo games out for the wii, but games like zelda are just rehashes, even mario galaxy for the most part was a rehash (a fun rehash tho!)… I remember when Nintendo kept talking other companies down about how its all ‘sequals!’ but thats all I never see Nintendo doing any more. Even mario kart wii was just like mario kart 64… Gah…

    Well i’ll be killed for this, but oh well ;) here goes..

    Wind Waker was one of the best Zelda games in modern times. Why the fuck did we go back to an OOT clone? Why does having hyrule have to be ‘closed in’ with mountains?

    I could slap nintendo sometimes because you know they can do so much better.

  39. Open your eyes:

    The PS3 is much more then just a next gen gaming system. Sony may not be looking at this as just a simple war with MS or Nintendo. If you’re looking to buy HD movies most will buy a PS3. (Since HD DVD has failed) Let’s face it, If you have the money to buy a 1080p system are you really going to watch lower quality movies. The PS3 like the Wii will allow you to browse the internet in the comfort of your living room. It’s also nice to have the wireless connections just ready. I believe Sony does still to date not have to cut there price.

    One simple saying in life is:

    “You get what you pay for.”

  40. wiiboy101/2008:

    I STATE NOT OPINIONATED NINTENDO HATING = NON GAMER

    NINTENDO LOVE= GAMER

    THE FACTUAL EVIDENCE

    D-PAD=NINTENDO

    ANALOG= NINTENDO

    RUMBLE= NINTENDO

    SHOULDER BUTTONS= NINTENDO

    THIS LIST CAN GO-ON ALL DAY

    MOVING 3D CAMERA = MARIO 64 = INDUSTRY COPYED IT

    ETC ETC ETC ETC

    EVERY SINGLE CONTROL DEVICE ON EVERY SINGLE NON NINTENDO CONTROL PAD = NINTENDO AND COPYED

    EVERY SINGLE WAY OF CONTROL ON A X360 PAD AND PS3 PAD = NINTENDO INNOVATIONS AND INVENTIONS

    LIKE I CLEARLY STATED INTELLIGENTLY

    NINTENDO HATE = NON GAMER

    NINTENDO LOVE = A INFORMED INTELLIGENT HONEST GAMER

    IF YOU LOVE PS OR XBOX SO MUCH PLEASE PUT DOWN YOUR CONTROL PADS AS EVERYTHING ON THEM IS NINTENDO INNOVATED

    FACT

    SO ILL LEAVE NOW AFTER CORRECTING ANOTHER ASSHOLE

  41. Mark:

    Seems like Microsoft are now the ones on the back foot, having to make desperate price cuts to keep their falling 360 alfoat.

    It’s been dead in Europe for many months now (the 18month headstart on the PS3 has long since evaporated).

    Reading the comments here, it’s clear people can’t get it into their heads that the PS3 can be a great games console AND a great movie player.. I suppose owning systems that that not very good at either, it’s understandable how they came to that conclusion.

    Most people still slagging off the PS3, are basing their opinions on what they saw 18months ago, or straight from th e FUD trenches at Microsoft. TODAY, PS3 offers, the same, if not better online experience as XBox360, without the charge. The multi-platforms are now generally looking better than their 360 counterparts, and the PS3 exclusives are stellar, again much better than the 360. Sure you have to pay a bit more to buy a PS3, but you get a whole lot more for your money, not least a quiet, reliable system.

  42. SW:

    To be fair, you pay a price for the level of noise coming from the PS3. The 360 is only noisey due to the drive which for games is better than the blu ray drive (well except storage wise!). The PS3 can also kick up alot of noise when it starts to get warm, sounds like I have a fkin leaf blower under my tv. Of course the same could probably be said about the 360, but with the DVD drive screaming its ass off, you’d never know.

    But I suppose its a moot point now MS is giving the 360 HDD installation (altho I don’t know if that supports all games. Anyone?), which I guess kinda points to ‘OK we like DVD, but we realise HDD installs are superior!’ or something…

    Can’t argue about online tho, both seem the same to me. However, now my Gold free month has run out I find myself on the PSN getting demos the day they come out rather than being bullshitted by some 2 tier internet expierience (‘You need to give MS money to download this demo!’ – I think is what XBL tells me ;) )

    As for the media player stuff, they’re pretty much the same bar the blu ray and I think the 360 provides better codec support for streaming from media servers.

  43. Sq:

    With Silver membership You can only talk to Xbox friends,Download Demos,themes, Game Content etc.
    Only very latest demos make you wait a bit longer if you are not a gold member.

    360 is selling big numbers in Europe now especially with the price cut and the fact the new 175w 360 runs cool and quite.

    The new dashboard update coming soon has so many new features it is going to be more like a whole new Xbox live and should set the marker for how consoles and the internet should be done
    It will also allow people to install any games they want to hard drive,and you are not forced to install anything as you are on the PS3.

    Good to see the 360 has outsold EVERY game console in Japan this week and that includes the Wii. The USA also saw the 360 outsell the PS3 by a huge margin and once the price cuts take effect next week it will be the same in Europe..

  44. resisfutal:

    The name of the game is sales. The bottom line. Right now the US economy is at a low point. If Sony has to cut prices, it will. MS is also at a point were sales has reached it’s breaking even stage. So in an attept to boost sales of games, controllers, hard drives, etc. They drop the price of the console. Put it this way, Instead of making 40%-50% profit on the console. They only make 20%-30%. The price of the extras (games,cont.etc) don’t change and at the same time sales go skyward. So what ever the stratagy is generating sales for the sake of the bottom line is all that matters. Losing money has no part in the business world if you can avoid it. Sony has to remain steady. They might lose more then they make by dropping the price to soon. But sure enough come Feb. ’09 the price will drop $100.00 or more. It’s a dog eat dog world. What else is new?

  45. resisfutal:

    I’m willing to bet that at least 75% of everyone who reads this already has two of the three consoles anyway. They all have their place. If any of us want to own a PS4 or Wii2 etc. We have to keep buying what’s on the market. Support your favorite but don’t say one is better then the next. Do you really think that no one at MS has enjoyed playing their PS3. Or Sony developers don’t spend a good amount of time fragging their fair share of opponants on xBox Live. Even a diehard Ford man would work for Chevy if the pay is better.

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