Quantcast PS3 Price Drop? Not Really.... - Ozymandias

PS3 Price Drop? Not Really....

Yes, I've seen the news about the PS3 "price drop." We've all known it's been coming for quite a while - heck, I even put a stake in the ground way back at the beginning of the year. To quote:

The Playstation 3 will have an effective price drop of at least $100 by Thanksgiving 2007. By effective, I mean that it’s also possible that the price will remain the same, but at least $100 of value will be added to the bundle.

And guess what? It's the latter that happened; the PS3 has remained the same price, but with additional value bundled in. Remember, six months ago the PS3 launched at two price points: $499 (20 GB SKU) and $599 (60 GB SKU). The 20 GB SKU faded away, leaving just a single 60 GB SKU. Today all that's happened is that the existing 60 GB SKU is now $499 and the new 80 GB SKU is $599 (with bundled Motorstorm).

Simply put, a few months ago there were two versions costing $500 and $600. Today there are two versions, costing $500 and $600. You get a bit more bang for your buck, but this isn't going to move the needle significantly on console hardware sales. At the end of the day, the price of entry to play a PS3 game is still $500, just as it was when the console first launched.

Couple of other thoughts to consider. The new 80 GB SKU at $599 doesn't have the backward compatibility hardware in it, so it's not even as full-featured as the launch consoles. And the 80 GB hard drive isn't that big a surprise. Drive prices drop and suppliers find it expensive to keep manufacturing older drives when they can migrate their production to higher-capacity drives at the same price. Sony very likely can't even get 60 GB drives in volume anymore; expect to see the 80 GB drive to become standard in the lower-end SKU when the next, hopefully real, price drop comes.

All-in-all, not much to see here. Sony is still in a tough spot. On the one hand, they desperately need to keep the price high to try and recoup some of their costs. On the other, they need to drop price to sell more units. My guess is we may see a second, "real" price drop as soon as this holiday if the needle doesn't shift much after a few months.

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Posted: Jul 09 2007, 02:36 PM by Ozymandias | 62 comments |
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Comments

Giolon said:

I disagree with you here, Ozy.  Yes, *technically* there was a $500 option for the PS3 at the time that it launched, but very few retailers actually ordered any significant amount of the 20GB unit.  I'm in the SF area and not a single BestBuy, EB, Toys R Us, or Target that I went to around launch were expecting to receive anything but 60GB units (nor did they stock anything else after the launch and supply quickly caught up to demand).

I think this price cut puts the 60GB PS3 *very* competitively in line with the Xbox 360 Premium given that it has Wi-Fi ($99 add-on for 360) and Blu-Ray built in ($199 add-on for 360).  You now have a "complete" package with all the trimmings, for $200 less than it would cost to do the same with the 360.

Now, if only the good exclusive games would materialize...until then, I don't know how much of a boost this price cut really will give them.

# July 9, 2007 2:41 PM

RomeoDude said:

I think it's more of a 'price adjustment' than a price drop. The price of entry is still $500, which I'm not willing to spend. It may be becoming cheaper, but it's losing the Emotion Engine for backwards compatibility, so it's losing a major selling point. Since the more expensive SKU is losing bc, there's a really good chance the feature will eventually fade away from the cheaper SKU.
# July 9, 2007 3:08 PM

Masked Dave said:

Unless you're European of course, then most of that becomes invalid.

# July 9, 2007 3:14 PM

islandkiwi said:

Oz, no offense, but a piece of hardware I bought for 599 is now available for 499, then it's a price drop. When (not if) MS drops their console price, wouldn't you consider that a price drop? And if Sony can't get 60 gig drives anymore, why does MS have so many of these 20 gig drives? Personally I think Sony screwed up by introducing the 80 gig at all. It's not a good deal, especially considering the software emulation issue. They should have gone down to one sku.
# July 9, 2007 3:37 PM

Epsilon said:

I don't think much is going to change the PS3's lack of success. While dropping the price on the 60GB will possibly get some people to purchase one, that's a still a lot of money for a product that is essentially the same as the Premium 360 but has less games. While the PS3 has some more bullet points over the 360, I doubt that'll sway the casual gamer who's just looking for some fun games. As for phasing out older SKUs, maybe MS can finally ditch the Core and drop the Premium down, maybe even slide the Elite into it's old price point. Hopefully then developers can begin to make games that rely more on the HDD as most people I know who own a Core (like myself) have all purchased HDDs by now.
# July 9, 2007 3:44 PM

Skip said:

<I>Sony very likely can't even get 60 GB drives in volume anymore; expect to see the 80 GB drive to become standard in the lower-end SKU when the next, hopefully real, price drop comes.</I>

So should we take this as confirmation that soon the 20g version of the 360 will go away and the 120g will be standard?  

(ducks)

# July 9, 2007 4:04 PM

Ozymandias said:

Let me put it in the simplest possible way:

The cheapest anyone has *ever* been able to play a PS3 game like Motorstorm is $499. That's the cost of entry. Today that cost of entry is still $499.

That's why I say there really isn't a price cut.

# July 9, 2007 4:06 PM

Ozymandias said:

Re: "<I>Sony very likely can't even get 60 GB drives in volume anymore; expect to see the 80 GB drive to become standard in the lower-end SKU when the next, hopefully real, price drop comes.</I>

So should we take this as confirmation that soon the 20g version of the 360 will go away and the 120g will be standard?"

;)

Not necessarily. Sony is being forced to upgrade because low-end drives just aren't being made in great volume (and eventually at all). Higher capacity drives still have a lot more utility, and hence are easier for drive manufacturers to build and sell.

# July 9, 2007 4:08 PM

xS1TH L0RDx said:

oh jesus. the 60 gig ps3 WAS 599.99 us dollars, NOW it's 499.99 us dollars. it's a price drop of 100 dollars, quit playing semantics.

# July 9, 2007 4:09 PM

The Hedon said:

Very few available, yet they were in demand and sold out.

It's unfortunate that the Sony fanboys always pull out the "Wifi" and "BR" card.

The fact remains, you DON'T have a complete package. You end up with a package of items that users are forced to pay for that they don't need.

100% of the PS3 owners that I know all have their PS3 hooked up via Ethernet cat 5, not Wifi. Wifi is substantially slower in trasfer rate and internet connectivity, and less stable (not to mention the wifi in the PS3 is a VERY cheaply installed version). Secondly, what good does the PS3's BR player do for HDDVD owners?

Finally, if you feel the need to include the unnecessary $99 for wifi and $199 for the BR player, let's do the same with the 360 Premium and Elite.

1. 360 includes Windows Media Center Extender Hardware/Software - $249

2. 360 includes headset - $20

3. 360 includes component cables - $20 (Elite includes Component and HDMI - $30)

4. 360 HD-DVD add on includes universal remote ($30)

5. Replacement rechargeable battery (after battery is no longer capable of holding a charge) for the 360 is $9. One must replace the entire controller on the PS3 ($49.99)

6. Elite package for $479 includes 120gb HDD, while the PS3 is 80gb (new 120gb laptop drive for PS3 would be $99).

I am going to remove the Elite figures from this equation though:

$249+$20+$20+$30+$49+$500 = $868 for PS3 60gb

$249+$20+$20+$30+$49+$600 = $968 for PS3 80gb

Adding your HD-DVD addon + Wifi to the 360:

$299+$199+$99+$99(HDD) = $697 for Xbox 360 Core

$399+$199+$99 = $697 for Xbox 360 20gb

$479+$199+$99 = $777 for Xbox 360 120gb Elite

So, the most expensive Xbox 360 console offers even MORE that the least expensive PS3 option for $91 less, which equates to about 2 years of Xbox Live to equal that out. And to top it off, I still have more games, more exclusives and a larger Live community if I go with the 360.

# July 9, 2007 4:09 PM

The Hedon said:

I am also wondering if they will get a $100 refund for those of us who paid $599 for our 60gb PS3s. I suspect the $100 refund checks will be sent out in the next 8-10 weeks.

# July 9, 2007 4:11 PM

Ozymandias said:

Re: "oh jesus. the 60 gig ps3 WAS 599.99 us dollars, NOW it's 499.99 us dollars. it's a price drop of 100 dollars, quit playing semantics."

I did say in my post that you get more bang for your buck - not arguing that point. :)

But again, I challenge you to find a "cost of entry" to play a PS3 game that's less than $499 - or in other words, the same exact price that was available to consumers the day the PS3 launched.

Put another way, it costs the same today to play Resistance as it did when the PS3 launched. There's no arguing that fact.

# July 9, 2007 4:14 PM

islandkiwi said:

I get your point now, Oz.  And you're right that the price points haven't changed at all.  Personally I don't see this change making a lick of difference, 500 dollars is still viewed as too much by many gamers.

I think MS's response to this will be what's interesting.  MS has a tremendous holiday lineup of games, and (allegedly) the new chipset making its debut this fall.  If MS wants to dominate the holiday season, a price drop will be forthcoming.  I guess we find out tomorrow night, eh?

# July 9, 2007 4:32 PM

The Hedon said:

There is also no arguing that a $500 and $600 price tag is what prevented many from buying a PS3. If they don't have $500 or $600, they just don't have it. The PS3 is still $500 and $600. The price has never dropped below $500 and $600. If I go into a Lexus dealer today and they want $30,000 for an IS300 with a 2.8 liter V6 with 300hp, and 17 inch wheels, and I told them I can't afford it, I can't afford it. If they called me up 7 months from now and tell me they have an updated/new Lexus IS300 with 3.3 liter V6 with 345hp and 20 inch wheels for $30,000, I would still tell them I don't have the money. They didn't drop the price. They added features to entice me to buy it. But since I don't have $30,000, I can't buy it no matter if they throw in a Geo Metro. Now, had they dropped the price to $25,000 and kept the same 300hp with 17inch rims, I would have been fine with that, and my wallet could afford it. It's deception people. It's all in the marketing.
# July 9, 2007 4:36 PM

Ozymandias said:

Re: "I think MS's response to this will be what's interesting. MS has a tremendous holiday lineup of games, and (allegedly) the new chipset making its debut this fall. If MS wants to dominate the holiday season, a price drop will be forthcoming. I guess we find out tomorrow night, eh?" Just playing devil's advocate, but let's say the PS3 "price cut" doesn't significantly help sales (which is what I expect as the price to play is still $500). And let's say everyone agrees the 360 holiday lineup blows away whatever else Sony can deliver... is a 360 price cut really needed? Not making any sort of prediction or statement here - just asking the question. Good thought excercise. :)
# July 9, 2007 4:42 PM

JohnCz said:

I see Ozy's point. Sony gets some free publicity with this move. Unfortunately, consumers are going to see "$100 OFF" and think they are getting a better bargain than they really are. The cost difference between the 20GB and 60GB drives is probably around $15..in added value. With XBox sales not all being that great I think Microsoft needs to find a way to do the same. I imagine the best way to do that is to add new services or features that the other consoles don't have. IPTV!?! Portable Gaming!?! New Gaming Technology..like using a Webcam and Object Recognition to control games!?! Outside of game titles, I hope Microsoft is prepared to bring something new to the table at E3 that adds value to the console.
# July 9, 2007 4:46 PM

noway said:

Apparently it's a price drop to some people because it's suddenly selling faster already. Oh well. This article fails.I look forward to tomorrow's X360 price cut that isn't really a price cut lol lol lol

# July 9, 2007 4:48 PM

Trellium said:

xS1TH L0RDx wrote: "oh jesus. the 60 gig ps3 WAS 599.99 us dollars, NOW it's 499.99 us dollars. it's a price drop of 100 dollars, quit playing semantics." No, the 20GB model just got a bigger hard drive. Both viewpoints are just as accurate. What is funny is that Sony discontinued the 20GB model after only a few months due to poor sales. Was the reason for the poor sales really because people demanded 40GB more hard drive space? I doubt that. It's not likely that Sony will support a 60GB and an 80GB model (or that retailers will stock both, since they refused to do so previously according to Sony). Likely the 60GB model is on the way out, but then does the price just stay at $599 after the $499 sell out?
# July 9, 2007 4:56 PM

Giolon said:

Ozymandias: "But again, I challenge you to find a "cost of entry" to play a PS3 game that's less than $499 - or in other words, the same exact price that was available to consumers the day the PS3 launched." But again, you're missing the point. Yes, *somebody* somewhere was able to pick up a 20GB PS3 for $499 and begin his "Next Gen" experience with Sony. However, that unit was not widely available at launch or afterwards, and hasn't been available *at all* for the past 4-5 months (even though Sony didn't officially discontinue the 20GB model until April, it wasn't available for a few months before then because retailers "weren't ordering it," according to Sony). The point is, for the vast majority of people out there, the price of entry to the PS3 just dropped $100. Technically, yes, there was a limited amount of units out there at $499 previously, but they were about as rare as spotting a California Condor in the wild (or an Xbox 360 Elite on store shelves, saw my first one yesterday).
# July 9, 2007 5:02 PM

Trellium said:

Posts still going missing? Sorry, but almost all of mine do until I point it out.

Microsoft hates gnomes! :)

# July 9, 2007 5:08 PM

Ishmae1 said:

@ 499 it's still too much.  @ $400 with HD cables and wireless RUMBLE controllers, and some decently sized HD it's worth it.

Blu-ray is just a gimmick if you're purchasing a game system first and foremost.  It's value added only if you really wanted it in the first place.

The 20GB model was just silly... wired controllers in this day and age... huh? =P

# July 9, 2007 5:13 PM

Scott said:

The only next-gen console that's fully backwards compatible with it's former generation is the Wii. The 360 won't even play my copy of JSRF/Sega GT and Chronicles of Riddick. It's backwards compatible purely by emulation. So, what's to fret about? At least they were the only company so far to drop their price.

# July 9, 2007 5:52 PM

The Hedon said:

Another one of my posts didn't make it. Oz, can you check your spam queue and get our posts out!

# July 9, 2007 6:02 PM

The Hedon said:

Unfortunately, they didn't drop their price. The prices are the same as they were 8 months ago, but they added a couple more features for the price. People still can't afford $500-$600.
# July 9, 2007 6:03 PM

PhillyRampage said:

Jeez Ozy, why do you even try to argue with these people, especially the person with the dollar per dollar calculation. There's no winning with these people, you should know this by now.

# July 9, 2007 6:37 PM

Kevin said:

Ozy,

Read the news. It's been confirmed. Read the Sony blog and the Sony Press Release on the matter.

Learn to read for god's sake.

# July 9, 2007 6:48 PM

Ramsies said:

Ishmae1, the 20GB came with a wireless controller. It didn't come with wifi.

# July 9, 2007 7:10 PM

joe said:

you're full of *** ozymandas. this is a price drop no matter how much you try to spin it. as hard as you and microsoft try you are not going to make people believe your line of horse ***.

# July 9, 2007 7:19 PM

platinumbatto said:

wow. some people are alil dense. don't you get what he is saying. he not syaing that there is no price drop for the ps3 he is saying that the entry point ( the amount of money that is needed to get a console to be able to play a game) is still 500. that is the minimum amoutn of money needed to get the ps3 to play. now if you want to do a comparision with launch. When the ps3 came out it came out in 2 flavors the 20 gb and the 60 gb. now during alunch and even after launch everyon wanted to get the 60 gb version when the 20 gb faded it did not really impact any one cause every one whated the 60 gb version. now that there is s 80 gb version they can introduce it at a higher price point so rather they decrease the price of the 60 gb. it could be that components are now cheaper.but it's still the same thing at alunch. now everyone wanting to buy a ps3 will now want to go for the 80 gb version and then we are back at square one. now even though ozymandias has been hash about sony and their strategies. he is still right at the end of the day. it's just like the 360, any one wanting to get a 360 at this point will be looking to get the elite. but there is a difference. you can always get a cheaper version and get an addidtional 120 gb hd. i know i know. you can upgrade the hardrive to the ps3 but wouldnt it be nice if sony offered a hardrive kit instead of releasing a whole new sku. people think outside the box before you start bashing. in the end you just make your self look stupid
# July 9, 2007 7:59 PM

Epsilon said:

Wow, lots of hating on here. I think Ozy has a point that the buy in never really changed, just what you're buying has and that it's become a better value. I'm looking at a price drop as the amount of money I have to shell out is less than what it was before which, you could argue, hasn't changed all that much since the system first came out. Obviously if the 20GB was unavailable, this is a price drop, but the time period between the two changes wasn't all that long as far as I can tell. Once the PS3 hits the $400 mark or lower I'll become interested, assuming any good games are on it by then and aren't still "coming soon."

# July 9, 2007 8:13 PM

Ozymandias said:

Sorry for the spam filter - looks like it caught a bunch of stuff again. I'll go release it all - you should see it now.

Also, I'll be upgrading the blog to a new version of Community Server in the near future. Hopefully that'll be a bit more accurate on the spam checking!

# July 9, 2007 10:33 PM

Master Devwi said:

Exactly!  I totally agree with you!  That is the same thing I thought when I first heard about Sony's announcement.

# July 9, 2007 10:52 PM

Imaginedbug said:

What Microsoft needs to do is counter Sony's move by dropping the price of the 120GB drive to $50 and making it standard on all new Premium consoles, put the 20GB drive on the Core console (and make it available for no more than $25), and then make a 250GB drive for the Elite. Scare the shits out of Sony with a move like that, and make it far more interesting for people to get a 360... Added benefit: everyone'll have an HDD, so games can start demanding it, which'll also drive sales of HDDs for people who don't have one yet. Also, Andre, while you're technically correct in saying the PS3 simply got the same consoles at the same price but with adjusted 'features' when it comes to the US of A, but here in Europe (you know, the 3rd world as far as Microsoft is concerned) the 20GB PS3 never saw the light of day. Do if the price drop gets pushed globally, it really *will* be a price drop over here. Then again, Sony thinks of Europe the same way Microsoft does, so I don't expect such a price drop for at least 6 months until it's been set everywhere else in the world.
# July 10, 2007 1:05 AM

Fiction N Lies said:

Wow, a lot of misunderstandings in the comments. Nice perspective on the whole "price drop" and/or "more bang for your buck" on the PS3. I keep hearing that Xbox 360 sales are slumping, but I have yet to see any figures. All I know is that in the last couple of months, several of my friends have been picking up 360's. Some waited a while for an Elite to become available (I still have yet to see one on a store shelf). It's been almost 600 days since the 360 launch (595 to be exact @ the time of this post) and there has yet to be a price drop on the system. I'm not asking for a price drop since I already have two 360s, but rather am very amazed that the price drop hasn't been needed. For that I commend the Xbox team for doing a fine job and keep the quality titles coming. Oh, and one more thing. Bang up job on the Achievements. Whoever came up with that idea should get a raise. This is why my friends buy 360 games over the PS3 counterpart. [For those of you that don't care about Achievements, we don't care about Blu-Ray.]
# July 10, 2007 1:46 AM

Robin said:

@The Hedon:

OK, so you were making a valid point about bundled functionality versus hidden costs, until you said:

"1. 360 includes Windows Media Center Extender Hardware/Software - $249

2. 360 includes headset - $20"

And that wifi is somehow 'unstable' or anyone is still cares about HD-DVD.

Do you genuinely believe this stuff?

The fact is, any of the X360 SKUs incurs hidden costs to get a basic level of functionality, before we even look at the optional extras. The fact you get gouged on the optional extras (like the HDD and Wifi dongle) should you want them is just adding insult to injury.

# July 10, 2007 1:49 AM

VirtuaDAX said:

So according to Ozymandias' logic, the price of the Xbox 360 went up by $80 when the Elite was released?

# July 10, 2007 2:54 AM

EvilFiek said:

No, the entry-cost for getting a 360 still stays at 299$, you just got another SKU to chose from. Ozy's point was, that people today still have to pay as much as they had when the console launched because the cheapest SKU is still 499$. I don't see any flaws within that logic.

# July 10, 2007 3:17 AM

EvilFiek said:

Sorry for double posting, anyway.

You US guys might not get a "real" price drop but I believe we Europeans might. We had no 20 GB SKU in the first place and if they'd decide to drop the price over here for the 60 GB SKU it would actually mean a lower cost of entry. Still I doubt that it will lead to higher sales in Europe besides the obvious "first week after a big announcement" sales push. 500€ is still 100€ too much for us Europeans[you have to consider - 500€ is about 600$].

# July 10, 2007 4:25 AM

El Cid said:

Playing Devil's Advocate, if HD prices drop this quickly and manufacturer's shift to higher storage capacity manufacturing why is the 20 Gig HD on the 360 still $99? Also, does that mean the 120 Gig HD price will drop soon??? I agree with Ozymandias' point that the price points remain the same as at launch and probably won't do much to spur sales - it's really just clever semantics to make people feel they're getting a great deal when you only get a few additional features a year later for that price point. The price point is trouble enough for Sony, but the utter lack of compelling content (retail and PSN) is what's really killing them. For the record, I've had a PS3 since 12/31 and really wish Sony would get its act together as I think competition is great for the industry. Microsoft's entry into the console world has already reaped great benefits for gamers and shaken the complacency of the old giants.
# July 10, 2007 5:15 AM

The Hedon said:

" Robin said:

@The Hedon:

OK, so you were making a valid point about bundled functionality versus hidden costs, until you said:

"1. 360 includes Windows Media Center Extender Hardware/Software - $249

2. 360 includes headset - $20"

And that wifi is somehow 'unstable' or anyone is still cares about HD-DVD.

Do you genuinely believe this stuff?

The fact is, any of the X360 SKUs incurs hidden costs to get a basic level of functionality, before we even look at the optional extras. The fact you get gouged on the optional extras (like the HDD and Wifi dongle) should you want them is just adding insult to injury.

"

Robin, do you know what you are talking about?

# July 10, 2007 5:51 AM

ushman said:

@ ozy's question is the price drop needed? I say no, but are there alot of people out there waiting for one.. I would have to say a capital YES. But heres the thing mostly all the hardcore gamers already picked up the console and even with the best line up in the world will it be enough to bring in or convert new buyers? alot of people I know don't even know what a really good game is but they do know what a price drop is.

# July 10, 2007 6:10 AM

Porktree said:

I think you're ignoring a large part of Sony's strategy here.  Right now in the big box store I can walk in and buy a blue-ray player for $499, or, I can buy a pS3 for $499.  If I was already looking at getting a blue-ray player, then I'm buying the ps3 for the additional functionality.  They have just increased the potential customer base.  I think this will prove to be pivotal in not only the xbox360 vs ps3 arena, but also in blue-ray vs hddvd.  I think MS made a mistake in not including hddvd playing capabilities in the Elite.  I have the hddvd add-on already, but I think including hddvd in the configuration would have balanced 1) this price drop, and 2) the format war.  (*shakes fist at Blockbuster)

And what ever happened to the walmart rumor?

# July 10, 2007 6:21 AM

Trellium said:

I think Sony genuinely wants to sell the PS3 for $599, and the $499 60GB model is only to clear their overstuffed warehouses of older SKU's. Once done, they hope that the sales boom will force people to buy in at $599 since they aren't manufacturing the $499 unit any more. They will just claim they tried a dual SKU model and it failed twice.

# July 10, 2007 7:25 AM

Trellium said:

MS made no mistake in making the HD DVD drive optional, for the obvious reason that some homes have more than one 360 but don't need an HD DVD drive on all of them. Premiums or Cores for the second and 3rd 360 make a ton of sense; the price of doing that is a third less than Sony can do.

# July 10, 2007 7:28 AM

The Hedon said:

"I think you're ignoring a large part of Sony's strategy here.  Right now in the big box store I can walk in and buy a blue-ray player for $499, or, I can buy a pS3 for $499."

We could do that in November of last year too. The prices are still the same. They haven't increased anything.

# July 10, 2007 7:33 AM

jeffsfrelled said:

Does MS need a price drop? I think they probably don't, but whether Sony really dropped the price or added features the press and headlines are 'Sony drops price on PS3 by $100' and it certainly will help move a few more units. mostly because in stores the $499 PS3 has been missing since launch. If you wanted a PS3 you were going to pay $599 and that did change this week. You finally are able to get a $499 version again. MS I think could really look good by cutting each SKU $50 and simply saying "hey our console is almost 2 years old now, and we introduced some new chips that allow us to pass some savings onto our customers." I'm sure someone may say it was reaction to Sony's price cut, but the answer is just as simple "We've been on the market for 2 years without a price cut and selling units well. PS3 has been on the market 7 months and not selling as well as they hoped. Our price drop is in line with past console price drops. Our situations are not even remotely the same." I'll be tuning into the MS conference to see what if anything is announced.
# July 10, 2007 8:58 AM

Epsilon said:

I'm definitely happy that MS made a good decision with not putting the HD-DVD drive as the optical drive for the 360. With all of the back and forth, I'm going to sit on the bench until there is a fully functional (as in not just generic playback but all of the features) dual player at a reasonable price, or one of the two finally wins.

# July 10, 2007 9:10 AM

cc99999 said:

Considering the fact that the PS3's software library is worse than that of the Wii's (if that's even possible) the price drop is a non-factor for me.

I learned my lesson about having hi-priced systems that didn't pan out (NEO GEO, anyone?)

---

now before I get slammed and called an XBOT and all that other garbage I'd like to point out that I would like the PS3 to do well... b/c I import Japanese games and Conveni 200X and Diario just ain't cuttin' it.

# July 10, 2007 9:49 AM

AnubisGOJ said:

Hey.... Don't lump the Neo*Geo into that mess. I got years worth of enjoyment PLUS I had several games to enjoy (while I languish with just one for my PS3).

Besides, that Neo I bought got me enough recognition as a hardcore player to give me a chance to work in gaming journalism for a decade. I love my Neo and still play the games.

Seriously, without games- the PS3 will dwindle. Microsoft's smart in nabbing exclusives. All it takes it a Final Fantasy and Metal Gear exclusivity deal to seal the fate on most prospective PS3 purchasers.

---

Cyberboy shall return

# July 10, 2007 9:59 AM

vittala said:

I know MS has not announced a price drop yet in response but one thing they could do is drop the price of the wireless adapter which is grossly over priced. If you factor wireless support into the 360's price it makes the xbox a LOT less competitive price/value wise with both the PS3 & Wii. IMO the adapter should be no more than $50.
# July 10, 2007 12:39 PM

Xwar said:

Seems like Konami isn't impressed either:

http://today.reuters.com/news/articlenews.aspx?type=technologyNews&storyid=2007-07-10T071757Z_01_N09243556_RTRUKOC_0_US-GAMESEXPO-KONAMI.xml

http://www.gamespot.com/news/6173911.html?om_act=convert&om_clk=newstop&tag=newstop;title;2

"Mulling" multiplatform MGS4? Ay ay ay Sony.

# July 10, 2007 5:28 PM

Fiction N Lies said:

Consumers see price drops as a sign of weakness. I worked in retail and received many comments when price drops happened. "Because Nintendo/Sony/Microsoft x console dropped in price, it must be doing bad. I won't be buying one now." An odd mentality, but it's out there among many consumers. If the 360 doesn't drop in price following the PS3's, it's a statement that the 360 is going strong and doesn't need it.
# July 10, 2007 8:40 PM

vittala said:

You would have to think that if all consoles had a price break it would help Nintendo the most. I can see Nintendo selling the Wii minus Wii Sports for $200 or even $175 and really cleaning house while MS & Sony are still selling systems at $300+ even after a price break.

# July 11, 2007 7:36 AM

Maynard said:

I see your point, Ozy, and I completely agree. I think what MS doesn't "get" however is the fact that fans DO see this as a price drop - especially if they've been holding out for the 60gb model. And since the 20gb was dropped, there were no $500 options for a few months. MS doesn't understand what a 100 million userbase gives you for leverage in this war. People are now seeing an almost 2-year-old xbox that's the same price, and sometimes more expensive, as it was when it was first introduced. They also see Sony with a less than year old console already dropping the price. On top of that, the xbox is seen as broken. Who would you want to buy from? Which company, at this time, looks as if it's "reaching out to its customers" with outstreched arms and which looks like the stingy little rich boy clutching a hundred dollar bill? I'm all for MS and the 360, but I don't agree with not dropping the price. Now is the time, MS and you're floundering. I keep saying this... not that I expect it to make a difference, but I think it will become more obvious in the months to come that Sony WILL make up ground with this supposed price drop. Instead of playing the "react" game, be "proactive" MS and you will win this war easily. A $400 xbox isn't seen as the value it once was and your sales are going to suffer while the sales of your competitors will rise.
# July 11, 2007 12:18 PM

JimmyDanger said:

I have to agree with Maynard about the benefits of a "proactive" MS. I remember the "react" to the PS2 price drop on Xbox1 - free games and controllers for early adopters (I had a friend who had bought one at launch) - surely a financial sting - but one that convinced me to rush out and buy one as it clearly showed MS were serious (and the Halo/dvdremote/bundle was such a great deal) - and since I'd been sitting on the fence for a few months - sold me. Now scenarios will differ for different people (as in my case above - I din't see a "react" as a weak sign at all - rather that they were aware at the market forces at play), but I don't think Sony's price "drop" will hinder an upswing of sales because some consumers think it must be "doing badly" because the price has dropped. Most people just walk into a store - see what bundle of goodies they can walk off with (and also what games are still there or on the way that they want) for how much money and make their decision based on that. Unfortunately though - and sales of some more obscure "hardcore" titles prove that people are often looking at more than just the games. There is one other important factor to consider. Video Games are a luxury purchase - hardly essential. While people will buy nearly anything <$200 (hence why handhelds, late lifecycle consoles always sell more - they qualify more as impulse buys) - most people like to feel smart in their purchases, and think they're getting a "deal". The people who've been putting off a 360 purchase - be it for a price drop, lower voltage chips, Halo3 - whatever - have no added incentive to "jump in" at this stage - or even rationalise to themselves that "now is the time to buy". Sure they see a wealth of games (and I personally am in demo/preorder/release nirvana at the moment) - but the system is still the same price as it was when their friend had one over a year ago. I know people (in RL - 3 of them actually) who've been buying games - yet to purchase a system - just waiting for a price drop. There's no rush for them. For the next couple of months it seems they'll be waiting for some rationalisation to indulge in their luxury "hobby". Anyway - keep up the good, honest work Ozy. I appreciate the open discussion and critique you provide (and in some cases encourage) in this blog.
# July 11, 2007 11:25 PM

The Hedon said:

Wireless isn't an issue. The majority of gamers use wired. Wired is a waste to include. I don't want to pay for something I wouldn't use...nor do most people. People use wired because it's more stable, and offers a faster transfer rate and internet connection.

# July 12, 2007 7:52 AM

EvilFiek said:

Wow, this is really funny. So the "price drop" was only there to clear out the stock of 60 GB SKUs. As soon as those are sold we'll be back at 599$.

# July 13, 2007 4:26 AM

FieldEffect said:

What i'm *desperately* hoping for is that Microsft do a round of price cuts, trimming a little bit off the premium and the elite, but cutting a whole chunk off the core, getting it down to a level where people start to think of it as a no brainer. This would create a huge surge of 360 sales, resulting ultimately in more and better 360 games and more exclusives (and the demise of the PS3 - Yay :p ). The money they'd lose on subsidising the cheap cores would be made up in games royalties. Having said that, the comment about Sony finding it difficult to get 60GB drives in volume any more (and using that as a negative) is a bit weird considering that the 360 premium still ships with a 20GB. By the same argument shouldn't these be even harder to get in volume?
# July 13, 2007 4:35 AM

Valagas said:

Great call Ozy. http://www.joystiq.com/2007/07/13/sony-switcheroo-no-more-60gb-playstation-3-in-us-after-july/

# July 13, 2007 5:11 AM

BackScatter said:

@ Valagas : You beat me to it... :-) This move does seem to me to be something of a potential PR nightmare for them again. Sony isn't really changing their pricing as Ozy pointed out, only trying to add value for the dollars spent - So maybe this won't turn out bad (or more accurately - any worse) than their previous efforts. Good call, Ozy.
# July 13, 2007 6:14 AM

Ozymandias said:

Just keep an eye out for the real price cut just before Thanksgiving. $100 off.

# July 13, 2007 8:54 AM

Ozymandias said:

Sony announced a PS3 "value pack" (no sarcasm intended) for Europe at E3 this year. I've seen a bit of

# July 20, 2007 11:24 AM