XBox 360 and PS3 Price Cuts Except By End Of Summer

We've all been waiting for price cuts and if this article is accurate, we should see price cuts for both the 360 and PS3 by the end of the summer. There's no doubt in my mind that the 360 will get a $50 price cut, but I'll be very surprised if Sony drops the PS3 down $100. That would be an even larger loss then the billion they lossed this past quarter. They might drop it $50 at the most and that really won't be significant enough for gamers to run out and get a PS3. Even a $100 isn't low enough. I'm not a marketing representative, but if I was M$ marketing team I would drop the price of the 360 on the same day Halo 3 is released. That's smart marketing. If they really want to boost sales this holiday season include a FREE copy of Gear of War packed in with the 360 from Nov 23rd - Dec 24th. This limited time offer would easily boost sales of the 360. As for the PS3, Sony could do the same thing. Include a FREE copy of Resistance: FoM or Motorstorm with every PS3 sold for a limited time. These companies really need to learn how to market their systems and push sales. Anyways, here is the article on the price drops. This comes to you courtesy of http://biz.gamedaily.com/

http://biz.gamedaily.com/industry/feature/?id=16291

 Report: Price Cuts Ahoy!

Greenwald expects that Microsoft will actually make the first move by the end of the summer. He believes that a $50 price cut on the 360 is on the way (across all SKUs), making the Xbox 360 Core SKU the exact same price as the Wii and the Pro SKU only $100 more than the Wii - potentially a more compelling value. "I don't think it would impact profitability much, as the component costs must have come down quite a bit by now (been in production for 18 months)," Greenwald commented to GameDaily BIZ. "Plus, they will make a lot of money off of Halo 3, obviously, and more and more software royalties as the installed base keeps growing."

Feeling the pressure from Microsoft's price drop during the summer and the continued success of the Wii, Sony is expected to "give in" around October and lower the PS3's price by $100. Greenwald also notes that this is perfect timing right in advance of the highly anticipated Grand Theft Auto IV, which launches October 16. Greenwald said that leading publisher Electronic Arts stands to gain the most from a PS3 price drop this fall.

He also believes that another price cut on the PS2, bringing it down to that magic $99 price tag, is likely to happen this holiday season. The oft rumored PSP hardware redesign should also accompany a price cut, Greenwald said. Recently, video game retailer GameStop noted that sales of the PSP had doubled at its stores since Sony lowered the price on the portable.

Ultimately, the health of the industry requires price drops for the 360 and PS3, Greenwald explained: "With the PS3 retailing for $599, and the Xbox 360 for $399, consoles are more expensive than in past cycles. While the early-adopter gamers haven't flinched at purchasing the consoles, the industry will need mainstream users to buy the systems to get past the 5-10 million unit mark. If mainstream users are unwilling to pay $599 for a PS3, next-generation software sales could suffer."

Like many, Greenwald is also astounded by Nintendo's recent success. "We find it incredible that Nintendo has been so successful despite the fact that it is still all but impossible for the average person to walk into a store and buy a Wii," he remarked. "How much stronger will Wii software sales be once the console is readily available? We think there is still a lot of upside for publishers on the Wii as the supply/demand imbalance improves."

Gracious bump.

Bull, they're not going to cut the price of the ps3 so soon, especially when they're losing so much money already. And the psp  just had a price cut. Lanto

Since the launch of the PS3 Sony has reduced the size of the Cell, outsourced its production, geared toward emulation and not PS2 hardware and Blu ray diodes and parts have gone down in price allowing for even stand alone players to come down in price.  All of these things have been done to lower the price of the PS3.  I am pretty sure they can drop the price of their console with no problem.

They need to cut the price by $200 I think... Take risks to reap the rewards just like Kaz said in the sony press conf... CHRIS_K_UK

Just like he said "hit the crabs weak points for massive damage and RIIIIIIDGE RAAAAAAACER?"

I thought OXM reported the 360 Price cut in November. Let Halo 3 and GTA sell 360's. Then bring a price cut in novemeber before X-mas to sell even more.waynehead895

Exactly.  This is the most logical move.