It's the question every potential buyer wants to know: Will Microsoft respond to Sony's $50 PS3 price cut with an Xbox 360 price cut of its own? After all, it didn't take long for Microsoft to match the lower price of Sony's PS3 Slim, first unveiled at Gamescom two years ago. But over a week in and there's still no sign of a price cut coming from Redmond. At $200 for the 4GB Xbox 360 and $300 for the abnormally large 250GB model, Sony's $250 160GB PS3 not only bests the 'box on hardware (hello Blu-ray!) but on price as well.
So what's Microsoft going to do about it? Nothing, apparently. When asked if he was "feeling any pressure to move [price] down a little" in response to the PS3 price cut, European Xbox bigwig Chris Lewis told VG247 simply, "No." He elaborated, "We think we offer great value now," pointing to features like Xbox Live and Kinect, but insisted, "We're happy with our position." If we were in Lewis' position, tasked with beating back Sony's European sales lead, "happy" probably wouldn't be our first response to Sony's aggressive pricing.
Reader Comments (51)
Posted: Aug 24th 2011 10:08PM LimitedVertigo said
By now I'm surprised when someone doesn't own both systems. I did in the past and will hopefully be getting another 360 this Holiday season.
Posted: Aug 25th 2011 9:11AM Neovampyre said
@Foetoid
I think I'm more surpirsed to hear the phrase hardcore gamer and Wii in the same sentence. I am a hardcore gamer, I've been gaming since the days of the Commodore Vic 20 and have had a gaming platform to hand ever since. My children won a Wii but would rather use it for BBC Iplayer than the current selection of games on offer.
The main reason I own a 360 is simply the choice on offer compared to the PS3. Microsoft has no intention of a price reduction because their competative edge definately doesn't rely on pricing but more on monopolising the francise.
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I think I'm more surpirsed to hear the phrase hardcore gamer and Wii in the same sentence. I am a hardcore gamer, I've been gaming since the days of the Commodore Vic 20 and have had a gaming platform to hand ever since. My children won a Wii but would rather use it for BBC Iplayer than the current selection of games on offer.
The main reason I own a 360 is simply the choice on offer compared to the PS3. Microsoft has no intention of a price reduction because their competative edge definately doesn't rely on pricing but more on monopolising the francise.
Posted: Aug 25th 2011 11:14AM Dance Mofo said
@Neovampyre I've been a hardcore gamer since the Odyssey days when KC Munskin and KC Crazychase were the games to play.
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Posted: Aug 24th 2011 10:09PM SgtDookie said
"We think we offer great value now," pointing to features like Xbox Live and Kinect"
So hes saying that the extra 50 dollars you end up spending on a 360 you make up for by having access to Xbox Live and the ability to buy a Kinect?
So hes saying that the extra 50 dollars you end up spending on a 360 you make up for by having access to Xbox Live and the ability to buy a Kinect?
Posted: Aug 24th 2011 10:28PM FrodoTBaggins said
@wario2295
"Guy ain't got no swag"
That's awesome, definately the most gangster comment I've read in response to the pricing strategies, and marketing spin of Microsofts executive team.
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"Guy ain't got no swag"
That's awesome, definately the most gangster comment I've read in response to the pricing strategies, and marketing spin of Microsofts executive team.
Posted: Aug 25th 2011 12:19AM wrongThinker said
@SgtDookie Seriously... and it's even worse than that! XBL is $50 PER YEAR and the Kinect is $150!!!
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Posted: Aug 25th 2011 4:44AM killer rin said
@Virus one
But if your paying any more than $30 a year for gold YOUR DOING IT WRONG
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But if your paying any more than $30 a year for gold YOUR DOING IT WRONG
Posted: Aug 25th 2011 9:46AM Vcize said
@SgtDookie
I don't see your point. He never said they were free, just that you have to have a 360 to access them, and for some (many) people that IS a selling point.
It's no different than Directv or a million other things. Directv is more expensive than Dish, but if you want NFL Sunday Ticket then you have to gete Directv. Sunday Ticket isn't free, but it's still a selling point of Directv and is the reason that many people (including me) have it.
Even further, don't people (both execs and people on here...heck probably you yourself have said it before) constantly argue the merits of one system or another based on exclusive games? You realize those games aren't free, right? If you say that people should buy the PS3 because then they can play games like Uncharted 3, KZ3, etc it's not like they get those games for free. You're paying for the console to get ACCESS to the ability to pay for those games.
Something doesn't have to be free to be a selling point, as is evidenced by the countless millions of people that have made their choice based on paid extra services like XBL or Sunday ticket, or have made their choice based on paid extra items like Kinect or Move or some stupid Wii Scale thingy or any various number of exclusive games.
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I don't see your point. He never said they were free, just that you have to have a 360 to access them, and for some (many) people that IS a selling point.
It's no different than Directv or a million other things. Directv is more expensive than Dish, but if you want NFL Sunday Ticket then you have to gete Directv. Sunday Ticket isn't free, but it's still a selling point of Directv and is the reason that many people (including me) have it.
Even further, don't people (both execs and people on here...heck probably you yourself have said it before) constantly argue the merits of one system or another based on exclusive games? You realize those games aren't free, right? If you say that people should buy the PS3 because then they can play games like Uncharted 3, KZ3, etc it's not like they get those games for free. You're paying for the console to get ACCESS to the ability to pay for those games.
Something doesn't have to be free to be a selling point, as is evidenced by the countless millions of people that have made their choice based on paid extra services like XBL or Sunday ticket, or have made their choice based on paid extra items like Kinect or Move or some stupid Wii Scale thingy or any various number of exclusive games.
Posted: Aug 25th 2011 1:03PM Regularpants said
@Vcize
No way. Now you're just making too much sense. Try again when you want free stuff too.
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No way. Now you're just making too much sense. Try again when you want free stuff too.
Posted: Aug 24th 2011 10:12PM A Sandwich said
I thought they would drop the 360's price it but I also don't think that they absolutely need to. $50 is not an overly aggressive cut, so an immediate response isn't required. This is especially true given Kinect's reception when compared to Move. (Not saying that one is better than the other but word of mouth and brand recognition is clearly favoring Kinect at the moment.)
Posted: Aug 24th 2011 10:15PM (Unverified) said
Effin' hell, I have a PS3 (Whom I love and do not fear) but I've been meaning to get a 360. I have a ton of gamer friends and I can't enjoy the usual festivities with half of them. Totally feel like a bad friend.
Posted: Aug 24th 2011 10:23PM MystcLazrDragon said
@(Unverified) Hey if you have the money go for it, that way you never miss out on exclusives for either system. Make sure you pick up Alan Wake, it's well worth it.
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Posted: Aug 24th 2011 10:17PM Mustang Fanboy said
After a couple of months of being outsold by PS3 they will cut it, I'm 100% sure.
Posted: Aug 24th 2011 10:22PM Styli said
When the sales drop hard, then we'll see a price drop. If people want the price of the 360 to be cut, all they have to do is wait. If enough people wait, then sales will fall. They're selling steadily at the moment (with the exception of Japan).
I don't think they're really looking to out-sell Sony at this stage in the Gen Cycle. They've already got their sights on the next generation, I reckon, and if we don't see an announcement regarding the next Xbox by E3 2012, I'll be very surprised. Then they'll probably cut the price of the 360 at the same time though.
I don't think they're really looking to out-sell Sony at this stage in the Gen Cycle. They've already got their sights on the next generation, I reckon, and if we don't see an announcement regarding the next Xbox by E3 2012, I'll be very surprised. Then they'll probably cut the price of the 360 at the same time though.
Posted: Aug 24th 2011 10:24PM Shockwave said
I don't think this guy understands how important 50 bucks is when beating out competition. Just as having a Blu-Ray drive didn't help the PS3 much when it was more expensive than the Xbox 360, so doesn't having the ability to purchase Live or a Kinect.
Other than the "hardcore" gamers who view sites like this, most people who buy gaming systems (read: parents), don't even read the box. I've seen first hand how a lower price point can sell a system that's either not as good or significantly older. When said two systems are actually level on the playing feild, 50 dollars can be the difference between sold and unsold stock.
Other than the "hardcore" gamers who view sites like this, most people who buy gaming systems (read: parents), don't even read the box. I've seen first hand how a lower price point can sell a system that's either not as good or significantly older. When said two systems are actually level on the playing feild, 50 dollars can be the difference between sold and unsold stock.
Posted: Aug 24th 2011 11:37PM A Sandwich said
@Shockwave
But the cheapest 360 is still $50 less expensive than the cheapest PS3 ...
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But the cheapest 360 is still $50 less expensive than the cheapest PS3 ...
Posted: Aug 25th 2011 3:29AM A Sandwich said
@Cavall
I agree, but I don't know that my mom does.
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I agree, but I don't know that my mom does.
Posted: Aug 25th 2011 9:24AM (Unverified) said
@pradius I agree, everything I watch is Digital it seems like. If it ever came down to it I would rather spend $75 or less on a Blu-Ray player as although the PS3 has one its not its strong point and most people that I have seen do that regret it and say its not worth it at all.
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Posted: Aug 25th 2011 9:51AM Vcize said
@Shockwave
Won't ignorant parents who just look at the price sticker just pick up the cheapie version of the 360?
Granted, of the three (real 360, PS3, arcade 360) it's definitely the worst value, but if your argument is that typical gamer parents don't know anything about the console features and value and just automatically pick up the one that's $50 cheaper, then it seems like MS has that covered as well with the cheapie 360.
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Won't ignorant parents who just look at the price sticker just pick up the cheapie version of the 360?
Granted, of the three (real 360, PS3, arcade 360) it's definitely the worst value, but if your argument is that typical gamer parents don't know anything about the console features and value and just automatically pick up the one that's $50 cheaper, then it seems like MS has that covered as well with the cheapie 360.
Posted: Aug 24th 2011 10:41PM skullivan said
They're including 5 games with the purchase of the console, I'd hardly call that "doing nothing". That's unprecedented as far as console pack-ins go. Granted they're downloadable versions, but they're still identical to the disc versions you'd pay $20-$30 for.
Posted: Aug 24th 2011 10:46PM tendoboy1984 said
4GB of space is pathetic. You can do better than that MS. There are quite a few 360 games that require a hard drive, and by not including one in the basic package is a bit of a ripoff.
"Hey, you can get an Xbox 360 for $200! But it doesn't come with a hard drive, so you can forget about downloading any games, and you won't be able to play the retail games that require a hard drive... But the console is cheap! And you can always give us $100 more for a hard drive separately!"
"Hey, you can get an Xbox 360 for $200! But it doesn't come with a hard drive, so you can forget about downloading any games, and you won't be able to play the retail games that require a hard drive... But the console is cheap! And you can always give us $100 more for a hard drive separately!"
Posted: Aug 24th 2011 10:54PM Wizardsofwaverly said
They probobly won't cut the price perse but probably make it more appealable. Larger HD maybe bundle a couple gamers. Stuff like that
Posted: Aug 24th 2011 10:55PM Wizardsofwaverly said
Meant games, dang iPhone auto correct thingy
Posted: Aug 24th 2011 10:56PM KentBrockman said
This is really the only response he can give, obviously he won't reveal a price drop coming. But a price drop is most likely coming, and has probably been planned for a while (Sony's price drop was no surprise to them I'm sure). There's no way they will go into the holiday season more expensive than the PS3.
Posted: Aug 24th 2011 11:10PM Hawaii Jeff said
.....he neglects to mention the "value" of Live & Kinect are both things you have to pay extra for.
Posted: Aug 25th 2011 12:02AM tendoboy1984 said
Suddenly, this "one controller per console" thing with the Wii U doesn't sound so bad. Keeping the entrance costs down = happy customer.
Posted: Aug 25th 2011 12:12AM DannyL7 said
He should feel pressure right around September when FIFA 12 comes out.
Posted: Aug 25th 2011 12:34AM civilciv said
Thanks for reassuring everyone.
Posted: Aug 25th 2011 2:04AM Bro said
For a console that's been out for nearly 6 years and doesn't even have a blu ray drive, it sure is expensive. The 360 4GB should be $149 and the 360 250GB should be $199. Next year they should give it another $50 price drop and a free year sub to Xbox Live.
Posted: Aug 25th 2011 9:11AM Tephlon said
@Bro
Couldn't you say the same about the Wii, given it's hardware?
I do agree though- a year of XBL gold with a new console purchase is a great idea. Get them hooked so they'll want to pay when it expires. This is the sort of strategy MS has never really understood, but it works very well.
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Couldn't you say the same about the Wii, given it's hardware?
I do agree though- a year of XBL gold with a new console purchase is a great idea. Get them hooked so they'll want to pay when it expires. This is the sort of strategy MS has never really understood, but it works very well.
Posted: Aug 25th 2011 2:30PM Bro said
@Tephlon The Wii definitely deserves a price drop since it's using dated hardware that's cheap to produce. The Wii should be atleast $99 and bundled with a couple games. I got a feeling that they may either drop it to $99 or bundle it with 2 games at the current price.
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Posted: Aug 25th 2011 5:57AM Rain said
If I had neither console and was presented with a PS3 or Xbox - since they are now the same amount - I would have to buy the PS3.
Blueray and free online multiplayer make it an easy choice.
Blueray and free online multiplayer make it an easy choice.
Posted: Aug 25th 2011 7:49AM iTz FiNaL said
The 360 doesn't need a price cut IMO, the price is more than fair. Even though LIVE costs extra if you want to play online, it is still good value for money. The Xbox 360 250 GB slim costs £160 here now.
Posted: Aug 25th 2011 8:23AM (Unverified) said
Holy **** at the blatantly trolling wording of this article. Chip on your shoulder, Chris?
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