Sony Makes The First Move......PS2 Price Down To $199 (1 Viewer)

[Dave Falasco]

Amen, Halleluiah, and pass the corn chips, Romier! Good post as always.

 

[Masood Ali]

Steve, you assume that because Sony didn't announce the price-cut weeks ahead, that it didn't have it planned. This would also mean you assume all business stategies are announced to the public, which is not true.

Microsoft had an inflated price-cut balloon just waiting to burst during E3. Sony played their cards smartly by letting the industry know it wasn't planning on any price cut, inflating Microsofts balloon even more. Then a week before the big E3 announcement, Sony deflates the air surround Microsofts price drop by getting theirs out first.

 

[BrianB]

Didn't Sony announce last month they'd be "reviewing" the PS2 price around E3? Why is it such a shock, ignoring the fluff PR piece last week?

 

[Morgan Jolley]

Assuming a 25% market share for Xbox results in 3.5 million consoles sold instead of 2.5 million. If each console results in four titles sold, this is an incremental increase of 4 million XBox games sold, which along with the peripherals, should more than offset the $100 loss per unit

The thing is, with the sales being as bad as they are in Europe, Japan, and now America, plus a price drop in each territory less than a year from its launch, that $100 loss per unit is going to get a lot bigger. Especially since they started giving money back to people who bought X-Boxes in Europe.

 

[Ron Gilbert]

While MS does not want to lose more money than they have to on the Xbox hardware, the possibility of a further price cut in reaction to Sony was considered before the launch of the system. So MS choose to deal with this scenario as a consequence of launching and supporting the Xbox. Also, there was a story a few days ago (by Reuters, I think) about MS succesfully renegotiating the cost of supplies for manufacturing the Xbox - Nvidia being the lone exception, of course. So they may not be hurting too much from this price drop.

 

[Chris Beveridge]

Microsoft had an inflated price-cut balloon just waiting to burst during E3. Sony played their cards smartly by letting the industry know it wasn't planning on any price cut, inflating Microsofts balloon even more. Then a week before the big E3 announcement, Sony deflates the air surround Microsofts price drop by getting theirs out first.

Amusingly, if you reverse the company names, and Microsoft had done this, there would have been cries of MS sucks and all sorts of other interesting things. Sony does it and they get praised.

 

[Masood Ali]

It's a smart business move regardless of who did it. Maybe the MS haters would have bashed MS for doing a similar sly move, but it doesn't take away from the fact that it was a good strategy (from any point of view).

 

[Dean Cooper]

The GCN isn't in third place. Its being quiet, yes, but its not in third. Its more of a quiet second, actually, based on the sales charts for games.

hehe this stuff is great. Morgan you need an Xbox to clear some of that Nintendo brain washing out. I swear they put subliminal messages in their games.
Dean

 

[Steve Clark]

The GCN isn't in third place. Its being quiet, yes, but its not in third. Its more of a quiet second, actually, based on the sales charts for games. Making the PS2 and X-Box $200 does take away some of the GCN's competitive advantage.

Show me one link that shows the Gamecube is currently ahead of the XBox in total console sales in the United States. The Gamecube is bringing up the rear. All you talked about Morgan prior to the launch of Xbox and the GC was that the Xbox was priced too high relative to the Gamecube. Now you say the $100 price advantage that the GC enjoys is no big deal. Typical. Countless parents out there have probably bought the GC over the Xbox when doing price comparison after Little Johnny said he wanted an Xbox or GC.

 

[Masood Ali]

The Xbox is ahead of the Gamecube in the US.

In the other two markets.......

 

[Calvin Watts III]

I totally agree. Romier has said it best.
Steve, I do remember reading somewhere (EGM,maybe?) that just recently,GC hardware sales did pass Xbox sales. (in the USA,that is)
Not that it matters. Its a free-for-all now. The blows & quips are gonna start flying, & the true winners are gonna be the gamers!
Like me.
Calvin
PS: If broadband prices come down to around $25 or so....that changes the whole ballgame,IMHO.

 

[Dean Cooper]

Well I just got back from Future shop here. Both the Xbox and the PS2 are marked down to $299 Canadian. Looks like MS gave the word today too. It's cool to see all three at the same price point.

Dean

 

[JoshF]

Hey guys... I'm on my way out for the day - but wanted to say that this is a great discussion. It's a pleasure to talk about this stuff without it turning into an adolescent fanboy fest.

I love you guys!

 

[Dave F]

The big news for me is the PS1 price drop. Now I just need to rationalize a $149 PS1/LCD combo purchase. =)

-Dave

 

[Morgan Jolley]

Now you say the $100 price advantage that the GC enjoys is no big deal. Typical

The X-Box doesn't have exclusive titles with brand recognition like Nintendo does. That was also one of my reasons for getting a GameCube over an X-Box.

 

[StevenK]

The X-Box doesn't have exclusive titles with brand recognition like Nintendo does

Didn't Nintendo have 15+ years to develop those "brands" such as Mario, Zelda, Metroid, etc... How can you knock against the XBox on that aspect after being in existence for all of 6 months?

btw, to chose a bad game with a "brandname" over a good one without a "brandname" seems like a bad move. Halo has no recognizable "brand"...thank god that didn't prevent me from playing it.

 

[Masood Ali]

Well things are getting hectic.

Rumours are all over BBS's across the 'net that Microsoft upped their price-drop date to tomorrow.

Even though it's a rumour, I'll bet a pretty dime on it.

 

[Rob Lutter]

according to the TEAMXBOX forums... XBOXen have sold for $199 today in Rochester, NY.
Damn, this is getting exciting!!!

 

[Brian-W]

I love all these "X-Box vs. (insert console)" battles.

The PS-2 price drop was planned since January. And X-box was hardly a threat then. The price drop happened for two reasons: the yen vs. the dollar (exchange rate) and because the broadband adapter is due out soon.

That's it. Nothing more, nothing less.

Sony has a worldwide installed base of 30 million units. Yes, X-Box is doing well in the U.S. but is failing miserably outside the U.S. That hurts, especially since Microsoft is counting on third party publishers/developers in Japan and Europe in addition to the U.S.

No, I'm not a PS-2 proponent, I'm just a lowly game developer. But if the PS-2 really sucks that bad vs. X-Box, Sony wouldn't have sold 30 million of 'em.

 

[Todd H]

Anyone have any links to U.S. game console sales figures for the end of April 2002? I haven't seen any released in a while.