The gathering Internet rumours have panned out as expected and Microsoft Corp. has indeed hacked down the European prices connected to its popular Xbox 360 videogame consoles.
Is the PlayStation 3 now under pressure following sweeping Xbox 360 hardware price cuts? Credit: Wili_Hybrid/Flickr.
However, resulting industry reaction now sees the spotlight of speculation shift to Sony Corp., the PlayStation 3, and whether the Japanese consumer electronics giant will attempt to counter Microsoft’s sweeping cuts with price reductions of its own.
Specifically, David Mercer of Strategic Analytics has offered that Microsoft’s European pricing move, which has left the Xbox 360 Arcade as the cheapest available console model this generation, now places renewed pressure on Sony to cut prices and maintain the PS3’s consumer appeal.
“Sony will be nervous that the PS3’s recent sales surge may fizzle out now that the premium Xbox 360 undercuts the PS3 by £40, and the cheapest Xbox model is almost half the price of a PS3,” commented Mercer in a Next-Gen.biz report.
Mercer also added that Sony is likely to try to hold off on unveiling any such price alterations until later on in the year, although close monitoring of daily sales performance in light of Microsoft’s cuts could well lead to earlier changes being implemented should Xbox 360 performance experience extreme upturn.
Microsoft’s confirmed European price changes, which come into effect this Friday, have seen the company’s 120GB/HDMI-equipped Xbox 360 Elite drop to 370 Euros (260 GBP), while the 20GB Premium model shifts to 270 Euros (200 GBP), and the basic Xbox 360 Arcade bundle undercuts both the PlayStation 3 and Nintendo Wii at a mere 200 Euros (160 GBP).
“This is a real mass market entertainment proposition,” said Chris Lewis, VP of Microsoft Interactive Entertainment Europe, in an MCV article. “Through this price point, we can reach and introduce a much broader array of consumers to hi-def gaming. With 17.7 million units worldwide installed base we’ve got a real level of momentum – and Europe is a critical geography in that.”
AgreedMar 11th, 2008 - 20:59:49
I've owned a PS3 since launch, and I gotta say, Sony needs to respond in kind. I say bite the bullet, forget about being in the 'black', and lower the cost of the high-end PS3 model to $200. Flood the market with PS3's.
Morne
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