Analysts: MS needs to issue a 'real' 360 price cut
by Dustin Burg 
{ Jul 22nd 2008 at 8:00AM }
Hot on the heels of Microsoft's "mock" price cut where they slashed the price of the 20GB HDD Xbox 360s to $299, only to replace the $349 SKU with a 60GB HDD, Signal Hill analyst Todd Greenwald is demanding a true 360 price cut to stay competitive with the Playstation 3."We remain very sceptical [sic] of Microsoft's pricing strategy and competitive positioning versus the PlayStation 3", Greenwald recently told investors saying that "at USD 349, with a 60GB hard drive, we just don't think it is a compelling product compared with the PS3 at USD 399 with an 80GB hard drive (along with more processing horsepower, Blu-ray, Wifi, HDMI, and going forward, more exclusive content)." Greenwald further picked apart Microsoft's E3 strategy mentioning that "Sony's biggest announcement was a strong counter-punch to Microsoft's USD 50 price cut on the 360", adding that "beyond Gears of War 2, Microsoft doesn't seem to have the same library of exclusive, must-have titles."
While we don't agree with Greenwald when it comes to the Xbox 360 lacking "must-have titles" or being less of a gaming powerhouse, we tend to agree that Microsoft missed an opportunity with their console pricing. Clearancing out the 20GB HDD models is fine by us, but we truly think a price drop across all models would have helped team Microsoft stay competitive with Sony and Nintendo. Especially in Europe. What say you fellow fanboys? Will a 360 price drop be necessary going into the holidays or will the 360's games library and content partnerships be enough to win the 2008 console war?
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Reader Comments (Page 1 of 2)
tan @ Jul 22nd 2008 8:27AM
'PS3 at USD 399 with an 80GB hard drive (along with more processing horsepower, Blu-ray, Wifi, HDMI'
yes many of that is the true case but all 360's have hdmi now.
so he is incorrect in stating that the ps3 has the advantage of hdmi over 360.
gamedude420 @ Jul 22nd 2008 5:17PM
actually he is correct.
the ps3 does have an advantage it has hdmi 1.3a
xbox 360 uses 1.2
tan @ Jul 22nd 2008 5:31PM
he doesn't say that though!!!
-_-
ericdrum @ Jul 22nd 2008 8:27AM
"and going forward, more CRAPPY exclusive content". Fixed. My Wii has way more exclusive content than my 360 too.... and I own 3 Wii games and over 40 360 games.
RedSonRising @ Jul 22nd 2008 8:34AM
"Microsoft doesn't seem to have the same library of exclusive, must-have titles."
id like to know what titles theyre talking about.. xbox 360 has an enormous stable full of good games and several standout blockbusters.. ps3 has a few good exclusives but i think xbox more games that i want to play (gears anyone? halo?)
a price drop would be nice but i dont think its a dealbreaker.. if the arcade included a hdd for the same 299 that be a 'price cut' in my eyes but not to analysts.. analysts who probably dont own a system and havent played a game on a next gen console..
Snowman @ Jul 22nd 2008 10:19AM
I think he meant going forward, so I don't think he was counting the titles that are already out. Still its always pointless to get too caught up in what analyst say.
As someone who know has both systems I've been quite happy with the games available for both.
RedSonRising @ Jul 22nd 2008 11:00AM
@Snowman said...
I think he meant going forward
ps3 has a decent future lineup but im still not impressed.. i want games, dlc, updates, patches et all and i want it all today.. promising a 10 year run for the ps3 is nice, but i cant wait for year 4 or 5 for a game i want to play..
perfect example: m$ just showed a new dashboard at e3.. they didnt tease us forever like sony's Home program, they just give us more in a timely fashion..
right now m$ is delivering product while sony talks about how good their product is gonna be.. by the time the ps3 has a solid stable of truly next gen titles itll be 5 or 6 years old and ps3fanboys will have missed out on nearly half of this console generation's lifetime..
andyg8180 @ Jul 22nd 2008 8:35AM
I have no clue what E3 that guy was watching, but Sony didnt pull out any "must-have" blockbusters...
And what was Sony's "biggest announcement" again? I didnt understand that part... The 40 gig got re-sku'd with an 80 gig HDD... No backwards like the original 80... So its not a price-cut, its an introduction of a new product..
Where do they find these old guys with old balls to write these articles???
joey @ Jul 22nd 2008 9:39AM
You can bet that SONY is going to market that big "80gb" and that big "ONLY $ 399"?
Comparing to XBOX "60gb" and $ 349?
Oh, and the damned WII @ $ 249.
Now the Xbox is between a rock and a hard place.
andyg8180 @ Jul 22nd 2008 9:53AM
@Joey... this is true, but XBL is much more successful and theres so much on marketplace btwn Netflix, the games, and RockBand DLC to keep microsoft making big moves
I think 349 is a great price... i think 299 is an even better price lol... But for gaming, i would choose my 360 over my ps3... For watching DVD's and blu, obv i would choose the PS3... But now with Netflix, i will be spending a lot of face time with my 360 since there are so many TV shows to watch...
The wii is the "pet rock" of our era... I cant wait till the trend dies and never comes back...
frank @ Jul 22nd 2008 8:38AM
Considering that it's $349USD for the 60GB Xbox360 then another $90USD for wireless and another $399USD for a bluray player the cost of an equivalent system to the PS3 comes in at $838USD!
Yeah...MS needs to wake up and slash some prices.
That said, I love my 360 and the games I can play on it. I really enjoy LIVE. Plus I dont have to use that hideous PS controller. And thats what really matters to me.
buff0x @ Jul 22nd 2008 9:29AM
They need to have a pricecut soon, for £25 more in the uk, you can buy a similar gamed bundle, this is with the elite vs the 40gb PS3, and for that extra £25 your getting all the extra features. And with a lot more people going HDTV, they will be choosing the PS3 if they can only afford one console, just because of the blu-ray.
Swamp Donkey @ Jul 22nd 2008 8:45AM
Come on, this is how it always works. They won't cut the price on the 60gb units until all of the 20gb are sold out at $299. When they are, the 60's will drop to $299 within weeks.
john @ Jul 22nd 2008 9:20AM
Swamp, its unlikely Microsoft will drop the 60GB sku to $299 after being on the market & priced at $349 for just a few months. Can you imagine how fumed those buyers would be? Now, I agree with the analyst..Microsoft needs a real price cut. I think the Elite sku is dead...it does not measure up to the just announced 80GB PS3 at $399. So heres a radical idea for Microsoft/XBox. Drop the Elite Model and make the Pro model available in black. Finally, drop $20 off during the holiday (that shouldn't upset those who bought 60GB sku at full price)...
$259 - Arcade
$329 - XBox 360 (White or Black)
If Microsoft decides to keep the Elite sku around...it desperately needs to be priced at/below $399.
xFenixKnightx @ Jul 22nd 2008 8:46AM
Okay, heres my take on what they should do this Holiday.
Arcade $239.99 *cheaper than Wii!!!
wired headset, Hd cables, 512mb mem card, 1 free month of LIVE, Scene it or some *New good XBLA games
60gb Premium $299.99
w/2 bundled games, HDMI cables, 3 free months LIVE, wired headset
120gb Elite $399.99, HDMI cables, 3 free months LIVE, *Wifi adapter, *wireless headset, Halo3/Gears of War included
BAM, Sony just got PWNED!!! Damnit I need to call MS and get a job there NAO!!!
Raheem @ Jul 22nd 2008 10:11AM
You need to learn about business and how to turn a profit :P NAO!
Mythor @ Jul 22nd 2008 8:49AM
The 360 also has Fable 2, Halo Wars and probably other things.
The PS3 has... Motorstorm and Resistance?
There's some nice exclusives on both sides of the fence, but many of the really good games are multiplatform now. I don't really see that as bad for the 360.
The 360 has had a price advantage over the PS3 for a long time, yet people still see the PS3 as the better buy. I don't think it's price alone that is motivating the PS3 purchasers.
(Also, "[sic]" implies an error. Sceptical is not an error, merely an alternative spelling.)
Boff @ Jul 22nd 2008 9:10AM
I was just about to ask that. 'Sceptical' is spelled 'sceptical'.
Alternative spelling? I thought that was the only spelling?
I've just said the word 'sceptical' too many times in my head and now it just sounds weird! :oP
Jay @ Jul 22nd 2008 12:45PM
the common spelling is skeptical.
Mythor @ Jul 22nd 2008 12:53PM
I realise that's the common spelling, Jay. That doesn't mean it's the only *correct* spelling.
It's equivalent to putting a [sic] after "colour", if that helps you understand why it's wrong.
Wise Guy @ Jul 22nd 2008 8:49AM
What are these "must have" exclusives? So Sony shows a bunch of their own exclusive shooters and we're supposed to go out and buy one. 360 seems to have a MUCH more diverse library. Seems to me that Sony is trying to play catch up in the US by coming out with more shooters (who would want to shooters with a PS controller??).... I wouldn't bank on Sony having much of a strategy or identity at this point. They've lost touch with their audience.
e.Missark @ Jul 22nd 2008 1:07PM
I hate the 360 controllers because its hard to play shooters with them. The buttons are too small, too far apart and the analog sticks are in the wrong place. The controller is too big and heavy. I 've always liked the PS3 controller better.
HoPhoSho @ Jul 22nd 2008 1:51PM
@e.Missark
Then I'm guessing you played a PS3 before a 360. I would say the exact opposite, and I had a 360 first. To me the PS3 controller feels light/cheap, the left stick is positioned wrong, and the "d-pad" buttons are difficult to use.
Aiming in Resistance was a major chore and difficult to get used to. Also, Resistance is considered a good game? I don't get that -- it's a run-of-the-mill shooter. Who's seriously looking forward to Resistance 2? (Not saying the PS3 has no good games, just saying Resistance isn't one of them.)
sambob117 @ Jul 22nd 2008 9:07AM
it would make sense for ms to keep the pro at $300 and drop the elite to $400. But it is still possible for the prospective new titles to carry xbox sales but I doubt at the levels it has previously held.
Patton @ Jul 22nd 2008 8:53AM
All those "must-have titles" for the PS3 aren't far enough along in development to show anything other than CGI movies. If I want to watch CGI, I'll go see Wall-E.
I have to say that I am getting tired of hearing about these "analysts" and their predictions, and in this case, demands, regarding gaming. Do people actually pay these idiots? Check this out guys, I'm a gaming analyst:
"Gears of War 2 will outsell every game ever made and will no doubt top charts, topple regimes, and it's soundtrack will replace the National Anthem for the U.S."
That'll be $50,000 please.
Bluemanrule @ Jul 22nd 2008 9:06AM
@ Swamp Donkey
I hope you are correct. The 360, although a premium system, cannot afford its premium pricing. I know that's the only reason several of my friends & family still game in the last generation.
@ everyone else
Now, being a 360 & PS2 owner, Sony's controller is great. It's a natural fit for many people and, lest we forget, not very dissimilar from the Xbox/360 controller. Some people just speak through blind hate and don't want to see the truth. Just look at the buttom layout.
Gears will sell tons this holiday, as will Fable 2. The 3rd party library will rock this holiday season. Between GH: WT, Rock Band 2, RE5, FallOut 3, Tomb Raider Underworld, Dead Space, Dark Void, Mirror's Edge, etc..., execution on each console will determine our 'winner'.
Oh, and for the record, they both 'win' because we're giving our money to both Sony and Microsoft. We win with great entertainment experiences.
Wise Guy @ Jul 22nd 2008 10:23AM
Please. Hate has got nothing to do with it. The playstation controller has not been updated since PS One first introduced analog in their controllers. The 360 has at least modified the body since releasing the ridiculously big arcade pad that was initially launched. The offset analog sticks also feels more comfortable than 2 symetrical sticks... especially for shooters. Maybe it's a matter of opinion... but it's not hate for Sony.
pkilla @ Jul 23rd 2008 12:17PM
I was always a PS2 fan and so naturally I liked the controller but when I got my 360, I was like this is what a controller supposed to feel and look like. I played resistance and was wishing that I could use my 360 controller. I agree that resistance was not the best shooter around, it was ok but it was no COD4 or GRAW2
ScottyGEE @ Jul 22nd 2008 9:07AM
It already has a massive install base in America, Microsoft should focus on price cutting in the rest of the world.
Seriously, with your weakening dollar, we Aussies pay the same price for an Arcade than you do for a Pro! Fuck that. I'm sure every other region gets fucked like us, maybe even worse.
Half of the 360's install base is in America, the thing and all its games are cheap there, they don't need to reduce costs there and its pretty clear that people will pay for it.
Boff @ Jul 22nd 2008 9:14AM
To be honest, whenever I see that we're (UK) getting ripped off versus the US I always think to myself "Oh well at least I don't live in Australia"
Sorry mate!
Although saying that, I don't really know what the situation is like over there now. This is going back to pre-movie downloads and such.
But you get more sunshine! Swings and roundabouts.
xFenixKnightx @ Jul 22nd 2008 9:13AM
I just think MS is underestimating the power of Bluray and Sony acts like if its not a factor in sales. PFFFFFTTT!!! Yeah fucking right, its one of the MAIN reasons that PS3 has been outselling 360 lately.
If the HDDVD/Bluray format war was still going on I doubt PS3 would be selling so much. Think about it, since it sbeen over PS3 has gained a lot of ground. Not because of anything else. MGS4 just came out and is helping but what else? Thats a hardcore game.
It's Bluuuuuray people, also one of the main reasons I bought my PS3.
Doug @ Jul 22nd 2008 5:01PM
The Blu-ray drive might be one of the main reasons for the uptick in PS3 sales, but it doesn't necessarily mean that games are selling for the console. Based on the numbers I've seen, a lot of people that are buying the PS3 are buying it JUST for the Blu-ray and aren't buying games.
If you compare game sales numbers between the 360 and PS3 it's pretty clear that PS3 game sales are relatively slow especially when balanced against the number of consoles sold. And since Sony isn't making anything on the consoles, the platform isn't making much. That also doesn't bode well for game developers, who tend to like to sell their products.
Jared @ Jul 22nd 2008 6:55PM
+1.
Blu-Ray is what got me to buy one.
I DO think that with the economy tanking, BOTH ms and sony need to realize that until there's an up-swing in people's disposable income, a new game console is going to take a backseat to a LOT of things.
Magic Whiskey @ Jul 22nd 2008 9:15AM
As a clear-headed GAMER over 360 owner, I have this to say:
Sony's E3 showing did kick some ass. They finally showed off games I am personally interested in learning more about (Infamous, Resistance 2), and the featureset and price of the new 'standard' Playstation 3 is competitive, with or without PS2 backwards compatibility.
With that said, the 360 has a better library going into the Holiday season, a better price point, LIVE, and generally more to offer Joe Sixpack than a PS3 does..right now.
I would have to say a price reduction on the Elite model would be a good call within the next 8-10 months. I can see that dropping $50 to match the PS3's 80GB standard unit. That would probably drop the 60GB unit about $25-40 but nothing insanely lower than it is now. Gotta keep out as many little kids as possible, X3F.
RedSonRising @ Jul 22nd 2008 9:26AM
@frank
$349USD for the 60GB Xbox360 then another $90USD for wireless and another $399USD for a bluray player the cost of an equivalent system to the PS3 comes in at $838USD!
subtract $399 for the bluray player im never gonna buy (didnt buy the hddvd add on either) and another $90 for the wireless adapter that isnt necessary to get online and the price comes in at, oh wow, $399!! even if you throw in $60 more for a year of XBL its still less than a base ps3 (40gb? 80gb? who knows)..
m$ has added features and usability to the xbox 360 while sony has consistently dropped features to get the price down.. plus those silly games; yeah, we got tons of those.. if i want a bluray player ill buy a ps3 (doh!), if i want to play games - Xbox 360 for me please
Boff @ Jul 22nd 2008 9:25AM
I have to agree with FenixKnight, almost every PS3 owner I know has purchased it mainly for use as a BR player.
At the time BR hit, that was really the only decent player around. Kudos to Sony for that.
Although most of those PS3 owners already had a 360.
There's probably some irony in there somewhere.
Gemini Ace @ Jul 22nd 2008 9:49AM
Other must haves coming are Alan Wake, Halo Wars, and whatever Bungie is working on, just to name a few. And let's not forget Viva Pinata 2.
Lukin @ Jul 22nd 2008 10:23AM
Thats the reason i bought my PS3 for its media capabilities. I have had my PS3 for almost 3 months and have just now played 1 game. Hot Shots golf. Other then that my ps3 only gets its blu-ray drive used for movies.
Like mentioned above. I think once the 20gig are sold out they will drop the 60 to 299. and the elite to 399.
Vcize @ Jul 22nd 2008 10:40AM
Well, I sure do have to give credit to the Sony Marketing Force and the Sony Defense Force....they sure do know how to create buzz (well, except at E3 at least) around mediocre looking games.
I mean seriously, how are a sequel to a massively over-hyped game that failed and a sequel the very definition of a mediocre shooter considered "must have" titles? How is there any buzz around them at all.
Fable 1 and ever Banjo game ever made were far better received than the first iterations of Killzone and Resistance, yet the current-gen sequels to those games are barely even mentioned next to the sequels of a pair of mediocre shooters?
If Sony locked up the sequel to the next Area 51 game they could probably turn the marketing spin on that into a "must have" game too. Hell, they could probably do it with the sequel to Superman 64.
As an owner of all 3 consoles and a self-proclaimed shooter-lover, KZ2 and R2 are faaarrrrr down on the list of games I want in the next year.
Dick @ Jul 22nd 2008 10:41AM
Good thing you put the [sic] in there Dusty. Though your using it, of all people, is a tad ironic.
Shad0wguy @ Jul 22nd 2008 10:45AM
They can say all they want about the "Price-drop", but that $50 price cut gave me enough reason to finally buy a 360. And extra 40GB for $50 more? not a big deal to me. The only feature that I would have liked to have is the upconverting DVD player feature. Well, time to go trade in some of my Wii games.
chomskyknows @ Jul 22nd 2008 11:32AM
Mass Effect, GoW2, Halo3, Fable2, Halo Wars, a new reported Halo title from Bungie, exclusive DLC for GTA4, exclusive DLC for Fallout3, BioShock and Oblivion a year in advance of the PS3, stealing long-term exclusive franchises Resident Evil and Final Fantasy from Sony.... what's this Todd Greendick a-hole want?
Blaze463 @ Jul 22nd 2008 4:28PM
GAMES: Killzone 2, Resistance 2, LittleBigPlanet, inFAMOUS, Motorstorm 2, Folks Soul, Final Fantasy Versus XIII, God of War III, Heavy Rain, Metal Gear Solid 4, Uncharted, Heavenly Sword, White Knight Story, Valkyria Chronicles, Grand Turismo 5, Afrika, Jak and Daxter: The Lost Frontier, Rachet & Clank Future: Tools of destruction/Quest for Booty, Warhawk, WarDevil, Kingdom Hearts 3, M.A.G., The Agency, DC Universe Online, SingStar, Tekken 6, Eye of Judgement, SOCOM Confrontation, Ape Escape, Angel Rings
FEATURES: Home, Blu-Ray, wifi, hdmi, internet browser, cell processer (thing is beastly), Linux compatible, DVD upscaler, trophies, in-game XMB
PSN: FREE ONLINE, PS store (with video store), FlOw, Super Stardust: HD, Snakeball, Everyday Shooter, PixelJunk Racers/Monsters/Eden/Dungeons, Dark Mist, Echochrome, Elefunk, Fat Princess, Flower, Grand Turismo 5: Prologue, Warhawk, SOCOM: Confrontation, Loco Roco: Cocoreccho!, Tekken 5: Dark Ressurection, Pain, Siren: Blood Curse, Wipeout HD, The Last Guy. Also, tons of PS1 classics.
Yeah, you're right, man. PS3 sucks. GO XBOX!!!!1
Tblack @ Jul 22nd 2008 1:57PM
I was a die hard PS player until GTA 1V was a 360 and PS3 only title. I thought I would naturally go with a Ps3..until I did my research. Yes the 360 has had the RROD..but the Falcoln chip seems to have fixed that. You just need to know your SKU and seriel numbers to get the right one. But Sony has a lousy controller...not nearly as good exclusives...Xbox live has worked almost flawlessly as of late, and is much more expensive...I think SONY cared more about the Blu Ray player than anything and that was a mistake..there are some good articles out there about how the PS3 is not really made to play games and is a beat to develop games for.
Call of Duty 4
Bioshock
Gears of War
vs.
Metal Gear
no contest...
zero.player @ Jul 22nd 2008 3:14PM
the ps3 also has Call of Duty 4...
e.Missark @ Jul 22nd 2008 4:05PM
You mean...
Call of Duty 4
Bioshock
Gears of War
vs.
Call of Duty 4
Bioshock
Metal Gear
Right?
e.Missark @ Jul 22nd 2008 4:08PM
No, no, no. Better yet.
Call of Duty 4
Bioshock
Gears of War
vs.
Call of Duty 4 (free online play)
Bioshock w/ exclusive DLC
Metal Gear Solid 4 + MGO
Right?
Tom D. @ Jul 22nd 2008 9:50PM
e.Missark -
You do realize that Bioshock circa 2007 > Bioshock a year later (even with exclusive DLC) since the PS3 was dying for games at the time it originally came out.
e.Missark @ Jul 22nd 2008 11:24PM
Holy octagon Batman!
You're so TOTALLY right. Bioshock 2007>Bioshock 2008 w/ exclusive DLC at 1080p.
How did I ever miss such a HUGE detail. I SO take it back.
BTW, I like your spunk kid. ;/
Venas Rotas @ Jul 22nd 2008 11:55AM
I think that if Microsoft wants to stay competitive, they need to slash their xbox live prices to half of what it is now. The only problem is that more children with premature voices will have access to it after nagging their parents for it at best buy and target. I think a console price cut would be helpful as well. I think $50 off all of them would make it much more tempting. I would sell my premium version for an elite if they offered a price cut.