When will the PS3 be $400?

If PS3 sales continue to be downright pathetic, you can expect the PS3 to be $400 around this time next year (Summer 08 ). Sony cannot afford to drop the PS3's price by $200 so soon. The Ps3 hasn't even been out for a year yet.

Expect, at most, a $100 drop this HOliday season. Also, expect MS to match any price drop.

Sony has two other sources of income (PS2, PSP) plus softwareto help bring in income to SCE while they take greater losses on the PS3, somthing MS doesn't currently have the luxury of. . Devilwillcry

Don't kid yourself. MS has plenty of finances to fall back on. Far more than Sony in fact.

I personally beleive that the PS3 will be $450 USD this Christmas. Becuase it will be closer to the 360's price but it will still be more, so MS will not be persuaded to drop their price yet. (remember MS's consumer electronics division is still in the financial red and the 360 is only started turning a profit. If they still have a price edge they are going to ride that price as long as they can.)Devilwillcry

Except they won't have the price edge necessarily. If the PS3 becomes $450, then that means it will be $30 less than the Xbox 360 Elite and only $50 more than the Xbox 360 Premium. The PS3 suddenly becomes the far better buy for a consumer still on the fence about which console to get.

Microsoft will lower the price of the 360 if this scenario occurs. They're going to want to keep the Premium $200 cheaper, at most, compared to the PS3. If the PS3 becomes $450, Microsoft will lower the Premium to $249-$299. Maybe to $279? Their main goal will probably be to keep the Elite at least $100 cheaper than the PS3, and the Premium at least $70 cheaper than the Elite. Just a guess. They really want to maintain their price advantage over the PS3.

If PS3 sales continue to be downright pathetic, you can expect the PS3 to be $400 around this time next year (Summer 08 ). Sony cannot afford to drop the PS3's price by $200 so soon. The Ps3 hasn't even been out for a year yet.

Expect, at most, a $100 drop this HOliday season. Also, expect MS to match any price drop.

[QUOTE="Devilwillcry"]Sony has two other sources of income (PS2, PSP) plus softwareto help bring in income to SCE while they take greater losses on the PS3, somthing MS doesn't currently have the luxury of. . LosDaddie

Don't kid yourself. MS has plenty of finances to fall back on. Far more than Sony in fact.

Yes, but not the consumer electronics divsion of MS...

[QUOTE="Devilwillcry"]I personally beleive that the PS3 will be $450 USD this Christmas. Becuase it will be closer to the 360's price but it will still be more, so MS will not be persuaded to drop their price yet. (remember MS's consumer electronics division is still in the financial red and the 360 is only started turning a profit. If they still have a price edge they are going to ride that price as long as they can.)thinicer

Except they won't have the price edge necessarily. If the PS3 becomes $450, then that means it will be $30 less than the Xbox 360 Elite and only $50 more than the Xbox 360 Premium. The PS3 suddenly becomes the far better buy for a consumer still on the fence about which console to get.

Microsoft will lower the price of the 360 if this scenario occurs. They're going to want to keep the Premium $200 cheaper, at most, compared to the PS3. If the PS3 becomes $450, Microsoft will lower the Premium to $249-$299. Maybe to $279? Their main goal will probably be to keep the Elite at least $100 cheaper than the PS3, and the Premium at least $70 cheaper than the Elite. Just a guess. They really want to maintain their price advantage over the PS3.

But then they blow their chance at profit! somthing that the division just can't afford. They will still have an advantage and they will use that advantage until they have gotten enough to get them out of the red.

Yes, but not the consumer electronics divsion of MS...

Devilwillcry

Well it operated at a loss last gen, and it's still alive and kicking. So yes, it does have something to fall back on.

But I don't think Microsoft is particularly proud of that. They are serious about it becoming profitable, and they will probably finally make it so this year. It's looking pretty good for them right now, except for the continued woes of the Xbox 360 hardware that has cost the company a ton of money to combat.

But the whole point of business is to not create areas that generate profit so you can fall back on them and break even, it's to be overall profitable. It's true, the PS2 and PSP are helping SCE right now, but the PS2 is finally on the wane. There are no big-time exclusive games left to come to the console. Sony is now focusing strictly on PS3 development - everybody else is focused on PS3 & Xbox 360 development.

So if Sony lowers the price of the PS3 by $150, they'll be taking an even larger loss on the console than they are now. The lower price will be matched by Microsoft & Nintendo - those consoles will also become better buys. These cuts will put pressure on the PS2 - the console won't sell as well as people will be more willing to make the plunge into next-gen.

So, if you combine a PS3 price cut that means Sony takes an even larger loss on the console, along with weaker PS2 sales, it could mean that Sony takes an overall loss.

Sony may not lower the price of the PS3 until after the holidays. They will probably keep the PS3 $599 and hope that their console exclusives move a lot of units for them. I don't know what Microsoft intends to do, but I don't think they will move on a price cut until Sony does.

But then they blow their chance at profit! somthing that the division just can't afford. They will still have an advantage and they will use that advantage until they have gotten enough to get them out of the red.

Devilwillcry

Not necessarily. I don't know how much Microsoft is making per console right now, but it could be $100. Just a guess. If the new , cheaper Xbox 360 chipset (60nm) really cuts down on manufacturing costs, and Microsoft still takes a profit on each console sold, then they'll be okay.

Halo 3 will make the company tons of money. It is going to sell millions of copies and will be a big source of revenue for them.

And besides, this generation will take at least five years to complete itself and there is a whole lot of chances for Microsoft & Sony to be profitable.

[QUOTE="Devilwillcry"]

Yes, but not the consumer electronics divsion of MS...

thinicer

Well it operated at a loss last gen, and it's still alive and kicking. So yes, it does have something to fall back on.

But I don't think Microsoft is particularly proud of that. They are serious about it becoming profitable, and they will probably finally make it so this year. It's looking pretty good for them right now, except for the continued woes of the Xbox 360 hardware that has cost the company a ton of money to combat.

But the whole point of business is to not create areas that generate profit so you can fall back on them and break even, it's to be overall profitable. It's true, the PS2 and PSP are helping SCE right now, but the PS2 is finally on the wane. There are no big-time exclusive games left to come to the console. Sony is now focusing strictly on PS3 development - everybody else is focused on PS3 & Xbox 360 development.

So if Sony lowers the price of the PS3 by $150, they'll be taking an even larger loss on the console than they are now. The lower price will be matched by Microsoft & Nintendo - those consoles will also become better buys. These cuts will put pressure on the PS2 - the console won't sell as well as people will be more willing to make the plunge into next-gen.

So, if you combine a PS3 price cut that means Sony takes an even larger loss on the console, along with weaker PS2 sales, it could mean that Sony takes an overall loss.

Sony may not lower the price of the PS3 until after the holidays. They will probably keep the PS3 $599 and hope that their console exclusives move a lot of units for them. I don't know what Microsoft intends to do, but I don't think they will move on a price cut until Sony does.

Completely agreed.

MS has far more financial resources to fall back on than Sony. It's common knowledge actually

Because that's when I might buy it, so does anyone know when it will cost $400? 2015?Kayrod29

Maybe the year 3000.

Probably as some have suggest possibly in the summer of '08. Thats being highly optimistic though. Also, MS will most certainly counter with a price drop as well.

And I don't understand how people are speculating that Sony can afford to do it, yet MS can't? You do realize MS could theoretically sell the 360 for $100 dollars and still be fine and dandy. The gaming division would lose billions, but thats just chump change to MS.

Sony confirmed a Price Drop they just dont know how much yet

So im guessing 50-100$ off after E3

CassiusGaius if MS sell 360 for $100 bye bye MS gaming divisionflashattackfina

YOu completely missed his point.

If I had to guess I would say by November 2008 / March 2009 at the latest. The 360 should be real depressing by then and most people will be selling their system off to get White Night Story , FFXIII , MGS4 , FF Versus XIII , GT5 , God of War III , SotC II , etc. j/k.