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EEDAR's Divnich Weighs in on the PS3 Price Drop

by Chris Kerr, posted on 16 August 2011 / 2,172 Views

Recently Sony announced that the PS3 will be dropped in price from $299 to $249. Evidently this is a tactic used when a company wants to sell more units. In this case it’s a tactic that will undoubtedly work as many people wouldn’t mind getting themselves a PS3 for a cheaper price – myself included.

Jesse Divnich, VP of EEDAR – Electronic Entertainment Design and Research – has shared his thoughts on the price drop, what this means for Sony and in effect Microsoft:

We are pleased to see the PlayStation 3 increase its value to consumers by reducing the price of the PlayStation 3 hardware from $299 to $249 (with comparable reductions in other regions).  It is no secret that the PlayStation 3 has been struggling for some time against the Microsoft Xbox 360 in North America (but slightly outperforming in Europe) and this price reduction will undeniably increase hardware and software sales of the PlayStation 3 in all regions, both in the short and long-term.

It is difficult to predict, at this time, whether the Microsoft Xbox 360 will follow suit, we do not believe that Microsoft will immediately react.  Microsoft will likely wait to see the commercial impact of the price disparity between itself and the PlayStation 3 before reacting with its own strategy, which may include a potential price drop.

EEDAR had projected that HD gaming will grow 10 to 15% this holiday season, with news of the price cut; we now anticipate HD sales to grow 14 to 19%, internationally.

Some very interesting comments there. Will Microsoft be responding to this with a 360 price drop? Well, maybe it would make sense, especially if they want to keep dominating the market in North America. Let’s not forget, the more 360s that are sold, the more potential Kinect customers they have.

What are your thoughts on the price drop, and the market as a whole? Will any of you be purchasing a PS3 now? Do you think Sony can dominate sales now? Let us know.


16 Comments

kayoss
kayoss (on 16 August 2011)

A Price drop is always a good thing. Xbox will undoubtly drop the price on their consoles, I'm pretty sure by $50 dollars. But $249 for a gaming machine and blu-ray player. Thats a price you can not beat. I think I might get a third one.

  • +7
DonFerrari
DonFerrari (on 17 August 2011)

You can silver tape a Bluray player (maybe not from Sony because you know they su**s) with a Xbox 360 for the same price and have a better bang for your buck since when you get a RROD you still can watch Bluray / sarcasm

  • 0
ultraslick
ultraslick (on 16 August 2011)

it says if Microsoft wants to keep dominating the market! Dominating the Market!! Aghhhhhhhhhhhhhhhhhhhh!!! too much inaccuracy.!

  • +4
RenderMonk
RenderMonk (on 17 August 2011)

@ultraslick I love how you leave off the end of the articles quote.....it SAYS "if they want to keep dominating the market in NORTH AMERICA". I'm a PS3 fanboy through and through, but Xbox is outselling the PS3 in North America and everyone knows that. It's a shame, but it's true. So stop taking half quotes and twisting facts and then getting 6 people to Thumbs UP you! SHIT

  • +3
hyperhealer3
hyperhealer3 (on 16 August 2011)

Buying a second PS3 before the year's out. This and cloud saves are the clincher for me.

  • +3
ROBOTECHHEAVEN
ROBOTECHHEAVEN (on 16 August 2011)

ppl , the article clearly says dominating in north america, which is fact. so there isnt a inaccuracy error at all. i think the 360 will have to match the price in sept or exceed it to keep the ps3 from closing the gap in sales too quickly.

  • +3
MARCUSDJACKSON
MARCUSDJACKSON (on 16 August 2011)

i don't think a MS price drop would do any good! sells may spike slightly but thats it, and it won't last long. the only way i see a 360 price cut significantly impacting 360 would be the elite version being sold for $199.99.

  • +3
MARCUSDJACKSON
MARCUSDJACKSON (on 16 August 2011)

i also don't think its needed. they maybe able to compete without one.

  • 0
dirkd2323
dirkd2323 (on 17 August 2011)

depends on how you look at sales, I look at the whole picture , World Wide sales, in this case Sony has Dominated for over a year now, If you are only looking US, then PS3 usually comes in 2nd, the price drop should def make a difference.

  • +1
Germaximus
Germaximus (on 17 August 2011)

I'm finally gonna be buying a ps3.

  • +1
usrevenge
usrevenge (on 17 August 2011)

already have a ps3, it should have been $250 a long time ago i mean, it doesnt even come with a game....

  • +1
binary solo
binary solo (on 17 August 2011)

North America really is the only serious driver for a PS3 price cut at this point I suppose. PS3 is selling fine everywhere else. I don't expect PS3 to outsell 360 in North America even with this new price differential. But the gap will be significantly reduced, making the WW sales difference even more. I don;t think MS will leave the 360 at its current price through the holidays. But I agree they would be sensible to wait and see what pattern emerges in North America.

  • +1
demonfox13
demonfox13 (on 16 August 2011)

Wow rofl, please author show more bias will ya? Lol, "especially if they want to keep dominating the market." Seriously when was the 360 "dominating" the market? Week after week PS3 has been usually above by about 20k + units WW and in many cases even the Wii has been above the 360. 360 no longer has the value nor bang for the buck it once had (well if ever really).

  • +1
zuvuyeay
zuvuyeay (on 17 August 2011)

i always forget how much the 360 is in the us,is $249 or $299 for elite and $199 for the arcade is that right or do they even have an arcade anymore,surely MS will undercut sony pretty fast by the necessary amount,whatever that is

  • 0
welshbloke
welshbloke (on 17 August 2011)

The focus I suspect for Microsoft will be to make the Kinect bundles more appealling so they may receive the greatest comparative price cut but prices cut will come and soon for all SKU.

  • 0
theprof00
theprof00 (on 17 August 2011)

price drops has never been to sell more units, it's just that in some cases it results in doing just that.

  • 0
Sevengen
Sevengen (on 17 August 2011)

what?.... I mean to say... what?
I don't know how old you are, but gauging from your post and screen name you're probably a youngin, so I feel it's my duty to correct you and re-position your stance so you're facing forward on the road of common sense.
The only reason companies cut their product's price, whether it's consoles, cars or make-up, is to sell more units. That is the only, only reason.

  • 0
DonFerrari
DonFerrari (on 17 August 2011)

Sevengen you are completly wrong... it's obviously a wait to be less diabolic having less profit per unit. Or maybe a deal to steal your soul. Be aware.

  • 0
SONYisBP
SONYisBP (on 16 August 2011)

IDC. I already own them all. Nothing in it for me. Next gen pls.

  • -1
fajiaas
fajiaas (on 17 August 2011)

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  • -3