Analyst: Microsoft To Cut Xbox Prices To Match Sony

from the price-war dept

Tue, Jul 10th 2007 4:35pm — Joseph Weisenthal

The smoldering pile of carnage that is today's video game industry looks set to grow even larger, as analysts expect Microsoft to slash the price of the Xbox 360. Such a move would be a response to Sony's own price cuts on the PS3, which have woefully underperformed initial projections. For its part, Microsoft denies that it has plans to cut prices, but in the end, the market may force its hand. With losses continuing to mount in the Xbox division, the company can ill afford to cede any more market share. What's happening right now at Sony and Microsoft would feel very familiar to companies in cyclical, commoditized industries, like PCs or semiconductors. The fact that these companies have let themselves fall into this rut is a good sign that by focusing on computing power, graphics and price, actual innovation and creativity have fallen by the wayside.

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Filed Under: xbox
Companies: microsoft

17 Comments

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travors, 10 Jul 2007 @ 5:16pm

Wii
Surely the Wii deserves a mention and some credit for staying out of this mess?!
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- nobody, 10 Jul 2007 @ 6:34pm
  
  Re: Wii
  Yes, the all powerful, super graphics, Wii. Hmm, good concept, but the system is a failure. Where are all the games that support this that are good? And come on, a game system designed for kids releases Resident Evil as one of its best use of controls. As far as game selection, Nintendo is last. I don't see how they manage to sell anything with that poor of a selection.
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Sign Me Up, 10 Jul 2007 @ 5:47pm

Double Down
I can't wait for a price cut so I can add additional 360s to my home. I love the fact that I can watch moviews off of the 360 by itself (and of course play games), but having family movies or pictures streaming on the screens while having a party is awesome (Media Center Extender). But I'll buy another even if they don't drop for another year or so.
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Hmmm, 10 Jul 2007 @ 6:38pm

Hey Nobody... Do you HAVE a Wii? I do and my family LOVES it. It's a HUGE success and everyone that I know who owns one LOVES there's to. In fact many of my family and friends that own a Wii, never owned a PS2 or XBox. The Wii is actually broadening the console market, while the PS3 and XBox fight over people like you.
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- for gerner, 10 Jul 2007 @ 6:54pm
  
  Re: wii
  Hey Hmmm, the other guy is right. I own a Wii and have been a long time nintendo fan, but they just refuse to make good games. I've had the system since it came out and the only games I still own are Zelda and Godfather because I traded in all the other awful games i bought. Nintendo did the right thing by differentiating themselves from the 360/PS3 twins, but they're just not capitalizing on it in the game department.
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  - mkam, 12 Jul 2007 @ 5:45am
    
    Re: Re: wii
    Everyone I know with a wii plays wii sports all of the time. I ask them 'what else can we play?' and they always say there are a few or something like that. I have seen many games on the wii where the control scheme is the limiting factor (cooking mama, wii play). If the developers figure out how to make the control scheme work for games then I will buy a wii (to add to my 360). That is if I can find one.
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Jed Harris, 10 Jul 2007 @ 7:05pm

So Apple will win...
Sounds like a replay of the handset market. Everybody destroys each other in a race to the bottom, with crappy design and then Apple steps in a with a game changer (say in three or four years...

Sounds pretty bizarre, but stranger things have happened.
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Danno, 10 Jul 2007 @ 8:15pm

My sister has a Wii and she's barely touched it since she got it for Christmas. My 360 has seen ample use though. At one point, she was playing Guitar Hero so damn much that I couldn't get to play anything.
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voice of reason, 10 Jul 2007 @ 10:31pm

People talkin about the wii having games seem to forget that the 360 had the SAME problem a year or so ago. When the 360 launched the games were the same games you get on PS2 and Xbox but just prettier. It wasn't until Gears of War was released that we FINALLY saw what the 360 could do. Sony's system with all that graphics power and blu ray and George fopreman grill still doesnt have games as well, aside from games that i can get on Wii and 360. With Metroid Prime, and Condemned as well as MArio Galaxy and that NO More Heroes the systemn will have some great games soon enough
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PaulT, 11 Jul 2007 @ 12:46am

Sigh... will the Wii bashing never end?
The Wii deserves full credit for staying out of the graphics war that's causing the problems at Sony and MS by innovating new thing. It should have had some credit in the article, else the Wii is fine.

For all the Wii-bashers that turned up on this article - check out almost any other console in its 1st 6 months of release and you'll find the same problems - a couple of good 1st party launch games, no further innovation for a while. This isn't Nintendo's fault, it's just that some 3rd parties (EA, UbiSoft - who've already apologised for the crappy launch games) have concentrated on rushing PS2 ports instead of actually making Wii games.

This is changing, with Metroid Prime 3, Mario Galaxy, Smash Brothers, etc. on the horizon for Nintendo and lots of good 3rd party stuff - Nights, Geometry Wars, Beautiful Katamari, Forever Blue, Batallion Wars 2, hell even Jenga and Civilization have just been announced for the beginning of next year!

Want to play a good, innovative, fun game now? Try Elebits, Trauma Center or Mario Strikers - not PS2 or Gamecube ports, all fun and different. There's plenty of good games, just don't hate the Wii just because you bought a launch system without looking at what was there apart from Wii Sports.
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- mkam, 12 Jul 2007 @ 5:49am
  
  Re: Sigh... will the Wii bashing never end?
  I thought the control scheme on elebits was horrendous. The only reason that game is hard is because it is very difficult to point the wii-mote at small dots on the screen. I had high hopes for that game too. The controller shouldn't be the reason the game is hard, the game should be the reason the game is hard.
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Sanguine Dream, 11 Jul 2007 @ 5:17am

Yeah right...
So lets get this straight. When the opening prices were annouced for the PS3 and gamers all over this reality stated saying that the 360 would have the upper hand in the first volley of the price drop war it was nothing. But now that some analysts says it its all of a sudden news?

I hate to say it but...

Move along, nothing to see here.

And please folks don't let this turn into a my system is better than yours argument.
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Anonymous Coward, 11 Jul 2007 @ 5:28am

The fact that these companies have let themselves fall into this rut is a good sign that by focusing on computing power, graphics and price, actual innovation and creativity have fallen by the wayside.

Yes they have.

Microsoft is so busy trying to take over the home theater that games are almost a second priority. But in the way of creativity no one can deny that they took console online gaming to a whole new level.

Sony is so concerned about trying to force customers to switch to their products that the customers themselves are is not even a part of their equation to expand their bottom line (but you bet that the customer's money is though).

Say what you want about Nintendo but one thing no one can accuse them of is trying to build a superpowered monstrosity of a console that plays music, downloads movies, plays standard and high def movies, brings you your slippers when you get home from work in the evening, and plays games. Nintendo is in the business of building video game machines and that is just what they do.

Now if all these "hardcore" and "mature" gamers would come down off their high horses, get their heads out of their rearends, and realize that the entire gaming world does not revolve around them we would all be better off.
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moe, 11 Jul 2007 @ 7:06am

No innovation?
The fact that these companies have let themselves fall into this rut is a good sign that by focusing on computing power, graphics and price, actual innovation and creativity have fallen by the wayside.

Really? Networked music, photo, and video sharing through your console. Easy internet-based network play for most games. Downloadable game demos and arcade games. Downloadable video content including television and movies. Previously-announced IPTV services.

Those all sound pretty innovative to me. IMHO, it's Sony that dropped the ball on innovation. While the PS2 provided the possibility of network play, they didn't provide a decent framework. MS came through with this on the original Xbox and have made significant improvements for the 360.

It's a disservice to the readers to try to sum up the myriad of problems in the console industry by saying there isn't any innovation. Especially when it's staring you in the face.
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- Anonymous Coward, 11 Jul 2007 @ 7:17am
  
  Re: No innovation?
  I think the argument is that other than online play and downloadable demos/games there is little game related innovation from MS and Sony.
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Matt Bennett, 11 Jul 2007 @ 8:01am

The Wii is alctually pretty great at parties.
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Anonymous Coward, 11 Jul 2007 @ 10:33am

I completely agree the Wii is good for Parties. My girlfriend loves it. Simple to figure out and use. Great for the non hardcore gamer... Better games will come out. I do have to say Zelda and Red steal kept me entertained for a while.

I do envy the online play on the 360. Played online at a friends house tons of fun! I'll buy a 360 when Halo 3 hits the shelfs!

The prices for both the PS3 and the 360 are a little steep. After buying the extra controllers and games and what not; I just can�t justify spending almost a grand on another system. Especially sense the game selection still isn't where it should be. Gears of War great game Oblivion fun stuff. I haven't seen anythign timeless yet.....
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