Sony Slashes $100 From Price of 80GB PlayStation 3
Date : 16 Jul 2008 Category : Technology
NewsFactor NetworkOn Monday, Microsoft cut the price of its Xbox 360 video-game console with a 20GB hard drive to $299 from $349 with the caveat "as supplies last," which could mean a clearance sale in advance of the August debut of its new model with a 60GB hard drive for $349.
Sony responded by slashing the price of its PlayStation 3 with a 80GB hard drive from $499 to $399. The PS3 is now right in the middle between the $449 Xbox 360 Elite with a 120GB hard drive and the $349 60GB Xbox 360.
Sales Drive Price Cuts
Certainly a downturn in sales and reported losses for both Sony and Microsoft have played into the decisions to drop prices.
But price is just one of the components to capture consumer dollars and loyalty. The top three video-game console makers -- Sony, Microsoft and Nintendo -- have different market strategies.
Nintendo has etched out a space beyond the traditional gaming base of young male players with its Wii console and innovative motion-sensitive handheld devices that couple gaming fun with exercise. Microsoft will include minimal motion sensitivity in its new Lips karaoke game under development, but is no threat to Nintendo's market space at this time.
Microsoft is carving out a niche as a gaming device and a home entertainment center with announcements of video agreements with Netflix and the British Telecommunications Group. BT Group is the largest communications provider in the United Kingdom and one of the largest communications companies in the world.
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