Okay Sony, Maybe It's Time For A $99 PlayStation 3 Offer
See Full ImageThe big news today didn't involve the PlayStation 3; it involved Microsoft's announcement of a new - and not necessarily cheaper - Xbox 360 offer.
It's reminiscent of how cell phones are sold, in that the consumer will pay $99 for the 360 console that comes with a 4GB hard drive and the motion sensing system, Kinect. But it's only a hundred bucks if customers commit to a two-year Xbox Live Gold subscription...yeah, reminds me a lot of getting my phone for free when signing up for the two-year data plan.
Now, you're really not saving much of anything; in fact, you're not really saving at all. But consumers aren't always the sharpest cutlasses on the rack; most will only see that $99 price tag and not add up the actual cost (and compare it to paying for everything separately). See, I know my "free" $600 phone would end up costing me more than that with the $30/month plan, and that's without the insurance. But hey, it works, right? I got the damn thing, didn't I? The standard rule of commercialism and capitalism is that in truth, you don't get anything for free.
So the question is whether or not Sony should follow suit. Maybe this is a better option than a price cut. A price cut might actually hurt initially, but this way, you're only sorta fibbing to the consumer in the interest of driving sales. It's a common tactic. Yes, there are early cancellation penalties in place for this $99 360/Live deal ($250 to cancel in the first three months, down to $12 in the 23rd month). And Sony could do exactly the same thing; toss in Move, require a Plus subscription, and sell the PS3 for $99.
Why not?
Tags: xbox 360, xbox 360 kinect bundle, ps3, playstation 3, sony
5/7/2012 9:12:57 PM Ben Dutka
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Comments (47 posts)
kraygen
Monday, May 07, 2012 @ 10:44:56 PM
If someone wants to feel better about their near $500 xbox purchase, or ps3 if sony follows with something similar, I guess it's their right to be blindly led around.
8 up, 0 down
Qubex
Tuesday, May 08, 2012 @ 12:47:38 AM
It's like switching Turbo on in a race car... needs that final leg up to really start moving away from the rest of the pack...
Q!
"play.experience.enjoy"
1 up, 0 down
Stabs88
Tuesday, May 08, 2012 @ 8:42:49 AM
Last edited by Stabs88 on 5/8/2012 8:43:56 AM
0 up, 0 down
jimmyhandsome
Tuesday, May 08, 2012 @ 9:03:42 AM
You're not really paying monthly for Gold as much as you are paying interest to MS for subsidizing the console to the consumer in the first place. MS may try to advertise the gold subscription as the reason why you're paying $15 a month, but it's very clear that you're more or less paying back MS for giving you a 360 and Kinect for $99.
I think you end up paying $40 or $60 more than you would had you paid for everything up front (basically you're interest expense). Is that worth it to you? Most likely not if you can afford to just buy it up front, but this form of pricing allows people who can't to get an Xbox right away. And the $15 a month is cheaper than some MMO's and Netflix subscriptions, and def. way cheaper than cell phone subscriptions.
1 up, 0 down
Highlander
Wednesday, May 09, 2012 @ 10:08:52 AM
I think Sony ought to just drop the mainline Ps3 to $199.99 and advertize is as online HD gaming at $199.99 with no strings, no commitment, and no contract. Free online gaming for all...
2 up, 0 down
firesoul453
Monday, May 07, 2012 @ 10:03:26 PM
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If Sony made a horrible deal like microsoft new $99 xbox deal, I would look down on sony.
2 up, 5 down
Beamboom
Tuesday, May 08, 2012 @ 12:16:19 AM
4 up, 0 down
Dancemachine55
Tuesday, May 08, 2012 @ 12:39:52 AM
Over half of 360 owners use it to play games online with their friends, or stream media like Netflix, so Live Gold is a must!!
If you're going to use the 360 online for at least 2 years, why not get a massive discount on the console purchase if you're already going to pay for Xbox Live?
Unless I missed the point and Live Gold will be more expensive on the $99 360 console plan...
As for marketing and the business behind it... I applaud MS for once again finding another way to draw money from poor suckers who think the 360 is the better console and the cheaper option.
6 up, 0 down
Underdog15
Tuesday, May 08, 2012 @ 10:43:33 AM
Ah, but I do consider most delayed payment deals dirty! lol :p
All those deals with no interest no payments for 1 whole year, or whatever they say... then they don't tell you... if it isn't paid off in that time, well, then you get charged interest... and interest retroactive to the date you bought it!
lol... I see youth get suckered by this all the time (And by youth, I mean age 15-29, which is the demographic my organization serves) We have a financial advisor donate time to talk about predatory money lending and "good" vs. "bad" debt to our youth every month!
1 up, 0 down
jimmyhandsome
Monday, May 07, 2012 @ 10:09:59 PM
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It's somewhat sleazy if they try to hide the 2 year contract in their marketing, but it's also a great idea to tap into a completely different market of people. Sony should absolutely follow suit. At least in N. America
5 up, 0 down
Phoenix
Monday, May 07, 2012 @ 10:35:01 PM
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As for the motion tech, I dont think many people are intrested in it at all anymore, it's a gimmick, and everyone knows it, hell Nintendo sold an entire system around it.
3 up, 7 down
WorldEndsWithMe
Monday, May 07, 2012 @ 11:28:27 PM
3 up, 1 down
Dancemachine55
Tuesday, May 08, 2012 @ 12:52:18 AM
- Cross game chat from day 1.
- No lag when streaming videos (PSN lags terribly and often the sound is out of sync with the picture, and I have 12 Mbit/sec broadband!!)
- Getting friends to join your game or joining a friend's game on Live is so much easier and smoother than PSN
Other than those 3 things, PSN is pretty much on par with Live in quality and service, but I would gladly pay the $70 per year for lag free video and cross game chat.
Charging to play online at all though is a bit rough. If MS really wanna dominate, they should allow Silver Live subscribers to play online but not communicate with other players.
And let's face it, Move (while still great tech and brilliant for core games) is no where near as desirable as the kinect with casual gamers, dancers and gym buffs. While Sorcery will be great on Move, dancing and fitness games are better suited for Kinect, no controller to hold in your sweaty hands, no sensors to strap to your body, just the camera.
While the core gamer inside me prefers Playstation for gaming, the multiplayer and party movement casual gamer in me prefers Kinect and 360. Thank GOD Sony have the best exclusives and a high quality console and blu-ray, cos MS is kicking ass with party games and online multiplayer right now.
8 up, 3 down
Clamedeus
Tuesday, May 08, 2012 @ 4:27:14 AM
No hassle on my end of getting a game together for online play, it's pretty easy. Cross-Game chat isn't a biggie for me though although it would be a cool feature to have for gaming.
3 up, 1 down
Beamboom
Tuesday, May 08, 2012 @ 6:08:52 AM
1 up, 1 down
Underdog15
Tuesday, May 08, 2012 @ 10:46:52 AM
2 up, 1 down
Deathb4Dishonor
Tuesday, May 08, 2012 @ 11:36:54 AM
1 up, 1 down
Cesar_ser_4
Monday, May 07, 2012 @ 11:30:07 PM
Reply
1 up, 1 down
jimmyhandsome
Tuesday, May 08, 2012 @ 8:15:54 AM
1 up, 0 down
DeathOfChaos
Monday, May 07, 2012 @ 11:41:32 PM
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6 up, 2 down
Dancemachine55
Tuesday, May 08, 2012 @ 12:55:21 AM
I honestly wish this had come out sooner!!
If you're not going to play online, then yeah, ripoff.
5 up, 0 down
tes37
Tuesday, May 08, 2012 @ 12:12:27 AM
Reply
3 up, 0 down
Qubex
Tuesday, May 08, 2012 @ 12:52:54 AM
Q!
"play.experience.enjoy"
1 up, 0 down
Palpatations911
Tuesday, May 08, 2012 @ 2:58:55 AM
Wireless companies and cable companies do it all the time!
2 up, 0 down
Underdog15
Tuesday, May 08, 2012 @ 10:48:08 AM
The "Other Guy" does this!
1 up, 0 down
Beamboom
Tuesday, May 08, 2012 @ 12:20:50 AM
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But more interestingly for us who already got our current gen console, is this: This MUST mean that the next Xbox is JUST around the corner. This is obviously the last market push of the x360.
So what are the chances now for both Sony and MS to reveal their next console at this years E3? As things stand now I'd say it's close to guaranteed. MS didn't even wait for E3 with this news, but roll it out *before* E3. Signs, folks. Signs.
Like it or not: The next generation consoles are coming, and they are coming fast.
Last edited by Beamboom on 5/8/2012 12:28:57 AM
2 up, 0 down
Dancemachine55
Tuesday, May 08, 2012 @ 1:02:29 AM
Sony have the best games though, so it's a wait and see situation right now.
I hope Sony have their own 3D camera similar to Kinect that works with Move but can also work without it. Playing Michael jackson on Kinect is much better than Move, all dancing and fitness games are better on Kinect (and the gym buff in me loves that!!)
But for core games like Sorcery, Tiger Woods, Tennis games, Heavy Rain, shooters, Move is by FAR the better option, but Sony really need a Kinect-like camera if they want to draw the casual fitness gamers like me and my family, and if Kinect sales are anything to go by, there are A LOT of them out there.
0 up, 0 down
Dancemachine55
Tuesday, May 08, 2012 @ 1:07:16 AM
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Or Sony should offer the same deal with a 2 year PSN subscription, but outline the free games in the deal, whereas with MS you only get online play. THAT will really persuade parents, core and casual gamers!!!
A $99 PS3 with free games every month on a PSN subscription VS $99 360 with online play and no free games on Live.
Which looks better to the consumer there? ;)
3 up, 0 down
___________
Tuesday, May 08, 2012 @ 5:01:46 AM
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have a weekly payment for a certain device you want instead of having to go and spend 400+ bucks on it!
for instance say you really want to play halo 4 but dont have a 360, well why spend the cash buying it just for 1 game when you could spend 10 bucks renting it for a week or 2 then take it back?
you can rent games, so why not the consoles they run on?
1 up, 2 down
SirLoin of Beef
Tuesday, May 08, 2012 @ 7:05:17 AM
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2 up, 0 down
Deleted User
Tuesday, May 08, 2012 @ 7:56:00 AM
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0 up, 0 down
SirLoin of Beef
Tuesday, May 08, 2012 @ 8:16:27 AM
0 up, 0 down
jimmyhandsome
Tuesday, May 08, 2012 @ 8:19:53 AM
0 up, 0 down
PS360
Tuesday, May 08, 2012 @ 10:34:06 AM
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1 up, 0 down
Excelsior1
Tuesday, May 08, 2012 @ 11:29:29 AM
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1 up, 0 down
Ben Dutka PSXE [Administrator]
Tuesday, May 08, 2012 @ 4:24:04 PM
0 up, 0 down
BikerSaint
Tuesday, May 08, 2012 @ 11:59:51 AM
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Xbox 360 at $99: "Great for Microsoft, not for consumers"
By James Brightman Mon 07 May 2012
Analysts described the pricing scheme from Microsoft as a "sucker deal"
Microsoft today unveiled a new business model for its Xbox 360 console, subsidizing the hardware at just $99 by requiring purchasers to sign a two-year contract to Xbox Live for $15 per month. The idea to subsidize a video game console is potentially good, but this initial pricing may be too blatantly a "sucker deal" for some consumers, analysts said.
"Microsoft could gain some additional market share and Xbox LIVE Gold subscribers with a deal like this, but the offer doesn't hold up for consumers who do the math," Billy Pidgeon of M2 Research told us. "At current prices the offer would save the buyer about $200 on the hardware, but XBL Gold is currently $5 per month. Increase the subscription price by $10 a month and the consumer pays for the hardware break in the first year, but is tied into the service at the same high rate for an additional year. Great for Microsoft, not so great for consumers."
Read the "full" article here:
http://www.gamesindustry.biz/articles/2012-05-07-xbox-360-at-USD99-great-for-microsoft-not-for-consumers?utm_source=newsletter&utm_medium=email&utm_campaign=us-daily
1 up, 0 down
Temjin001
Tuesday, May 08, 2012 @ 4:17:10 PM
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2 up, 0 down
FatherSun
Tuesday, May 08, 2012 @ 5:33:56 PM
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This is all about LIVE. It always has been since the first XBox. That is what locks customers in. It is an investment in time and community. Live is basically a Social Network. It has features that sites like Facebook and Google+ have implemented (Sharing, Pictures, Video Chat, Music etc..) but with a major lead in the gaming sector.
In the future companies will be giving away hardware just to get people to subscribe to their services. It is a battle for the consumers attention and wallet. I do not hate Microsoft at all for doing this. I myself won't buy into it but from a industry standpoint it is ingenious.
2 up, 0 down
PharaohJR
Tuesday, May 08, 2012 @ 7:22:03 PM
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0 up, 0 down
Dancemachine55
Tuesday, May 08, 2012 @ 8:44:11 PM
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After doing the math, in the US, you pay about $5 per month for Live Gold, and a 4GB Xbox 360 costs about $199 USD. That's $319 altogether to buy outright and subscribe to Live for 2 years.
The deal is $99 for the 360 and $15 per month for Xbox Live to pay it off. 15 x 24 = 360, add the 99 and you pay $459 all up after the 2 year contract to Live Gold.
You're paying an extra $140 for the same product over the 2 years!!!!!!
If that is the case, I'd rather save my pennies for any console and buy it outright than be suckered into a high interest payment option over 2 years.
If the extra paid wasn't THAT high, I would be far more interested in that deal. But because I'm not a dumb sheep who sees a cheap price and a cheap monthly payment option equalling to more money paid in the long run, I think I will stick to buying consoles and paying for Live as I use it.
This deal is clearly aimed at people who know nothing of financial management. Thank God I do!!
Last edited by Dancemachine55 on 5/8/2012 8:54:13 PM
1 up, 0 down
DemonNeno
Thursday, May 10, 2012 @ 2:18:53 AM
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0 up, 0 down
WorldEndsWithMe
Reply
Monday, May 07, 2012 @ 9:47:51 PM
Should Sony do it? Well I consider it sleazy as hell but as you say this is capitalism and it might help nudge the sales over the last benchmark this generation. You can fool some people all of the time, you can fool all of the people some of the time, and you can usually fool most active consumers most of the time.