PS3 News: Analysis: Xbox 360 Price Drop Not Hindering PS3 Sales - PS3 News

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Analysis: Xbox 360 Price Drop Not Hindering PS3 Sales

When Microsoft decided to slash prices on the Xbox 360 - standard 60GB model down to $299, 120GB HDMI-ready model down to $399, and the Arcade model down to $199 - everyone expected fairly obvious results: sales would rise while sales of competitors would take a hit. However, according to EEDAR's Jesse Divnich's recent analysis of September's NPD numbers, PS3 sales haven't been adversely affected.

As his breakdown over at Gamasutra indicates, Divnich says that in looking at the data, "a price cut from either system plays a minimal role in affecting the others' sales." For example, after the 360 price cut, sales of Microsoft's next-gen console did leap 42%, but PS3 sales remained almost perfectly steady; they actually showed a tiny increase of .1%. On that same token, when Sony dropped the price of the PS3 in July of 2007, this didn't seem to have any effect on the 360, which enjoyed a 7% rise in sales that same month. Divnich admits he's only using a relatively small sample to make his conclusions, but so far, the theory is being proven correct this generation.

"While I still maintain my original analysis that the current PlayStation 3 price point is too steep to spur sales this holiday season, it may not affect its overall potential install base in the end. In other words, those potential PlayStation 3 owners who are turned off by the current high price point may just delay their purchase until prices come down, instead of buying the cheaper Xbox 360."

In the end, we also have to add that software still drives hardware sales. Perhaps the reason sales of the 360 didn't dive when Sony cut the PS3 price last July was because the 360 still had far more games, and we didn't have many at all for the PS3 yet. And this time, when Microsoft dropped the 360 price, the PS3 had already come into its own; people still wanted it for established masterpieces like Metal Gear Solid 4: Guns of the Patriots and future exclusive gems like LittleBigPlanet and Resistance 2. Just a thought, but we think it's viable.

10/20/2008 Ben Dutka

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Comments (26 posts)

Qubex
Monday, October 20, 2008 @ 11:05:56 AM
Reply

That about sums it up Ben!

Q!

"aLL RoAds LeAd ToO hOMe"

> Home Beta Tester <

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pavlovic
Monday, October 20, 2008 @ 12:01:27 PM
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Of course software sells hardware. If I didn't have both consoles, I won't buy a 360 because of the lack of new software.

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GoldenShadow
Monday, October 20, 2008 @ 12:28:31 PM
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I believe that to some extent the price cuts due have an impact on buyers. However, more on casual gift givers than on gamers. When it comes down to it, most gamers already have a preference when it comes to systems, so even if the rival system drops in price it doesn't effect them.
On the other hand I have seen first hand the destruction of potential sales for the PS3 at gamestop. I was reserving my copy of R2 when the man in front of me chose the Xbox 360 over the PS3 due to price, he was getting it for his son for his birthday. Although the marketing of the GS employee may have had some effect on him, I think that the real reason he decided on the Xbox was price.

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Joe_III
Monday, October 20, 2008 @ 1:40:58 PM

That would probably be because an 8 year old doesn't need flashcard readers, bluray players, networked media playing, the ability to load a different OS, and all the other things the PS3 has to cause it to be double the price.

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FLYING_APE
Monday, October 20, 2008 @ 12:29:18 PM
Reply

Am i just being a fanboy when i say Halo 3 and every other xbox exclusive is overrated piece of donkey d***. Thats why i didn't buy a xbox. Ive played them all rpg, shooters etc... but LBP is something really special and it deserves higher review scores then GTA4 and any other. That why i waited for a PS3
goodbye

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Joe_III
Monday, October 20, 2008 @ 1:48:21 PM

Yeah you are.
Halo was awesome. 2 was horrible, and 3 wasn't that bad. Parts made me cry at times. But then again I've played each game at least 6 times through by now and have read every book, comic, seen every movie about Halo, so I'm a little partisan.

But if you try to tell me that Fusion Frenzy 2 and Bulletwitch aren't some of the greatest games ever made, then you obviously don't know jack about gaming -- lolz.

Seriously though, there are some great games out there for the 360 that have made it worth the 2 consoles I've had to buy. Plus getting to play some of the more anticipated games before they hit PS3 is nice, like RB2. Speaking of RB, there was a lot less problems in the way of controller compatability the first go-around with the xbox than there was with the PS3.

***NOTE*** Before the shouts of fanboy start again, I'm just replying to Ape's statement of there being no good Xbox games. There are plenty (3) of good exclusive games for the PS3 as well.

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AceTatsujin
Monday, October 20, 2008 @ 7:02:12 PM

Halo 3 = Halo 2 Upgraded. I saw the gameplay, saw how they were fighting and their new mechas .. I'm sorry. That game is not even twisting enough to grab my attention. Not worth even mentioning anymore in this time (2008 and beyond).

On the other hand, Killzone 2 vs. CoD5/6 ... That should be a very interesting view. =) As Killzone 2 will set huge grounds on the PS3.

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Joe_III
Monday, October 20, 2008 @ 7:17:19 PM

More fanboyism from Ace I see. If you had ever spent more than 5 minutes in front of any of the games, I would be very surprised.
All 3 games are completely different from each other. The most noticeable aspect you would be able to see the changes in is the Flood. The least noticeable would be weapons.

One of the reasons why I don't like the trilogy as a trilogy is because of the fact that each game plays so incredibly different from the others.

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LightShow
Monday, October 20, 2008 @ 10:12:52 PM

Halo is what we would call a "standard" FPS. It's really nothing special.

Was it pretty? Yes.
Did it play well? You Betcha.
Was it innovative? Maybe at the time, but by today's standards? not so much

It was great at the time, but it's starting to show its age. Gamers want their FPSs with a little flair. If its COD4 with it's RPG elements, or Battlefield: Bad Company with it's hilarious dialogue and addicting Online play (at least for me =D) something different is needed.

That's the main reason Halo doesn't get a lot of love these days.

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Deleted User
Monday, October 20, 2008 @ 2:11:40 PM
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but the 360 has outsold the ps3 2 months straight

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cadpig
Monday, October 20, 2008 @ 3:40:11 PM
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I bet you most of those xbox 360 sales are from Ps3 owners that were waiting for a pricedrop. So they can have both systems. Microsoft and Sony have some killer games lined up for this holiday season. Why be a fanboy when you can enjoy both systems? I have both systems. I buy most of my games for the Ps3 and my xbox 360 for their exclusives.

Halo 3 is a great shooter. So is Gears of war. So is Resistance fall of man. Man, there's plenty of great games for both systems.

Dude, everybody i know around here has both systems. Not many fanboys running around here

Last edited by cadpig on 10/20/2008 3:42:54 PM

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Arvis
Monday, October 20, 2008 @ 3:54:50 PM

That's great that you can afford it. Maybe I'll get a 360 in 2011 when my car is all paid off.

-Arvis

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Bugzbunny109
Monday, October 20, 2008 @ 5:23:55 PM

lol I did that

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LightShow
Monday, October 20, 2008 @ 10:14:06 PM

Money is the inhibiting factor for me as well.

man, i need a job...

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Orvisman
Monday, October 20, 2008 @ 4:28:42 PM
Reply

Yeah, the 360 price cut has not kept people from buying the PS3; but it has sure as hell made them buy the 360.

In the end, "While I still maintain my original analysis that the current PlayStation 3 price point is too steep to spur sales this holiday season..."

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NEWCL0UD
Monday, October 20, 2008 @ 5:03:26 PM
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the xbox may have more games but there very outdated games which is why i think the ps3 can keep selling well...

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WorldEndsWithMe
Monday, October 20, 2008 @ 5:10:34 PM
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Just as expected, people still know a good system when they see one. Most of that 42% bump for MS probably came from Gamestop hoodwinking people anyway. I'd only have a 360 if it was free, everyone i know who has one RRoD'ed on them more than once. I can't be constantly shipping big consoles all over the nation for repairs.

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LightShow
Monday, October 20, 2008 @ 5:43:47 PM
Reply

Hard to stop a Train ^_^

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orangpelupa
Monday, October 20, 2008 @ 7:08:39 PM
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@ben

all xbox 360 is HDMI ready. all xbox 360 have HDMI port. on Arcade and 60GB you only need to buy HDMI cable. just like PS3.

since falcon revision, all xbox 360 already have HDMI onboard.

thanks

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Ben Dutka PSXE [Administrator]
Monday, October 20, 2008 @ 7:56:27 PM
Reply

I'm sorry Ace, but I'm siding with Joe, here. All he did was respond to a post without any bias that I can see...but I see a little bias in your post.

And while I certainly believe the PS3 has the 360 beat hands-down in terms of current/future exclusives, the 360 does have a few worth mentioning: the recently released Fable 2 is one of them, as are all the Halos, PGR games, and of course, Gears 1 and 2. Also, we should mention that certain multiplat games in the past have been far better on the 360, like The Orange Box and Madden 08.

Last edited by Ben Dutka PSXE on 10/20/2008 7:56:53 PM

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LightShow
Monday, October 20, 2008 @ 10:01:06 PM

The only point proven by some games being better on the 360 is that Dev's are either a) Lazy or b) crunched for time/money.

not that I dispute the fact, but the heart of the issue goes beyond the console or even the manufacturer.

a small point, i realize, but it was worth mentioning ^_^

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aV muse
Wednesday, October 29, 2008 @ 5:32:07 AM

Ben Dutka PSXE [Administrator]
Monday, October 20, 2008 @ 7:56:27 PM
Reply
I'm sorry Ace, but I'm siding with Joe, here. All he did was respond to a post without any bias that I can see...but I see a little bias in your post.

And while I certainly believe the PS3 has the 360 beat hands-down in terms of current/future exclusives, the 360 does have a few worth mentioning: the recently released Fable 2 is one of them, as are all the Halos, PGR games, and of course, Gears 1 and 2. Also, we should mention that certain multiplat games in the past have been far better on the 360, like The Orange Box and Madden 08.
-------------------------------------
There are for more mentionable exclusives then that such as Mass Effect, Banjo kazooie: Nuts

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sharpiro
Tuesday, October 21, 2008 @ 12:20:21 PM
Reply

although xbox has droped there prices, it has sum side effect which may destroy ur system, in other case the ps3 has a high recomeded software, but it all depends on the one who buys the counsel. anyweys i would prefere to get a ps3

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JPBooch
Tuesday, October 21, 2008 @ 2:56:11 PM
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I think its important to note that while the PS3 has been out sold on a unit to unit basis, the PS3 has brought in more dollar for dollar. The out selling, from reports I've seen on rueters, had the xbox outselling it by about 300K to 200K. The PS3 sells for almost double on average.

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King James
Tuesday, October 21, 2008 @ 3:34:00 PM
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I agree with u Ben. The ppl I know that still don't have a next gen system, know what they want. The ppl that want a PS3 will eventually buy one. And that's it. Sum were hoping for another price cut this year, but they are still buying one.

I just feel bad for the consumers (prolly parents or grandparents) that buy the Xbox360 and don't know what they are gettin into. There are ppl out there that still think that the gaming systems are the same and buy the cheaper one outta of the three (which is the Xbox).

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aV muse
Wednesday, October 29, 2008 @ 5:25:38 AM
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I disagree with PS3 having totally won this year. I'd say it's fairly equal.

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