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EEDAR Weighs In On PS3 Price Drop

So now that the PS3 Slim and long-awaited price cut has been confirmed, we figured the analysts would weigh in with their thoughts.

The first to do so is Jesse Divnich at Electronic Entertainment Design and Research (EEDAR), and he says this new price point "finally makes the Sony console a much more competitive product," although he doesn't believe this will necessarily cause a sudden hardware shift in favor of the PS3. He does, however, see the PS3 competing far more favorably with the Xbox 360 now, and it can even compete with the Wii (priced at $249), as some consumers may have to make a tough decision between outdated hardware and a console that continues to be on the rise and features a built-in Blu-Ray player. EEDAR does expect Microsoft to announce the elimination of the Xbox 360 Pro SKU and the drop of the Elite SKU down to $299. However, Divnich sees this particular price drop as follows:

"However, we just consider this a pseudo price drop. It is no different from Lexus introducing their 2010 models at the 2009 prices and clearing out their 2009 inventories. Sure, there is a better value, in comparison to the 2009 models, but a consumer still needs to be in the market for a luxury car to reap the benefits. A consumer shopping for an entry-level sedan will not suddenly upgrade to a Lexus just because the 2010 models have been released. EEDAR does expect the Xbox 360 to get a small boost in sales in the short-term, but considers any Xbox 360 sales lift to be a positive byproduct from additional marketing and retail circular placements."

EEDAR does not believe these price cuts, as welcome as they are, will significantly increase software sales through the holiday season. "Even if the price cuts from both systems increase hardware sales by over 1 million units through the next six months, that would likely add an additional $200 million to the software bucket and would only increase 2009 sales by about 2% over current trend..." As for "who will win the holiday season," Divnich says it comes down to hardware vs. software, and there's no telling who will emerge victorious right now. And finally, he believes the $299 price point "will likely become the new standard for the next-generation consoles for the next year." Let the new battle begin!

8/18/2009 Ben Dutka

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Comments (45 posts)

Button Masher
Tuesday, August 18, 2009 @ 1:37:01 PM
Reply

Not surpirsed by this analysis. However...gamers NEVER buy anything based on what an analyst says.

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Ben Dutka PSXE [Administrator]
Tuesday, August 18, 2009 @ 1:39:12 PM

I don't think any analyst expects gamers to purchase things based on what they say.

Reviewers, on the other hand... ;)

Agree with this comment 9 up, 1 down Disagree with this comment

Wage SLAVES
Tuesday, August 18, 2009 @ 5:23:17 PM

@Ben

So true. If they aren't rabid fanboys, gamers tend to be the smartest and knowledgeable consumers for a particular market. Somehow that statement explains a lot about the Wii and who buys them.

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inkme101
Tuesday, August 18, 2009 @ 1:49:21 PM
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right on ben well said

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Cavan
Tuesday, August 18, 2009 @ 1:50:01 PM
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i wander how much it will be in the uk....

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Xra897
Tuesday, August 18, 2009 @ 1:53:26 PM

299 euros

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BlinkBoy
Tuesday, August 18, 2009 @ 1:57:56 PM

Maybe £249 how much is it now, in GBP?

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inkme101
Tuesday, August 18, 2009 @ 1:50:12 PM
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are there any pics available from the press conference today of the new slim console? if so then where?

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Mamills
Tuesday, August 18, 2009 @ 1:57:01 PM

http://www.joystiq.com/2009/08/18/sony-announces-new-slimmer-ps3-coming-first-week-of-sept/


there are the Pics

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Ben Dutka PSXE [Administrator]
Tuesday, August 18, 2009 @ 2:17:54 PM

We just added a Slim pic to the other story.

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LunaticFringe
Tuesday, August 18, 2009 @ 4:12:32 PM

theres a ps3 slim video on the playstation blog

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ace_boon_coon
Tuesday, August 18, 2009 @ 1:50:49 PM
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i bet M$ is pissing in their pants lol lol lol. they think the drop in the elite will excite people? lol lol lol.

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Bugzbunny109
Tuesday, August 18, 2009 @ 1:55:01 PM

Uhhh yes it would, actually.

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ace_boon_coon
Tuesday, August 18, 2009 @ 2:00:18 PM

^^^^^^^^^^^^^^^^^^^^


uhhhhhh yeah right. don't hold your breath

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archs13
Tuesday, August 18, 2009 @ 3:56:07 PM

lol... how would dropping the price of elite excite me when there's already other skus that cost less.

ill never buy one anyway price drop or not :D

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BlinkBoy
Tuesday, August 18, 2009 @ 1:56:57 PM
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So people who buy a PS3 slim or normal version now will not buy a lot of games to play on it?

It doesn't make sense, maybe not shockwaves in software sales but it will rise since more will buy one now or get one for christmas with software to go along.

little off topic: They mentioned if you buy the PSP Go between 1st October and 10th October and register it online, you would get Gran Turismo PSP (in digital format) for free. Can you check that one out if I got it right?

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Gregory Freeman
Tuesday, August 18, 2009 @ 11:31:19 PM

lol wats funny is that the EEDAR think that this price cut will cause ps3 sale increases all around the board... so... those idiot doomsayers (all the millions of them,) who not only begged but demanded a price drop won't pick one up???

"Thnx sony for the price drop, have a great one!"

doubt it...

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Gregory Freeman
Wednesday, August 19, 2009 @ 3:33:02 AM

***WILL NOT CAUSE PS3 SALES INCREASES****

srry 4 the error
Last edited by Gregory Freeman on 8/19/2009 3:33:25 AM

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Cavan
Tuesday, August 18, 2009 @ 2:02:39 PM
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its currently 299 english pounds, so am hoping it will be more than just a 50 pound reduction.

@xra897 - in the uk we dont use euro's we use pounds sterling

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Cavan
Tuesday, August 18, 2009 @ 2:05:14 PM
Reply

blinkboy

that is correct about gran turismo psp however it is only for ppl in europe.

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BlinkBoy
Tuesday, August 18, 2009 @ 2:15:44 PM

I am in Norway, which is located northen parts of Europe. This deal kind of changed the idea on getting PSP Go or not. I am more for it now.

Sorry for "driving" off topic here.

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CrazyIrishBoy
Tuesday, August 18, 2009 @ 3:29:40 PM

@blinkboy

Completely off topic, but the women in norway are great ;)

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Button Masher
Tuesday, August 18, 2009 @ 2:07:09 PM
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This will essentially get people who already have a 360 off the fence and entice them to finally get the PS3. Especially with all those great exclusives right around the corner.

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Day_v
Tuesday, August 18, 2009 @ 2:10:07 PM
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What is this guy smoking? Of course it will cause a sudden increase in hardware sales that will surpass the 360. And of course software sales will increase(2% is still alot) as a result. Paid to think with their ass these guys.

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Titch1794
Tuesday, August 18, 2009 @ 2:12:30 PM
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Please correct me if I'm wrong but I have'nt seen any news on b/c.

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DGo8
Tuesday, August 18, 2009 @ 2:15:56 PM
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because there isnt any

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inkme101
Tuesday, August 18, 2009 @ 2:17:18 PM
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that's what i was hoping to hear about. bring on the BC!

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Ben Dutka PSXE [Administrator]
Tuesday, August 18, 2009 @ 2:18:13 PM
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And no b/c news, guys. Sorry.

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Cavan
Tuesday, August 18, 2009 @ 2:18:17 PM
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there was no mention of bc in the new 3.0 firmware, meaning that it most likely isnt coming any time this year.

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vicious54
Tuesday, August 18, 2009 @ 2:22:44 PM
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I looked at the pics on joystiq and it really isn't that bad looking. I have a 60gb launch PS3 but I could see myself purchasing another one in the future.

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BigBoss4ever
Tuesday, August 18, 2009 @ 2:23:39 PM
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with the PS3 slim with 299 price and the line ups for the ps3 big titles, i dont see how 360 can compete in the combination of these situations.

As for wii, it does not even come close to the quality of the games and the machines sony delivers; honestly, i never seriously glaced at Wii since its release
Last edited by BigBoss4ever on 8/18/2009 2:25:29 PM

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Day_v
Tuesday, August 18, 2009 @ 2:27:11 PM
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Now that the price drop has occured,lets just reflect how wrong analysts can be. Some said it would come with kz2, some begining of spring, around may, patcher i think. Others said after E3. Some said it would come with uncharted 2. They were all wrong, why do we listen to these ppl again?

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Day_v
Tuesday, August 18, 2009 @ 2:27:25 PM
Reply

Now that the price drop has occured,lets just reflect how wrong analysts can be. Some said it would come with kz2, some begining of spring, around may, patcher i think. Others said after E3. Some said it would come with uncharted 2. They were all wrong, why do we listen to these ppl again?

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Day_v
Tuesday, August 18, 2009 @ 2:27:45 PM
Reply

Now that the price drop has occured,lets just reflect how wrong analysts can be. Some said it would come with kz2, some begining of spring, around may, patcher i think. Others said after E3. Some said it would come with uncharted 2. They were all wrong, why do we listen to these ppl again?

Agree with this comment 0 up, 1 down Disagree with this comment

Day_v
Tuesday, August 18, 2009 @ 2:27:57 PM
Reply

Now that the price drop has occured,lets just reflect how wrong analysts can be. Some said it would come with kz2, some begining of spring, around may, patcher i think. Others said after E3. Some said it would come with uncharted 2. They were all wrong, why do we listen to these ppl again?

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WorldEndsWithMe
Tuesday, August 18, 2009 @ 4:03:38 PM

uh, 1 more time?

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NiteKrawler
Tuesday, August 18, 2009 @ 8:07:21 PM

Lmao.

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Banky A
Wednesday, August 19, 2009 @ 12:00:34 AM

Opps I did it again (quad)

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LinTr
Tuesday, August 18, 2009 @ 2:31:23 PM
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This is a step in the right direction, FINally. Backwards Comp has been a recurring problem. Now I want to see an influx of worthy games and another price drop. Here's hoping they give the slim the royal treatment and we don't get a later/better version that should have be released.

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Oxvial
Tuesday, August 18, 2009 @ 2:34:27 PM
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We nos have the drop the first argument to not buy a Ps3 is dead!.

now we have only 2 left BC and Cross Chat..come on sony just do it!

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Cavan
Tuesday, August 18, 2009 @ 2:51:31 PM
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bc isnt a problem for everyone, many ppl have the original ( like me ), the only thing the xbox can do that the ps cant is cross voice chat and custom soundtracks on which sony has left to the devs to do, however very few devs seem to do this.

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Cavan
Tuesday, August 18, 2009 @ 2:51:37 PM
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bc isnt a problem for everyone, many ppl have the original ( like me ), the only thing the xbox can do that the ps cant is cross voice chat and custom soundtracks on which sony has left to the devs to do, however very few devs seem to do this.

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el guapo
Tuesday, August 18, 2009 @ 4:25:16 PM
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you cant see me doing it, but i'm doin mah happy dance, cuz now i got a good reason to purchase a ps3!!!! woo hoo!!!

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el guapo
Tuesday, August 18, 2009 @ 4:26:21 PM
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HAPPY DANCE!!!! HAPPY DANCE!!! finnally an excuse to get me a ps-triple!!!!

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Ricochet
Tuesday, August 18, 2009 @ 8:24:02 PM
Reply

This proves that there is huge PS3 hate around the world. PS3 needs to cut price, PS3 won't have advanatage cutting price, etc etc.

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