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Pachter: PS3 Price Drop May Force Microsoft To Act

Now that the PS3 Slim is a reality and the long-awaited price drop has arrived along with it, it'll be interesting to see what kind of impact this has on consumers and the market as a whole.

We heard what EEDAR's Jesse Divnich had to say on the matter, and now, it's time for Wedbush Morgan Securities analyst Michael Pachter to chime in with his thoughts. As he told IndustryGamers, the real question is whether or not we'll see a "year-over-year lift." Said Pachter:

"The real question is do we get a year-over-year lift or not? We'll clearly get a sales boost over the last few months, but the acid test is whether monthly sales go back to 200,000 plus. I think that they will, and I think that this is good for the industry. The next question is whether the sales increase from PS3 is purely additive or whether it comes at Microsoft's expense. If Microsoft sees sales go down year-over-year, they may have to cut themselves (likely by $50) before too long. I think that they stay at $299 for a while, perhaps till November, and only cut if they see Sony's sales at 2x the 360 sales level."

We think it might be the latter; video game consumers are a savvy group, as history has proven, and when a logical, rational-minded individual sets out to buy a new game console and sits down to compare the PS3 and 360, the combination of the new price, Blu-Ray, better exclusives, better reliability ratings, and free Network ought to steer them towards Sony's machine. And if that happens, that clearly indicates a lost sale for Microsoft. But we could be wrong. Who knows what might happen?

8/19/2009 Ben Dutka

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Comments (51 posts)

Gow49ers
Wednesday, August 19, 2009 @ 10:57:33 AM
Reply

The game plan has now taken effect, Sony is ready to take over the world! Now the ball is in Microsoft's court, good luck, your going to need it, 2009 and beyond is Sony's to lose....


Last edited by Gow49ers on 8/19/2009 10:59:18 AM

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Gregory Freeman
Wednesday, August 19, 2009 @ 4:23:29 PM

well, G4's ticker says that effective sept 1st. the arcade will raise to 159.99 from the 129.99 it is now... i only caught that as i dnt read much ms stuff, until i saw "360 Price raise" in the ticker...

so sony lowers, ms raises?? lol fail?

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Alienange
Wednesday, August 19, 2009 @ 6:17:00 PM

That raise in price is only in the UK... where prices have no relevance to the rest of the world... apparently.

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bridgera
Wednesday, August 19, 2009 @ 11:11:42 AM
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My problem with the 360 Elite is that it is so expensive at $399, I mean hell, I can buy a PS3 for $299 and then buy a couple of games with that $100 price difference.

... and let us not forget the cost of Xbox Live, and the batteries, what is Microsoft trying to do, break the bank?

Last edited by bridgera on 8/19/2009 11:12:54 AM

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godsman
Wednesday, August 19, 2009 @ 11:18:29 AM

The rumor is that Microsoft will drop the Pro and cut the Elite to $299 to even up with PS3 Slim. The Arcade will stay the same. This year is getting so entertaining to watch

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migabyte
Wednesday, August 19, 2009 @ 11:20:47 AM

PS3 tech is so much better, the controllers are awesome. No batteries, charge well. I could never go back to batteries.

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bridgera
Wednesday, August 19, 2009 @ 11:32:19 AM

Oh sorry, I see people aren't understanding the intent of my comment.

So online and RL I always hear Xbox 360 ppl saying how much more expensive the PS3 was. Even though I paid about the same for my PS3 that they did for their Elite, Xbox Live, Batteries, and wireless adapter, they maintained the PS3 was more expensive which actually didn't add up.

I just wanted to take the opportunity to turn it around on them lol. My comment was intended to be more of a joke, but it appears I failed in the execution, oh well lol.

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Orvisman
Wednesday, August 19, 2009 @ 12:32:04 PM

Bridgera,

I got the snark and sarcasm. Well played!

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NoSmokingBandit
Wednesday, August 19, 2009 @ 12:44:57 PM

Im with you Bridgera. The ps3 may cost more initially, but when you buy all the addons for the 360 to bring it up to par with the ps3's features you end up spending way more.

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Lenoxseer
Wednesday, August 19, 2009 @ 12:46:57 PM



Last edited by Lenoxseer on 8/19/2009 12:49:54 PM

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bamf
Wednesday, August 19, 2009 @ 5:23:30 PM

I've read this about M$ ditching the Pro and reducing the elite to $299. The elite and PS3 slim both at $299, I like to see which sells better? game on.

Pacher just guesses, anyone could have come up with what he said.

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Mr Bitey
Wednesday, August 19, 2009 @ 11:17:51 AM
Reply

I think if M$ drops the Elite down to $299, both the Slim and Elite should start to chip away at the Wii. I respect the 360, the Wii on the other hand... not so much.

The 360 and PS3 are going to end up being pretty close, whatever ends up happening. I honesty just want to start seeing the Wii end up in third. That would be the best thing for gaming as a whole.

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bridgera
Wednesday, August 19, 2009 @ 11:41:54 AM

I think alot of the initial thrill of the Wii is gone. Don't get me wrong, it's done very well for itself in appealing to wider demographics, but I think a lot of that has past. The sales on the Wii have significantly dropped, I think that'll continue through next year. Especially with the releases of NATAL and the PS3 motion controller.

I wouldn't be surprised if Nintendo ended up releasing a new console before the PS4/Xbox720 were even announced. The lifetime on the Wii just wasn't designed to last as long as the other 2 consoles.

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SvenMD
Wednesday, August 19, 2009 @ 2:53:05 PM

I do have to applaud the Wii on one aspect, and that is the fact that it brought entirely new demographics to gaming. Sure, the Wii was really a big gimmick in the fact that it did not have far superior graphics than the GC and came nowhere close to either the PS3 or 360, but it did help to show the revolution of the gaming industry. However, like we saw at E3, the PS3 is entirely capable of producing motion control, and probably doing it better, with far superior graphics. So the heyday of the Wii is in fact on the decline and the thrill went out the door on day 5 of owning one (but we all saw that one coming.) But, the Wii did get my wife into gaming, and that's a huge plus!

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Highlander
Wednesday, August 19, 2009 @ 4:03:28 PM

A 360 elite at $299 is a terrible deal compared to a PS3 at $299. The HDD is similarly sized, the PS3 plays BluRay, and has a web browser, and of course has free online game play, which will cost you $50 per year on Xbox. Not only that, but as Brigera pointed out wireless is extra for the 360. The 360 is fundamentally more expensive than the PS3 and has fewer features since you still have to go out and drop $150-$200 on a BluRay player to watch real HD movies if you buy a 360.

Of course as many know this has been the case since before the first price cut.

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JDC80
Wednesday, August 19, 2009 @ 6:03:17 PM

I've always believe once all things become equal i.e. price the PS3 should leap ahead of the 360. Other than "Gears of War" what other games on the 360 that would make you drop the PS3 for the 360?

And the news of the 360 having a over 50% failure rate doesn't help when a customer is planning to buy a new gaming console.

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Dancemachine55
Thursday, August 20, 2009 @ 1:49:31 AM

One answer...

Halo

If it weren't for that and Gears, the 360 would be dead by now, and Microsoft knows it.

Also, the reason the 360 is bigger than the PS3 is simply because one cool kid in school got a 360, so all his friends want one too so they can play each other on Halo. This exact reason is why many of my friends have 360's instead of PS3s.

It is a very sad truth. People buy Halo and a 360 simply because their friends have one, not because its the better machine.

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dfoz3
Thursday, August 20, 2009 @ 10:01:25 PM

Xbox live may not be free but anybody who thinks PSN is on equal footing is fooling themselves. The social aspect of xbox live blows PSN out of the water.

For pure entertainment the ps3 wins out due to Blu-Ray, but for social gaming and just keeping in touch with fellow gamers xbox live wins. I think overall they are about equal systems. I get my multiplayer games on 360 and my single player games on ps3.

The whole wireless argument is funny to me too. I have both of mine hard-wired as wireless is just much slower and less reliable(at least in my opinion).

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Robochic
Wednesday, August 19, 2009 @ 11:33:41 AM
Reply

Sony will Win the Console wars never doubted it one bit.

Even if the Pro is the same price as the PS3 slim, you still get more for that price from the PS3, always have it's now even cheaper for all to enjoy.

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mexgeo86
Wednesday, August 19, 2009 @ 12:08:29 PM
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Tretton best said it at E3: "It's all about the software." M$ can try to cut their systems' prices all they want, but what good is a system if there's not good games (looking ahead) for it?

They'd have to make a substantial price cut but even then, current ps3 prices are more than a bargain.

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Lenoxseer
Wednesday, August 19, 2009 @ 12:52:46 PM

I totally agree with you. Microsoft and Bungie have both admitted they are expecting low sales on the new Halo: ODST. So when they start expecting low sales on their "big" exclusives, you know they aren't doing something right.

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BeezleDrop
Wednesday, August 19, 2009 @ 12:09:48 PM
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Even buying everything you need for the 360 made it 399.99 it wasn't even a better deal, the only difference between both consoles was the Xbox would malfunction and you have to pay for online gaming after spending $100 on a wireless adapter, and another $100 on a hard drive, which is just ridiculous. The Wii did tremendous because it appealed to all ages, kids, families, and yes the elderly.

Playstation doesn't have to worry about playing "catch up" everyone should know by now the PS3 is a steal at a great price, and a lot of the games appeal to everyone. I just wonder what M$ will do to try and match this amazing deal Sony has brought out.

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SnipeySnake
Wednesday, August 19, 2009 @ 12:29:58 PM
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Just wondering, does anyone work at gamestop or somewhere that sells ps3s? If you do can you tell me if there were people coming to buy ps3s?

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SnipeySnake
Wednesday, August 19, 2009 @ 12:33:51 PM
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All 360 fanboys can come up with is "live is better". The ones that don't research say "live is better","the price is still too high"(they say it even when it got the price drop), "the ps3 has no games".

Last edited by SnipeySnake on 8/19/2009 12:34:41 PM

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Jawknee
Wednesday, August 19, 2009 @ 1:28:52 PM

The ones who never played or owned a PS3 will say "live is better". An Xbot friend of mine tried to convince me that Prototype was better then inFAMOUS. when I asked if he ever played inFAMOUS of course his answer was no. Loser.

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Lenoxseer
Wednesday, August 19, 2009 @ 12:50:03 PM
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There is still a major down side to purchasing the Elite. Microsoft is dropping the Pro (bad mistake on their part, the pro is what sells) and dropping the price of the Elite down to $299.99, but the Elite doesn't have the games bundled with it and they took out the HDMI cord. I don't know, but with that and the fact that the 360 has a 54% failure rate (not to mention all the stuff you have to pay for when it comes with or is free for the PS3), I don't think Microsoft is going to be able to keep up now that Sony has landed this god punch to the face.

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WorldEndsWithMe
Wednesday, August 19, 2009 @ 1:00:57 PM
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The final nail in the coffin is in place.

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Qwarktast1c
Wednesday, August 19, 2009 @ 2:21:40 PM

here lies the Xbox 360

2005-2009

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Bugzbunny109
Wednesday, August 19, 2009 @ 3:08:28 PM

He was a good system. I will miss him dearly. I remember all the good times we had. One day he called out to me flashing 3 red lights. Oh the good times..... :P LOL

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Wazomba
Wednesday, August 19, 2009 @ 1:01:05 PM
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And, in other gaming news , not concerning sony an there excellent news about the Ps3 slim being revealed, Fable III was revealed today for microsofts xbox 360.

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Jawknee
Wednesday, August 19, 2009 @ 1:21:03 PM

Fable sucks.

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WorldEndsWithMe
Wednesday, August 19, 2009 @ 2:33:24 PM

I don't understand why they can't seem to make Fable into the game they keep trying to make it. All the neat stuff they say will be in it never comes true.

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Alienange
Wednesday, August 19, 2009 @ 6:22:23 PM

Fable III ? I thought that was Fable II part 2.

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Acehiroku
Wednesday, August 19, 2009 @ 1:05:30 PM
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MS hasn't done anything big since this year's E3. Even their conference in Gamescom is very weak, the price drop for 360 Elite still hasn't been officially confirmed as well. The way things are going, one could only think that the momentum is definitely much better on Sony's side. I really wish PS3 will outsell 360 as soon as possible, perhaps by the end of 2010 or early 2011 ? So that all this console wars concept can be put to rest and finally we can get back to gaming news, just like we did in PS2 era. Playstation was, is and will always be the king of hardcore gaming.
PS3 FTW !

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Highlander
Wednesday, August 19, 2009 @ 4:07:51 PM

Don't forget that their event of the year is Halo ODST....ROTFLMAO!

The most shockingly funny moment yesterday was on G4. Adam Sessler showed up on Attack of the Show and basically blew off the announcement of the PS3 Slim at $229 like it was inconsequential, and immediately tried to talk up a game - an Xbox360 game of course - as if the PS3 announcement literally was irrelevant.

Any shred of credibility that G4 and Sessler had was torn away in a moment. I laughed myself silly.

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Highlander
Wednesday, August 19, 2009 @ 5:06:08 PM

Argh! just spotted a terrible typing error. the price of the PS3 slim should of course be $299, not $229. Sorry for the error.

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Arvis
Thursday, August 20, 2009 @ 3:40:24 PM

I thought it was common knowledge that G4 has been getting paid for their content coverage for some time now... Microsoft plays ball, Sony usually doesn't.

-Arvis

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Jawknee
Wednesday, August 19, 2009 @ 1:15:59 PM
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MS could drop the price to 50 bucks and it still wouldn't be worth it. Rather spend it on another great PS3 exclusive.

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Wazomba
Wednesday, August 19, 2009 @ 2:18:32 PM
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Im with you on that 100% JAWKNEE, i had Fable II for about 2 months, then traded it in for Valkyria Chronicles, just something about the Fable games i don't like.

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Jawknee
Wednesday, August 19, 2009 @ 2:47:26 PM

Picking up whenches on the street and contracting STD's didn't make the game any better either. Can't get any lamer then that.

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WorldEndsWithMe
Wednesday, August 19, 2009 @ 2:31:20 PM
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lol, so this is the analyst guy? He doesn't look to sure of himself in that pic.

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Highlander
Wednesday, August 19, 2009 @ 4:05:26 PM

This is the famed Pachter, a man paid to read the PS3 blogs and regurgitate our posts is a way that sounds plausible. Good god I wish I had that job! LOL!

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Tribble
Wednesday, August 19, 2009 @ 3:16:08 PM
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Not sure the UK will see a major uplift in sales. The price is still pretty high (£250). The Xbot Elite is currently £220, rumoured to be dropping to around £180. Sony need to throw in a Game or Blu-Ray to sweeten the deal. Shame about B/C too.

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Imagi
Thursday, August 20, 2009 @ 12:18:57 PM

Which idoit's marked that comment down? the slim is gonna be on sale in the UK for only £25 GBP less than the current fat model, that equates to a PS3 slim costing $410 USD. The 360 is still a far cheaper option.

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tes37
Wednesday, August 19, 2009 @ 4:31:32 PM
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The next move from Microsoft should be the incineration of the remaining stock of 360's to make more room for the ps3 on store shelves.

Last edited by tes37 on 8/19/2009 4:32:15 PM

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Fane1024
Thursday, August 20, 2009 @ 2:49:28 AM

Or, they could just plug them into wall sockets and they would incinerate themselves.

I'm here all week; tip your waitresses.

Last edited by Fane1024 on 8/20/2009 2:51:03 AM

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Alienange
Wednesday, August 19, 2009 @ 6:25:54 PM
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Well here's what Pachter had to say. Brace yourselves now, Kotick is next.

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Highlander
Thursday, August 20, 2009 @ 1:35:38 AM

We should sell tickets and popcorn.

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FlyingKickPunch
Wednesday, August 19, 2009 @ 7:49:43 PM
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xbox 360 sucks and is a joke of a game console. its way too expensive, and it has no games! (anymore) lol
choke on it xbots!
and whoever downvoted jawknee for saying fable sucks is mistaken. fable does, in fact, suck. (except for the dog. he was a good boy)

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___________
Thursday, August 20, 2009 @ 4:26:04 AM
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ladies and gentelman i give you the definition of a fanboy.
enjoy.

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Rekano
Saturday, August 22, 2009 @ 2:07:01 PM
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As someone who owns a 360, if Microsoft wants to "act" they need the fix their damn machine. Even with those new chips in them, they still produce RRoD. I know this cause, owning my 4th system that HAS this chip in it, did it 2 days ago.

Looking very forward to getting a PS3Slim when they drop.

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