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PS4 Isn't In A Position To Dominate The Market At $400

As most of you know by now, instead of raising the default price of the Xbox One back to $400, Microsoft has opted to keep the price tag at $350.

It's not really a surprise, especially after it was confirmed that Xbox One won both November and December in the U.S. Most gamers have been calling for Microsoft to make this move and now that it's done, what should Sony do? In all honesty, I'm not sure they have a choice. If the price stays at $400, you have to convince consumers that they're getting a much better deal for an extra $50.

Right now, that would be difficult to do. The holiday unpleasantness concerning the PlayStation Network certainly didn't help matters, and let's not forget that PS4 didn't exactly come hard with the exclusives in 2014. We're still waiting on them and while I'm convinced they will outshine whatever Xbox One has planned, it's hard to sell a system on future promises. Besides, everybody knows that in the world of consumerism, there's a very big difference between a $349 and $399 price tag in the eyes of shoppers.

If the timing were any different, I'd advise Sony to stick. But in this particular case, as I said above, I don't think they have any choice in the matter.

Tags: ps4 price, playstation 4 price, ps4 price cut

1/15/2015 9:52:16 PM Ben Dutka

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Legacy Comment System (30 posts)


Corvo
Thursday, January 15, 2015 @ 10:10:38 PM
Reply

I continue to care less and less. As they remain to have a 2:1 ratio with xbox I seriously think MS could use a year to catch up. So, what I think... Don't care. Got too many good PS4 exclusives and non exclusives to care about console rivalries.

I have been seeing more and more of "PS4 XBONE and PC VS WII U" lately which is hilariously one sided but fun to read nontheless.

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maxpontiac
Friday, January 16, 2015 @ 11:29:08 AM

Now while I see your point, it might benefit you if you just avoided these types of threads.

There are people here that like to discuss this topic.

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SaiyanSenpai
Friday, January 16, 2015 @ 12:03:08 AM
Reply

A big, bulky, less powerful, console with an external power brick and no ability to upgrade the HDD should not cost the same as the slimmer, sleeker, more powerful, HDD upgradeable counterpart.

A lesser product should cost less. I'd say they're on equal footing now.

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Temjin001
Friday, January 16, 2015 @ 11:50:50 AM

Again with the external brick stuff 😜

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SaiyanSenpai
Friday, January 16, 2015 @ 12:30:33 PM

yeah, I know. I dislike external power bricks with a passion and wish products would just do away with that practice altogether. Cable management is so much easier and cleaner without them.

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xnonsuchx
Friday, January 16, 2015 @ 2:03:41 AM
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I wouldn't do it too quickly, otherwise it could make a lot of people think they got ripped off by Sony over the holidays.

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Ather
Friday, January 16, 2015 @ 2:41:47 AM
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Considering how many people recommended PS4 last year because it was $100 cheaper, I'm surprised Sony thinks being $50 more will work in their favor. Then again, people opted for VHS for Beta despite being more money and had less storage space. Look at what Microsoft's done? Dropped Kinect. Lowered their price by $150. sure seems like they're trying to get more buyers. Is it necessarily a good system that needs such cuts to get buyers?

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Kryten1029a
Friday, January 16, 2015 @ 5:26:25 AM
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It might not be such a good move to drop the price this early in the console's lifecycle when they're still selling at a loss. PS4 still has the edge outside of North America and even here, it's not at a bad disadvantage. If they devote some money to marketing (which they haven't done as aggressively as Microsoft) and touting upcoming exclusives like Grim Fandango, Uncharted and The Order then they can hold off on a price cut until component costs drop. People want to play on the system that their friends have and Sony still has the advantage there.

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Shauneepeak
Friday, January 16, 2015 @ 12:43:01 PM

Actually PS4 has been selling for a Profit since day one. I forgot the exact number but Michael Pachter went over both consoles one day and when it first launched Sony was making something like $30-40 per console sold in the US.

Last edited by Shauneepeak on 1/16/2015 12:43:20 PM

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Kryten1029a
Friday, January 16, 2015 @ 6:31:02 PM

You're right. I'd even commented here on the fact that they were either profitable or posting a narrow loss. Still, I don't see a price drop as a do-or-die proposition. Microsoft needed that price cut to pull out of a nosedive but the PS4 is still benefiting from the positive word-of-mouth it had at launch. If it can be done at a break-even price then there'd be no harm in trying, but only if they can do it without losing money.

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DemonNeno
Friday, January 16, 2015 @ 6:59:54 AM
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I've been saying this all along. MS wouldn't raise the price. December's numbers are still unique because many outlets offered $50 rebates/gift cards for the xb1,rendering it $300... With a game...

Again, I stand to question what the hell MS is going for here. Sony shouldn't back down the price until at least a year. Yeah, it'll bring on more sales. No, it doesn't need it to be competitive. Adding a game go their bundle would be a great idea, though. Bring on more value and if they're clever enough to include a game with multi-player, it'll mean more of the buyers will opt for PS+.

Solid idea, IMO.

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WorldEndsWithMe
Friday, January 16, 2015 @ 9:10:48 AM

Letting MS do this another year while standing tall would also let MS dig themselves into a deeper financial hole for one thing.

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DemonNeno
Friday, January 16, 2015 @ 10:08:13 AM

Exactly.

My best case scenario would be to help Evolution launch the PS+ version of Driveclub and bundle the full version with new consoles. Driveclub has the content needed for gamers to feel inclined to subscribe into PS+. It's 1st party graphics and it's price isn't much to compensate, yet the content keeps rolling out. DC isn't an intense sim game, so plenty of people will feel comfortable toying with it.

MS allegedly said this price cut is temporary. I'm betting they're hoping the Win10 announcement will pique interest enough to offset the price at 400.

They're wrong,if that's the case. There's no way a lower level API will make the XB1 compensate for inferior hardware, especially since most of DX12 rolled out months ago for it. Not to mention that the xb1 runs a customized version of dx12.

If I were MS, I'd take advantage of the behemoth case it's nestled inside of and overclock the living crap out of the thing. It's like 3x the size of a ps4 with inferior hardware! Talk about the engineering crew second guessing themselves. Hurt by dreaded RROD. Now they have a shoe box that could cool an APU based on 60nm architecture... And the PSU is external. What a mess.



Last edited by DemonNeno on 1/16/2015 10:09:56 AM

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WorldEndsWithMe
Friday, January 16, 2015 @ 9:07:30 AM
Reply

I get the urge to react, but I think they should stick for another year to leverage the head start. By the end of the year PS4 will have exclusives like Bloodborne, Uncharted 4, and The Order which people will want to add to xmas lists along with October multiplat releases that run better on PS4.

Then in March 2016 drop it $50 along with the next God of War release and possibly the new Guerrilla Games RPG. That'll restart interest in the new price

Last edited by WorldEndsWithMe on 1/16/2015 9:09:44 AM

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Temjin001
Friday, January 16, 2015 @ 12:02:12 PM

I feel certain they'll drop it much sooner than next year. my guess is Sony will wait another month. They'll see how ms fairs outside of the holiday bustle and then go from there.

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Temjin001
Friday, January 16, 2015 @ 12:10:48 PM

I also can't think of a console in the last 20 years no matter how good it was doing, or any electronics device for that matter, go 2 years without any price drop.

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Shauneepeak
Friday, January 16, 2015 @ 12:48:09 PM

I think a small price cut right in March when a number of this years major games will be launching, including Sony exclusive Bloodborne, would be a better idea.

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Rachet_JC_FTW
Friday, January 16, 2015 @ 11:27:19 PM

maybe that too we'll just have to see how they decide to react to this price drop as it affects market share and other sales and such

Last edited by Rachet_JC_FTW on 1/16/2015 11:27:45 PM

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Evil Incarnate
Friday, January 16, 2015 @ 9:44:26 AM
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Microsoft devalued their product with the holiday sales they had in place. A price cut may not be enough considering the fact that they were also including two games and a fifty dollar gift card. I see this all the time in the audio industry with impatient loudspeaker companies trying to promote a new series within their brand.

It's going to be hard for Microsoft to say "here is our product for $350 even though we were just selling it for $350 + $150 of free games and gift cards".

Also, I feel like this price flip-flopping does not give consumers confidence in their purchase and creates buyers remorse within the those early adopters of the brand. Usually, you can expect a price drop, but a permanent price drop. This marketing ploy is unusual and I don't quite understand what Microsoft is trying to achieve here.

Sony needs to stand strong with their pricing until they need to fuel more sales. Once they drop the price it needs to be permanent. I think it's to early in the life cycle of the console for Sony to think about a price drop for the sake of a made-up consumer console war.

Last edited by Evil Incarnate on 1/16/2015 10:03:32 AM

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Underdog15
Friday, January 16, 2015 @ 10:08:13 AM
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In Canada, you can get an XBOX1 for $349 or a PS4 for $449. That doesn't help, either.

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maxpontiac
Friday, January 16, 2015 @ 11:31:58 AM
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I really think Sony should take a "wait and see" approach with the price point now that the holiday season is over.

I only say this because Sony is absolutely dominating in world wide sales. So if the PS4 can say competitive with the XB1 here in the USA, I don't see the rush.

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Temjin001
Friday, January 16, 2015 @ 11:52:51 AM
Reply

Sony bundled TLoU with the PS4. That was their weak sauce counter.

If Sony wants to take back the lead they'll need to respond with something better.

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Rachet_JC_FTW
Friday, January 16, 2015 @ 11:26:22 PM

indeed they will need to it won't be enough just a free game drop the price some what as well

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miro_the_cat
Friday, January 16, 2015 @ 12:30:08 PM
Reply

Nice reasoned discussions here. From a personal perspective I'd like to see the PS4 stay on top. A price drop in the holiday season attracts a lot of attention and impulse buys, but I'd be interested to know from someone who knows marketting if that tails off throughout the year.

PS4 is clearly the best value, and by the end of the first quarter with The Order and Bloodbourne under its belt will have the best exclusives without argument, I reckon.

Is it true that, as long as it can still be afforded, a higher price tag reflects a sense of greater quality to buyers?

I don't know marketting so I don't know. I'd appreciate a flexible approach from Sony depending on how sales go. Keeping that 2:1 lead, or better, extending it, would be awesome :)

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Rachet_JC_FTW
Friday, January 16, 2015 @ 11:25:35 PM

yeah i do too cos when the xbox is on top things atleast seem to be worse off than when the playstation is on top in gaming

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PSDreaM
Friday, January 16, 2015 @ 2:39:57 PM
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I hoped PS4 and Xbone has price slashing console war just like the current America's shale gas vs OPEC, hence slashing global oil price to compete for market share. Whoever last longer in price slashing in the long term wins. Double win for us consumers.

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Rachet_JC_FTW
Friday, January 16, 2015 @ 11:23:23 PM

yeah thats true and thats part of it but yeah same idea

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Shauneepeak
Friday, January 16, 2015 @ 9:41:16 PM
Reply

Wow I didn't realise just how much Microsoft was losing even without the Kinect the X1 is still a lot more to manufacture compared to the PS4. x1 is $396 and I was right before Sony makes about $20 with it being $381.

Last edited by Shauneepeak on 1/16/2015 9:53:53 PM

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Kryten1029a
Saturday, January 17, 2015 @ 2:50:17 AM

At launch, the Xbone production cost was $471 with $75 of that coming from Kinect. The cost may have come down some, but at $350 they're probably losing money by the boatload. They can afford it, but it shows how rough the launch was when they're willing to take that kind of hit.

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Rachet_JC_FTW
Friday, January 16, 2015 @ 11:22:36 PM
Reply

if you say that the xb1 is going to be 350 indefinatly then sony needs to drop their price 25-50 bucks cos other wise they will be alot les competitive thats just the way the world works

happy gaming

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