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Technology Stocks : Gears of War: Next-Generation Consoles Duke it Out

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To: Wyätt Gwyön who wrote (9)3/3/2007 12:16:58 PM
From: Wyätt Gwyön of 12
 
looks more and more like Sony will have to make a painful price cut, which of course will be matched by MSFT. Sony likes to hype that users are getting a bargain for $600 as the PS3 includes a Blu-Ray player and a "supercomputer". but most people don't even have HDTV and just want to play games.

for many, MANY potential users, a difference of $100 is huge. this is why MSFT has kept the cheaper (non-HDD) 360 SKU costing $299. i wondered why anybody would get this when for "just" $100 more you get a HDD and a wireless controller. but for lots of lower/middle-income and student types, that $100 is real money. a student friend of mine is now getting a 360 and he is opting for the $299 model (after getting a used HDD 360 on Ebay which was DOA). he is willing to put up with the wired controller and get a $20 or whatever data card.

later this year, Sony will cut the PS3 by $100 and MSFT will do the same. by next Xmas season (2007 Thanksgiving), the 360 lower-end SKU might only cost $199. that will bring on a huge flood of new prospective buyers. Sony will still be playing catch-up at $399/499, and will still be losing tons of money on each console sold.

ozymandias.com
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