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US: Analyst predicts Xbox 360 victory this Q4

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US: Analyst predicts Xbox 360 victory this Q4

Says Sony needs to seriously consider PS3 price cuts following Microsoft’s aggressive RRP reductions

Jesse Divinch of analyst firm Electronic Entertainment Design has said that Sony must seriously consider adjusting the RRP of PS3 this Q4 or else face the prospect of being beaten by Xbox 360 in the festive sales war.

Edge Online quotes Divinich as saying: “Between Sony and Nintendo, Sony should be the most concerned about the 360's price cut. Going into this holiday season, the PS3 will not only have the highest price point, but also the smallest software library, weaker line-up of exclusive titles and a less popular online network.

“I suspect that the reason why Sony has been so adamant about maintaining its current price point is because it has not reached a more efficient scale in its manufacturing of the PS3.”

Divinich also had words or praise for Nintendo, who he believes has now reached an unassailable position: “Nintendo need not worry about Microsoft, or anyone else for that matter. Nintendo will always be its own worst enemy in terms of keeping up with demand.

“Nintendo has so much wiggle room on the Wii’s pricing that they will never be afraid of a competitor trying to use price as a differentiating feature.

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“If they ever felt threatened, they could drop the Wii down to $149 and destroy a competitors momentum. But in this particular case, Nintendo won’t feel too threatened by an Xbox 360 price drop.”

Enter the Fanboy

posted by ADE_1977 Sep 06, 2008 at 12:33 pm
1

I looked at this article expecting the comments to be full of fanboy rants. But imagine my surprise to find none.
Personally i waited for the 360 price cut to buy mine and if Sony follow suit i may just be front of the cue. For now i shall watch this topic with interest, in anticipation of the now customary mines bigger than yours arguments.

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Re: Enter the Fanboy

posted by Noob Sep 08, 2008 at 8:27 am
2
Noob

Hopefully the fan boys have moved back to N4G or C&VG, or whichever rock they crawled out from under.

. . .although I do think think the 360 is better (value).

(* * *ducks and moves away quickly* * *)

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Re: Re: Enter the Fanboy

posted by scottmpamp Sep 08, 2008 at 2:12 pm
3

I always take many of these analyst comments with a grain salt, not that I am stating any reason to disregard this particular analyst prediction above.
I remind everyone how during the course of last year, pretty much all analysts were predicting an overall PS3 victory, with 360 closely behind in second, and the Wii a distant third with only about 15% market share. This was back in the days when everyone still thought it was a passing fad. Even when the Wii continued to out sell PS3/360 month to month with supply being its only restricting factor, many analysts still refused to believe it could continue. I dont think analysts realised the huge untapped potential of the "casual gaming market" at this stage (sorry to state this cliched phrase). The fact is we all enjoy entertainment, gamers/non gamers, but entertainment in the form of video games has traditionally been seen as too expensive/complicated for the non gamers and hence why many of them have avoided this medium. Nintendo has successfully managed to break down this barrier with the non gamers, and present them with a form of entertainment that they enjoy, that just happens to be a video game.

This is not to state that the gap cant close over the next couple of years (there are several exciting things happening on both the 360/PS3 in the future) but would think it is fair to say initial predictions (and to be fair, they are just predictions) were very very wrong.
It still amazes me how many of the non gamers I know state how much they want a Wii (or have one), so I would expect there are still many more of these to be bought in the future if the number of my small circle of non gamer (and gamer) friends who are still planning on buying one was to be extrapolated across the entire population. I myselft have not yet bought a Wii (due to my "its not hard core enough" snobbery) but definately plan to at some stage (I need to play Mario Galaxy as well as a few others at some stage in my life!)
Even if demand was to subside somewhat for the Wii - a price drop in response would see a huge increase in demand once again - not that I am suggesting they need to do this anytime soon.
This is not intended to be a dig at prior analysts predictions so much, but more just to recognise Nintendo for their genius in the Wii (whether you love or hate the Wii), as they were able to see the video game market as a much broader population rather than just "gamers" and "non gamers" when many others couldn't.
I also remember a news story on BBC 5 Live a few years ago when the Wii was first announced, and they were stating how it was destined to fail, mainly because of the name (did you realise it sounds like Wee ?..hehehe).

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Re: Re: Re: Enter the Fanboy

posted by woodins Sep 08, 2008 at 3:06 pm
4
woodins

true #1

If Sony just dropped their baby fifty quid, it might make it a worthwhile purchase . . . . . . .

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agreed

posted by simbon Aug 09, 2009 at 10:11 am
5
simbon

I agree with the above statement! I have an xbox and i have wanted a PS3 since before release. i just dont think any gaming console is worth as much as the PS3 retails for! a price drop would be well welcomed and would unarguably help sony's sales figures! With Project natal on the horison sony need to pull something out before they are left in the dust! (which i'd hate to see!)

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