Pricey PS3 to plummet over precipice as Xbox 360 cuts bite? E-mail
by Alex Zaharov-Reutt   
Thursday, 03 July 2008
With the entry-level Xbox 360 now AUD $50 cheaper at $349 than the Nintendo Wii, both the Wii and the PS3 are under heavy pre-E3 and pre-Christmas pressure to do something special. Will they cut prices too, launch an all-out software assault or pepper Microsoft with a massive marketing campaign to win the hearts, minds and wallets of consumers?

The Xbox 360, now two years old, has had its prices sliced in Australia to better compete with the pricey Sony PS3, and the amazing little Nintendo Wii, still the hardware sales champion over its two bigger high-def brothers.

Jeremy Hinton, Xbox Group Product Marketing Manager, Australia and New Zealand, said the price cuts demonstrated Microsoft’s “commitment to offer savings to consumers at every opportunity.”

Of course that’s pure marketing spin – if they could have kept prices higher, they would have, surely.

But with the PS3 growing in popularity and the Nintendo Wii continuing the sales home run of the century, something needed to be done to ensure consumers seriously consider the Xbox 360 over its competition.

And why not? Microsoft has done very well by launching the Xbox 360 early, giving it a library of more than 300 game titles, building the world’s best online gaming system for consoles through Xbox LIVE.

Xbox LIVE, says Microsoft’s Hinton, includes “game demos, hundreds of multiplayer games and other downloadable content.”

Of course Hinton can’t add the TV shows and movies that US Xbox 360 users get access to in Xbox LIVE, but perhaps that’s something Microsoft is keeping up its sleeve for later this year.

Why? Well, it'll be closer to the Christmas buying season, especially now that Apple’s iTunes sells TV shows in Australia and reports that Sony is ramping up its online movie sales through the PS3, too.

The delay gives Microsoft time to negotiate such deals too, and if they can do it sooner rather than later, my guess is that they will. Why let Apple have all the fun?

Continued on page 2.



 
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