Microsoft exec predicts Sony will be forced to cut PS3 prices

After a couple weeks in which the 360 posted better sales numbers than the PS3 and it was revealed that Sony inadvertently funded Microsoft's next-gen development efforts, you'd think Microsoft execs would be getting a little cocky, but it sounds instead like they're expecting a renewed offensive from Sony based on price. That's direct from the 360's director of product management Aaron Greenberg, who told Edge that MS "absolutely expects" a PS3 price cut in the next few months, and that the team is "frankly surprised it's taken this long." Of course, we've been hearing tons of PS3 pricing speculation from all corners lately with no change to that $399 MSRP, so we'll see how it goes.

[Via Xbox 360 Fanboy]

[gabe @ Jan 7th 2009 7:18AM]

i'd consider a ps3 @ $250

anything higher is too rich for my blood

[Paul Chapel @ Jan 7th 2009 7:36AM]

The Xbox 360 is a very sub par console with a lot of problems, faulty NAT issues in Xbox Live, twelve year olds screaming in your ear and cursing because they think it's cool. The so-called "exclusives" that the 360 has, are all available for your PC, while the games on the PS3 actually fit the description. And then there's the ridiculous point system. Why the hell can't Microsoft just use real money? You have to be a math whiz to figure out what points means in terms of real dollars. Even after I left the Xbox 360 after two Red Rings of Death, I couldn't cancel Xbox Live from Microsoft's website or even on the console itself. They want you to get on the phone and call their staff in India.

The Xbox 360 was just released early. The PS3 has more capable graphics and storage as evidenced by the games like Metal Gear Solid 4 and has more games available due to the PS2 emulation. Get a PS3 and wait. You won't be sorry when the developers continue to take advantage of what the PS3 has to offer. The Xbox 360 "exclusives" have dried up. We got GOW 3, we got Gran Turismo 5, Little Big Planet, Resistance 1 & 2, the Rachet and Clank series, Motorstorm 1 & 2, etc, etc. Sorry for sounding like a commercial, but the future of the PS3 is very bright.

[eggothewaffle @ Jan 7th 2009 7:41AM]

"The PS3 has more capable graphics..."

Compared to what? The Xbox 360? Sure, but that's like winning a gold medal at the Special Olympics. You might be a winner, but look at where you're playing.

You know it's bad when supposedly HD consoles don't have enough graphical horsepower to actually render modern games like Call of Duty 4, Haze, Halo 3, or Grand Theft Auto at the low HD resolution of 1280x720.

There are those who say rendering resolution doesn't matter, but go try playing COD4 on either platform and trying to see across Bog or even Killhouse. Yeah, good luck with that.

[Maestro @ Jan 7th 2009 7:41AM]

@Paul:

Fanboy, party of 1...

[anonym @ Jan 7th 2009 7:51AM]

@Paul Chapel

You may want to review you facts. The XBOX GPU is more powerful than the PS3 GPU.
Its a fact, not an opinion.

[Paul Chapel @ Jan 7th 2009 7:53AM]

Oh, I almost forgot.

I have to say I also didn't like Ads being on my Xbox 360, especially after paying 50 bucks for the Live service. I managed to disable the Ads in the Dashboard Settings. There are two sections that you can select to "Opt Out" of both the ads and the promotions. Let me tell you however, they don't make it easy to find. And there is also no place for removing a credit card. It's almost as if Microsoft only wanted me for my money!

[EI8HT @ Jan 7th 2009 7:53AM]

@ eggothewaffle

i won a gold medal at the special olympics...

[Paul Chapel @ Jan 7th 2009 8:00AM]

Oh, and another thing. Halo 3 sucks. Gears of War 2 was released way too early and Gears of War 1 is so "exclusive," it's even available for OS X. Oh, the horror!

[Aaron @ Jan 7th 2009 8:28AM]

@Paul Chapel
"PS3 has more capable graphics"

If Rockstar North, producers of the biggest Xbox 360/PS3 game of 2008, can't get the PS3 to match the Xbox 360 in the graphics stakes, what hope is there for regular developers? In PC terms, the PS3 has the better CPU, the Xbox 360 has the better graphics card.

I like your list of PS3 exclusives. Admittedly there's some good games on there (and some excellent ones you've missed) but it sounds like you don't even own a PS3. Have you actually played Resistance 1? It's absolutely dire. The sequel, whilst better, is still only slightly above average.

[Kelmon @ Jan 7th 2009 8:31AM]

@Paul Chapel

I don't disagree with any of your points but the fundamental problem is that the PS3 is too expensive. Under no circumstance am I prepared to pay the best part of £300 for a games console. Sony may be trying to sell it based on other things that it does but clearly the customer just sees a games console that is more expensive than the competition and/or does not value the additional features.

[Bionic Radd @ Jan 7th 2009 8:32AM]

The best part about Paul's fanboy reply is the OP never said anything about 360. Also, if I am reading it right, Paul, did you actually suggest spending 400 bucks on a console and then play the waiting game for it's true value to reveal itself? Yea, that makes me want to rush right out and get a PS3, I tell ya. The fact is 400 dollars is too high for a game console. In the minds of pretty much any rational person, a game console is a toy, an optional expense. Sony tried buffaloing people by touting the PS3s fancy Blu Ray and multimedia capabilities, but guess what? I don't care about anything but the console's ability to play games. I bought my 360 to play games and nothing else. When the PS3 gets down to 300 or even 350, I will consider it.

By the way, you can't use PS2 as an incentive, anymore. They took out all backwards compatibility for PS2 in the new PS3 units.

[bob @ Jan 7th 2009 8:32AM]

i'm a mac lovin' MS hater but i have a 360 and i consider it a great product (other than ms's lack of experience in hardware manifesting itself with a higher failure rate than any other hardware) The allround experience / price and game availability coupled with the live / dl center wortks really well as a console experience, Not however as a media center, that what my appletv is for im surprised anyone can hear a whole movie over that machine noise lol.

[Paul Chapel @ Jan 7th 2009 8:39AM]

@Kelmon

Yeah, I see what you're saying Kelmon, but the PS3 has Blu-Ray. It's just not cheap technology yet. And you also have to take in account that you get what you pay for. I found the Xbox 360 to be a big headache, but I see fellow PC users giving Microsoft a pass like they ALWAYS do. I see this strange behavior even with people who have had multiple RRODs and scratched disks. No one would tolerate such faulty hardware if it were any other company, except maybe for Apple.

(Not that I want to go THERE. Just saying. I own a very nice Macbook Pro.)

[Neha @ Jan 7th 2009 8:47AM]

Paul Chapel, I think you'd be better off lubing up mighty mouses with Daniel Dilger over at his blog. You seem to wasting a lot of time convincing people here that 'Microsoft is teh suck'. You don't have to protect the virginity of Steve Jobs at every second anymore, live life.

[Paul Chapel @ Jan 7th 2009 8:58AM]

Did anyone read the Nielson report on the PS2 and how people spend more time playing it than any of the newer consoles, even the best selling Wii? That goes to show that Sony understands how to develop an ecosystem. They're in for the long term. Microsoft basically killed development for the original Xbox when the 360 came out. They just want to win and keep their game dominance, lock you back into their DirectX homogeny.

Microsoft is like a one night stand, when it comes to game consoles. Sony is there for the relationship.

[Kelmon @ Jan 7th 2009 9:18AM]

@Paul Chapel

I think Sony's problem here is that they made the PS2, which was quite expensive at release, and thought that they could get away with making something more expensive. The PS2 was a great games machine that didn't really have much in the way of competition worth knowing about and the price plummeted to something acceptable. The PS3 is just too expensive relative to pretty competent competition and customers simply don't value the "extras" that they are being asked to pay for. I, for example, have absolutely no interest in Blu-ray and I am not going to pay almost double the cost of a 360 for a feature that I honestly don't value. I have nothing but contempt for Microsoft and their shenanigans with the 360's "design" but that doesn't mean that I am going to give Sony a pass simply because their console is better designed. In the end I bought a Wii and I'm very happy with it because it plays games and doesn't cost very much. If I want more challenging games then I'll simply dust off the old PS2...

[Paul Chapel @ Jan 7th 2009 9:27AM]

@Kelmon

Sony pushed Blu-Ray because the Japanese actually care about technology. With Blu-Ray, they're pushing technology forward and it's not so they can just lock you into some proprietary Sony format. Blu-Ray was made with the collaboration of several companies.

Microsoft traps people with this cheap console (which is a piece of crap hardware wise, but I digress) and then they nickel and dime you for everything they can once they get you in the door. Excuse me if I'm wrong, but doesn't Microsoft still charge people for changing their gamer tags? That's the kind of BS I'm talking about. Even though the PS3 is priced fairly high, Sony is still losing money on every console sold and what's more, they give you free stuff like internet service!

Anyway, congrats to you for not being a MS drone and going for the better option. Good luck to your gaming on the Wii.

[EI8HT @ Jan 7th 2009 11:11AM]

i think you two children need to be separated!

[LameDuck @ Jan 7th 2009 11:33AM]

Paul Chapel: You're bawwwwwing about kids being on XBL, then you come here and act like a 10 year old with a hair up his ass? Nice one. Most the crap you're spouting is dead wrong, the other half is just blatant trolling. I've heard just as many bitchy 10 yearolds on PSN as I have on XBL. More so on games like Madden, where they think that virtual footsball is real.

Things you may want to look up: Spec sheets for 360 vs. PS3 GPUs, Blu-Ray adoption in Japan, meta scores and reviews for the games you listed/will list, what a person will want to pay for vs. what a company tells them they want to pay for, average income of a middle class home, and how to stop giving bjs to a company that doesn't care about you or your opinions.

Not everyone wants to pay for blu-ray and wireless. Not everyone wants free, but crappy, online play where you are charged for something as stupid as an "online magazine". Not everyone wants to be the bitch of a company that is so full of itself that it threatens the very existence of space and time.

Love being Sony's bitch boy and the PS3? Fine. I like being MS' and Nintendo's bitch boy and I like my 360, but I know how to not be a raving fantard and I know WTF matters in life.

Get a life and go to school. I'm sure they miss you in your 4th grade remedial classes.




PROTIP: What console you'd rather wast your hard earned cash, or in your case your parents hard earned cash, on DOES NOT MATTER. Being respectful does, though.

[Rsaeire @ Jan 10th 2009 7:11AM]

Honestly Paul, how can you say "With Blu-Ray, they're pushing technology forward and it's not so they can just lock you into some proprietary Sony format." All Sony do is try lock the consumer into proprietary format after proprietary format. Betamax, Memory Stick Pro, Duo, M2, Blu-ray; these are some of the formats Sony have tried lock us into. I will also not accept or entertain the idea that the BDA, and not merely Sony, are behind the Blu-ray format, as Sony are one of the biggest, if not the biggest, presence within the BDA and have the most to lose if things go sour with the format; they also had the most to lose during the HD format war, since they were pushing the format the most with the Blu-ray players and the PS3. Honestly, did Sony not think we'd see their Trojan horse tactic of manoeuvring a Blu-ray player under our noses in the form of the PS3? There’s a reason the PS3 still costs so much and its long known the main reason is the Blu-ray drive.

In addition Paul, your posts, punctuated with lots of little anecdotes about how the PS3 is the best console and how we should all wait and buy one, are blatant fanboy rants through and through. I will buy a PS3 when the price is right and when I feel there are enough good games that interest me, and not when some fanboy rants and raves about how console X is better than console Y because they say so.

[nohone @ Jan 7th 2009 2:42PM]

Paul, so you found the PS3 fanboy talking points. Great. You owned a 360? What was your gamer tag? 360 is full of yelling teens? What about home? PS3 has a better graphics chip? See the comments of others.

But I think the best part of this is you complaining about the 360 not having Blu-Ray. Didn't your Lord and Savior, The Dear Leader Steve Jobs tell you that Blu-Ray is a bag of hurt? I can understand your rants about the 360, being that anything that has Microsoft associated with it (except for your Microsoft mouse) you hate. But shouldn't you be carrying the official Apple line and hate Blu-Ray? After all, isn't iTunes good enough for all your video needs?

[FelipeCalderon @ Jan 7th 2009 7:20AM]

They have to lower the price if they want to survive....I don't know if it's still posible for Sony to gain anything from this generation. Maybe they just need to move on and bring PS4.

[Dave Chappelle @ Jan 7th 2009 7:23AM]

If they just let the PS3 run for another 4 or so years it will be ok. I think the xbox 720 will have blu ray so Sony are already safe and the consoles processor is incredibly good in fact Sony have said they will stick with it next gen.

Just wait until 2010 a PS3 slim would compete with the next Xbox.

[Dave Chappelle @ Jan 7th 2009 7:21AM]

Well M$ executives should be worrying about their console coming last this generation because it looks very likely. Playstation has many years left, Wii potentially could also have many years left (not that it really needs much more time to be a success) but the Xbox does not the console is holding back the games for this generation with its inferior DVD player compared to Blu Ray.

[Tubes @ Jan 7th 2009 7:36AM]

Yes, the PS3 will probably (hopefully) have a long shelf life just as the PS2 did. But, the problem is that, unlike Wii and Xbox, the PS3 is bleeding money like split artery RIGHT NOW. The Playstation Team is losing jobs today and the Wii and Xbox Team isn't (as much). It needs to be a success now, not 4 years from now.

[chefgon_ign @ Jan 7th 2009 12:42PM]

You really think that having a DVD drive instead of a Blu-ray drive is enough to single-handedly ruin a console? Multiple discs will solve that problem for 9 out of 10 games, and even if the tenth game isn't possible it doesn't really matter because you've already got the other nine. Add in the fact that games that are too big for DVD are relatively rare and it becomes a non-issue.

[Shiz @ Jan 7th 2009 7:21AM]

I would not be shocked to see a price drop before summer. I would buy a 360 before a PS3 because I can play FFXI on it and don't have to go searching all over for the SKU that will play it. Sony turned me off thanks to all the different models and the further lack of backwards compatibility.

[Level 5 @ Jan 7th 2009 7:31AM]

X2. I just bought a PS3, knowing it wasn't backwards compatible, and that really did dissapoint. However, considering it's main duty is a media server and not a game machine, that softened the blow. On the other hand, my PS2 is exploit booted and has over half my entire PS2 library on HDL 0.8c including imports, the system isn't chipped; so for some of it, PS2 backward compatibility didn't matter. I'd love upscaling and being able to use a DS3 with my PS2 games though.

On the topic of the MS exec, I'd think Sony's BEST move would be to knock $50 off the prices of each model. Given their track record though, I'd say it's more likely the price will remain the same, but newer models will have the 45nm Cell (that isn't out already is it?), and a bigger hard drive. Cost cutting FTW.

[chefgon_ign @ Jan 7th 2009 12:46PM]

@Level 5

Don't worry about losing the upscaling, it's just a post-processing effect and it's damn near impossible to tell the difference between the effect being on or off. It doesn't actually render anything at a higher resolution, games that look blurry and jaggy when played on your PS2 are still going to look blurry and jaggy on the PS3.

[nanobis @ Jan 7th 2009 7:39AM]

I wouldn't mind a ps3, but there way too expensive, plus lack of backward compatabilty is an issue. So id happly buy a 360, for less than half the price of a ps3, plus there are a heck of a lot more games for it.

[Zuato @ Jan 7th 2009 10:16AM]

For half the price you get no hard drive nor wireless. By the time you add those in (if you use the microsoft parts) you're now back to the price of a PS3.

Where Microsoft gets you on price they make up in peripherals. For example - Xbox360 Pro with a 60GB hard drive $299. If you want wireless you have to pony up another $99. That puts you right at the PS3 with the 80GB hard drive and built in wireless so the price point is now a wash if you want wireless.

Last article I read recently has Sony cutting the loss per PS3 console sold down to around $50. They could cut the price, but I suspect they will hold - they are getting a fair amount of revenue off movie rentals/purchases from their online store through the PS3 not to mention software and game add-ons.

[nanobis @ Jan 7th 2009 10:38AM]

you seem to be missing the point. Ok you get all that stuff for the ps3 as standard however,:
for 1 wireless wont be any use to me as my uni flat has a built in network, and i'd only need it if/when i moved back home in 3 years.
theres no point in a wireless controllers as my tv/moniter is only 17" and rooms not big enough to get that far away.
a HDD for the xbox is only £20 for 20gb adn thats fair cheap.

you have a valid point, but the 360 is better value as a bear bones console that the ps3 in my book.

[Dorf @ Jan 7th 2009 10:50AM]

I'd be pissed if I had to pay more for crap I don't need like Wireless or Blue-Ray. Don't want it, don't need it.

[John @ Jan 7th 2009 2:48PM]

I paid $500 for my PS3 and I'm happy with it. Wireless was a must since my basement doesn't have the handy builtin jacks the rest of the house does, and I got a model that still had BC. With games at $60, you'll end up spending a hell of a lot more than the cost of your console on games eventually, so I don't really see why price is a huge object.

[Boyo @ Jan 7th 2009 7:40AM]

To which Sony replied You really going to believe what this guy says? Isn't he the one who scratched all your games up?

[absinthe party @ Jan 7th 2009 7:49AM]

No, don't do it! I kind of enjoy being an elitist PS3 owner. This will be just like when I start hearing my favorite indie bands dropped in casual conversation and I have to dispose of the t-shirts I bought. I don't want to have to throw out my PS3 :(

[Zunavio @ Jan 7th 2009 7:49AM]

Microsoft forced SONY to cut PS3 prices. In short

[jared @ Jan 7th 2009 7:50AM]

Wow. Bravo Mr. Greenberg. Without your predictions, nobody would ever know that as hardware becomes less expensive to produce, that the price would drop.

[Rob @ Jan 14th 2009 11:23AM]

Don't be an idiot. All he said is that they're surprised there hasn't been a price cut yet, and they are expecting one soon. He's talking about "when," not "if," as anyone with basic comprehension skills could tell you.

[irfan @ Jan 7th 2009 7:53AM]

And i`ll be waiting......................................

[anonym @ Jan 7th 2009 7:54AM]

Or maybe in saying that he was hoping to stop a few people from buying a PS3 now.
I mean.. stop one of the 2 people that are still thinking of buying it, that is.

[Spinfusor @ Jan 7th 2009 7:59AM]

I thought this "Sony funded the Vole" crap was put to bed the day the story came out.

David Shippy and Mickie Phipps have a book to sell.

[eddie @ Jan 7th 2009 8:05AM]

History shown 2 things that are a guaranteed failure, that sony should have realized.
1. How do you expect people to drop $499. and $599 into a console when it first comes out? are you not living in this world? do you not realize that MOST people cannot afford your product, even 2 years later $399. is still steep. the 3d0 did the same exact dumb move. dropping a product at $800.00 and selling it for half the price 6 months later
2. Technology that is too early is, in most cases, a bad move. Dreamcast anyone? if sony would have waited a bit on that ridiculous blu-ray then the whole story would been different. you cant expect people to jump ship into blu ray from dvd like they did dvd from vhs. its not that big of an upgrade like it was in the past.
I am the biggest sony fan, but i havent purchased a product from them, other than the ps3, in 10 years. i think its time to give the market what it wants.
STEP IT UP SONY/

[Will C @ Jan 7th 2009 8:44AM]

Blu Ray not that big of an upgrade over DVD?

I guess you're one of those consumers who doesn't have a TV big enough for how far away s/he is sitting...

At ten feet away from my 50" Panasonic I can see a world of difference in picture quality and can hear an even bigger difference in my 7.1 audio... Maybe its your equipment?

[Frank @ Jan 7th 2009 9:03PM]

If Sony hadn't used the Blu-Ray when they did for the PS3 then the high definition war would still be going on which wouldn't benefit anyone. Its the PS3 which really tipped the balance and got people watching HD movies. Just because you don't want to move forward doesn't mean everyone else should be stuck in the dark ages.
Secondly, the price on release actually wasn't that bad. In the UK the 60GB PS3 was £425 when released and the 40GB PS3 was £299 when released (both in 2007). When the ZX Spectrum first came out it in 1982 it cost £174 which is equivalent (with inflation) to being £445 now. The Commodore 64 was £399 in 1983 which would be £970 now! The original Playstation was £299.99 in 1995 which would be £416 in todays money, and the original Xbox was £299.99 in 2002 which would be £352 now. When you use NEW technology to push things forward it costs money to develop and is called progression. If we didn't develop and use this technology there would be no incentive to invent new and better things and we would still be playing with a ball attached to a cup with a piece of string.

[Brainslugged @ Jan 8th 2009 5:18PM]

@ Frank

That ball/cup game sounds good. Is it available for download?

[wawa @ Jan 7th 2009 8:07AM]

Can Sony really afford to drop their prices given they are already well below cost? I am about to buy a gaming console, I am 70/50 (70% being towards XBox) 1 for price and 2 for games, so unless the PS3 drops within the next week or 2 I think my mind is made up. I don't really give a rats ass about the bluray player so that's not one way or the other for me.

[anonym @ Jan 7th 2009 8:10AM]

70+50 is 120.

I guess you should drop the idea of buying a PS3 and get a calculator.

[anonym @ Jan 7th 2009 8:12AM]

on second thought, you probably are in the right demographic to buy a PS3. :)

[David S @ Jan 7th 2009 9:28AM]

@anonym don't be mad that wawa's 20% more man than you.