Sony and Microsoft Price War Begins: Xbox Beats PS2 By A Fiver

Microsoft pre-empts PS2 price cut with sub-£100 consoles.

Posted by Staff
As the games industry gears up for the predictable pre-Chrimbo marketing battles, Sony and Microsoft are ready to go head-to-head in a pricing war. Sony will be expecting a warm reception to the new PS2 price tag of £104.99 – due to be officially announced later this afternoon, whilst Microsoft has predictably attempted to take the wind out of Sony’s sales (ha!) by jumping in and announcing a price of £99.99 for Xbox.

Sony Europe had previously suggested that price-cuts weren’t necessarily the best way to prolong the life of the PS2, but to remain competitive, clearly such action was necessary. Microsoft, on the other hand, has more tangible reasons to bring the price down below the monkey mark. For many, an Xbox purchase would be as a second console – and bringing the hardware down to a two figure sum might now make that a more viable option in time for Xmas.

Eduardo Rosini, Regional Vice President of Xbox, announced the sub-£100 tag at lunchtime today, at the Leipzig Games Conference, “With this new pricing, even more European gamers, casual and otherwise, will be able to enjoy Xbox this Christmas.”

Of course, the success of these price drops will, to a certain extent, depend on what bundled packages are made available. A PS2 Eyetoy Play/Chat bundle would hold much appeal at around the £140 level, possibly attracting people not so well-acquainted with gaming; and a Xbox bundled with a top title like Ninja Gaiden, or even Halo 2, would surely sell well for around £120. Naturally, such packages would depend on the strategy of retailers etc., and nothing has been specifically confirmed at this stage.

The new Xbox price will become a reality on August 27, and PS2's will fall to £104.99 as of tomorrow. With both machines set to be cheap as chips (made from incredibly expensive potatoes) it should be a merry Christmas indeed for those looking to expand or establish their console collections.
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Comments

ohms 18 Aug 2004 16:15
1/9
What kind of dumbass price is £104.99 !?!

Obviously M$ will drop to £99, it's a sensible price.

Joji 18 Aug 2004 16:28
2/9
To be honest I still think Sony are having a laugh with the PS2. The monolith should have been below 100 pounds about two year ago. Now it reaching the end of it's life cycle and folk are still playing over 100 pounds for it. What a running joke. Sony clearly hate price cuts, even when the are the market leader of three systems. Yes, they are a business, but even MS (who too love high prices have mangae to cut there's lower, out of despiration or otherwise) are lower in price.

And Sony will still be counting the pennies from all the PS2 accessories you have to buy to play certain games. Surprised this is still the case, which makes me want to see the PSP's price tag even more. They love to keep the prices high, so PSP will be the real telling of their greed.
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cul04 18 Aug 2004 16:33
3/9
Finaly...now its time to buy the box...lots of great games and a good back cataloge (lets wait for the 13% market chare to grow to 20% before Xmas)
ohms 18 Aug 2004 23:38
4/9
£104.99 is such a half-arsed attempt at a price drop it's laughable, are sony so desperate for that extra fiver. LOL.

Deviluck 18 Aug 2004 23:38
5/9
in the next 6 months, sony will probably drop it too 99 as well i think, its a more aesthetic figure, and things sell well at it.
Smelly 19 Aug 2004 16:37
6/9
Joji wrote:

>To be honest I still think Sony are having a
>laugh with the PS2. The monolith should have been
>below 100 pounds about two year ago.

Simple economics..

If something is still selling well, keep your price high. If it stops selling so well.. lower price.

There's been no need for them to lower their prices.

Mind you, i've been holding off buying one (soley to play gta), I might get one, but even at 100 quid it's too expensive for what it is.. I'll pay 60 quid.. or 100 quid with new gta included.
Ben Furfie 19 Aug 2004 22:37
7/9
Deviluck wrote:

>in the next 6 months, sony will probably drop it
>too 99 as well i think, its a more aesthetic
>figure, and things sell well at it.

Yep, as even Sony themselves have said, £99 is a magic price point, its the point where consoles start getting into the realms of Impulse purchase...
Karlos 20 Aug 2004 09:50
8/9
Sony is a business and knows that £99.99 is the magic Price point. Have they purposely put the rrp at 104.99 in the expectation that the retailers will discount to the magic level - and then Sony doesn't have to fork out the extra £5 to customers ????
config 20 Aug 2004 09:52
9/9
Joji wrote:

>To be honest I still think Sony are having a
>laugh with the PS2. The monolith should have been
>below 100 pounds about two year ago. Now it
>reaching the end of it's life cycle and folk are
>still playing over 100 pounds for it. What a
>running joke.

Why should Sony cut prices is the system is selling but the shelf-load? There's no joke in what they're doing.

>Yes, they are a business, but even MS (who too
>love high prices have mangae to cut there's
>lower, out of despiration or otherwise) are lower
>in price.

MS - company so unhinged, it cut the Xbox price just 6 weeks after launch.! LOL!
Just haw many Xbox price cuts have there been since launch? I think it's somewhere in the region of three - is this the fourth?

>And Sony will still be counting the pennies from
>all the PS2 accessories you have to buy to play
>certain games. Surprised this is still the case,
>which makes me want to see the PSP's price tag
>even more. They love to keep the prices high, so
>PSP will be the real telling of their greed.

It's hardly greed. The hardware cast a bucketload in R&D and fabrication/manufacturing. Most of the time the consoles actually lose money, because they cost more to make than they're sold for. MS is heamoraging money on the Xbox - this price drop just opens the wound further. Greed is evident in the licensing costs on software, and the ticket price of games.
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