Peter Moore Dismisses Threat of Pricey PS3

MS marketing honcho preaches populist 360.

Posted by Staff
Peter Moore Dismisses Threat of Pricey PS3
The Sony vs. Microsoft pre-next gen war of words continued this week. In an interview in Famitsu magazine, Xbox Worldwide Marketing chief Peter Moore suggested that the PS3’s high price point will make it unable to compete with the Xbox 360, even in its home territory of Japan.

Rumours said to emanate from Wal-Mart employees are pricing the 360 at $300 dollars. And while there have been figures bandied around for the PS3 – for which no release date has yet been announced – you’ll remember the increasingly barmy Ken Kuturagi’s comments that aspiring owners would ‘have to work hard for their PS3’. And earlier this week, the nVidia camp compared its own pricing strategies for top-end graphics cards with Sony’s for the PS3, boosting speculation once again that Sony is not keen to sell the machine at much of a loss, if any at all. The decision to go with the cutting edge Blu-Ray disc format alone will push up production costs, though it seems that the machine will not come with a hard drive, a component that made the current Xbox more costly for Microsoft to manufacture. With the PSP also a very expensive toy, the niche ‘hardcore’ market is what Sony has its sights set on for the coming generation.

Moore stopped short of revealing a release price for the 360. But he said that Microsoft’s goal with the Xbox 360 is to expand the gamer population, and that one way of doing this is to make the machine affordable to more households. Something, he maintains, that the PS3 will not be. Conceding, that the Xbox had fared poorly in Japan, he pointed to Microsoft’s commitment to supplying titles for the ever-RPG-hungry Japanese consumers next generation, with big names like Hironobu Sakaguchi, Tetsuya Mizuguchi, and Yoshiki Okamoto exclusively signed to foster interest in the console.

It’s no secret that the Japanese have very deep pockets when it comes to consumer electronics, and a proven brand loyalty to Sony this generation. We wouldn’t like to speculate on just how expensive the PS3 would have to be, and how cheap the 360, to turn this around. But in Europe the Xbox has built a name for itself this generation, and it’s hard to see how Sony could hope to compete with a relatively cheap Xbox released months ahead of the PS3, especially if the PS3 takes its time getting here like the PSP has. And let’s not forget there’s a third player in the home console market, too.

PS3; an expensive, graphics focused, elitist console? The only comparison we can think to draw is that of the Neo Geo MVS. And, when we were at school, we didn’t know of anyone with a Neo Geo (except our friend's sister's boyfriend's friend's friend's brother from Hong Kong). Is PS3 ownership destined to be the stuff of playground legend? Let us know what you think.
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Comments

soanso 5 Aug 2005 20:32
1/6
I'm thinking XBOX 360 might do pretty well in japan this time. I know the japanese have been quite resistant to western game systems in the past but looking at 360 it seems microsoft have made a big big effort to court the japanese developers.
I wonder how well the PS3 would sell if it cost the same as the PSX cost.
and you know how well that did
BlackSpy 5 Aug 2005 22:20
2/6
NeoGeo MVS is the arcade hardware, I think you mean the home system.
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Coxy 6 Aug 2005 17:12
3/6
I don't really think the xbox 360 is going to be much cheaper than the PS3 at first, especially when you take into account the price of the new games, internet bills for online games and what not.
Hypnotoad 7 Aug 2005 04:04
4/6
Xbox 360 will be substantially cheaper than PS3 upon release. Sony's strategy is unprecedented from any previous launch so you can't gauge pricing from previous hardware launch trends.

Sony knows that the games market has grown exponentially over the years and there are more than enough high-income game/electronic fans out there that will snap the PS3 up in a heartbeat upon launch, no matter the price, especially in Japan.

Bottom line is PS3 will be very expensive to produce - the fact that the whole BluRay & HDDVD war is trying to be circumvented by negotiations and outside influences, BluRay may not even be a final standard. That's a very difficult position to be in from a manufacturing POV since you don't even know what you'll be needing to produce 'en mass. Initially, they'll end up having to pay a premium for whatever HD media standard it ends up being, even if it does turn out to be BlueRay as we know it today.

Then there's Xbox360 with it's stock DVD ROM drive (I think they're free these days) and their more than willingness to loose money on each system to gain market share and you can see why there will indeed be a hefty price difference.

Similar comparisons can be drawn across CPU costs but that’s maybe another post.

If I had to guess? $299US for X360 and $599US ~ $699US for PS3.
Mister Radtastic 8 Aug 2005 02:15
5/6
I dont think the X360 will do well at all in Japan. Now I do think Microsoft will do MUCH MUCH better than they did with the current Xbox, but I dont think they will come close to making it a real competition in Japan anytime soon. Im thinking of it like a basketball game. The current generation of game consoles in japan went like this: PS2=147 Xbox=11. Round 2 might be something like: PS2=112 Xbox=54.

Worldwide however I think Microsoft is really gonna give Sony a run for their Money. I mean MS is already number 1 in Canada, and some Asian countries. Not to mention its a very well recieved brand in America, europe, etc. MS will either come out on top, or be a very very close second to Sony in this next generation.
miacid 8 Aug 2005 08:16
6/6
Mister Radtastic wrote:
I mean MS is already number 1 in Canada, and some Asian countries. Not to mention its a very well recieved brand in America, europe, etc.


I wonder how many of those are being used the way MS had intended!!!
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