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Sony Cuts PlayStation 3 Prices as Many Xboxes Fail

http://www.nytimes.com/2007/07/09/business/09sony.html

Facing slower-than-expected sales of its PlayStation 3 video game system, Sony said it would announce Monday that it planned to lower the price of its console in the United States by $100, to $500, effective Thursday. The lower price of the 60-gigabyte device comes as a rival system, the Microsoft Xbox 360, is inundated with reports of widespread product failures. Microsoft announced last week that it would spend up to $1.15 billion to repair the machines.

My View: While this may increase the PlayStation's sales, the Xbox already has a huge market share and there is no way that people are willing to dish out an additional $500 plus accessories for a new console just because they won't be able to play their Xbox for a few weeks when they send it back. Plus, with the release of Halo 3 coming, many people will be buying the new Xbox just for the game. I don't see Microsoft having any problems other than all of the cash they have to dish out for the repairs.

Labels: electronics, microsoft, sony

:: Permanent Link :: Posted 7/10/2007 :: 0 Comments :: Links to this post ::

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