On the heels of a rumored XBOX price cut around E3, there is a similar rumor about a Playstation 2 price cut in the works. While working at a Target store in Washington state (where Seattle is located, for those who don?t know) yesterday, I had the opportunity to talk with a Playstation vendor. According to this vendor (she will remain anonymous), the unofficial word from Sony is that a PS2 price cut is in the works for later this year (probably around September, in time for the Christmas season). She stated that the price cut could drop the PS2 price as low as $199 US. Read More...
She speculated that this could be a tactic to force Microsoft out of the game console market. According to her, there were two reasons why MS? Japan launch of the XBOX didn?t go over too well; one, Japanese like their graphics just the way they are (round heads and big eyes), and two, the Japanese see the game console market as their market. MS? (an American company) attempt to seize their market is being met with a lot of opposition. In a sense, they have the monopoly and they don?t want to share. At least not with MS.
She noted that, unlike in the USA, the PS2 in Japan already has a hard disk drive (HDD). The price cut of the PS2 could be a move in preparation for the introduction of the PS2 with HDD in the US market. The lower price of the PS2 (without HDD) would be an incentive for consumers to still purchase Sony?s old PS2 back stock, while still having the option of buying the new PS2 (with HDD) at the higher $299 price (current PS2 price in WA state).
This move would most likely force Nintendo to lower the Game Cube price to $150 US. MS, however, is between a rock and a hard place. Each XBOX unit (according to figures I?ve seen) costs MS $500+ US, however, they sell it at a loss for $299 US. Dropping the price even further would most likely force MS out of the game console market (or so Japan hopes). MS? strategy seems to be: take a loss on the console and recoup the loss in the sale of the games. Unfortunately for MS, that hasn?t worked. And they still have to pay back the $2 billion US they had to borrow just to make the XBOX a reality. Unlike with the PS2, new games for the XBOX aren?t coming out fast enough and it doesn?t have a legion of old games to be backwards compatible with.
In short, PS fans will be happy to know that the PS2 is becoming a little more affordable. However, XBOX fans may have to look forward to MS? withdrawal from the market and no more support for their console. Unless a miracle happens, the XBOX could end up in the museum along side other not so successful game systems like: 3DO, Amiga CD 32, Atari, Neo Geo, Sega Game Gear, Sega Genesis, Sega Saturn, Sega Dreamcast, etc.
On an up note, MS will still be around to sell you Windows. Sorry, that wasn?t an up note after all.
KNIGHT
She speculated that this could be a tactic to force Microsoft out of the game console market. According to her, there were two reasons why MS? Japan launch of the XBOX didn?t go over too well; one, Japanese like their graphics just the way they are (round heads and big eyes), and two, the Japanese see the game console market as their market. MS? (an American company) attempt to seize their market is being met with a lot of opposition. In a sense, they have the monopoly and they don?t want to share. At least not with MS.
She noted that, unlike in the USA, the PS2 in Japan already has a hard disk drive (HDD). The price cut of the PS2 could be a move in preparation for the introduction of the PS2 with HDD in the US market. The lower price of the PS2 (without HDD) would be an incentive for consumers to still purchase Sony?s old PS2 back stock, while still having the option of buying the new PS2 (with HDD) at the higher $299 price (current PS2 price in WA state).
This move would most likely force Nintendo to lower the Game Cube price to $150 US. MS, however, is between a rock and a hard place. Each XBOX unit (according to figures I?ve seen) costs MS $500+ US, however, they sell it at a loss for $299 US. Dropping the price even further would most likely force MS out of the game console market (or so Japan hopes). MS? strategy seems to be: take a loss on the console and recoup the loss in the sale of the games. Unfortunately for MS, that hasn?t worked. And they still have to pay back the $2 billion US they had to borrow just to make the XBOX a reality. Unlike with the PS2, new games for the XBOX aren?t coming out fast enough and it doesn?t have a legion of old games to be backwards compatible with.
In short, PS fans will be happy to know that the PS2 is becoming a little more affordable. However, XBOX fans may have to look forward to MS? withdrawal from the market and no more support for their console. Unless a miracle happens, the XBOX could end up in the museum along side other not so successful game systems like: 3DO, Amiga CD 32, Atari, Neo Geo, Sega Game Gear, Sega Genesis, Sega Saturn, Sega Dreamcast, etc.
On an up note, MS will still be around to sell you Windows. Sorry, that wasn?t an up note after all.
KNIGHT
