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Analyst: Xbox price cuts put PS3 under pressure

Posted: 14 Mar 2008 ?? ?Print Version ?Bookmark and Share

Keywords:Xbox 360? PS3? game console war?

Sony's PS3 game console was put under renewed pressure by price cuts to Microsoft's Xbox 360 console in Europe, according to Strategy Analytics.

Microsoft has confirmed that prices of each of its Xbox 360 console models will be reduced from Feb.13. The Arcade entry level model is now the cheapest of the current generation of consoles from Microsoft, Sony or Nintendo. The most expensive, the Elite, is now $81.19 (GBP 40) less expensive than the Sony PS3.

"Sony will be nervous that the PS3's recent sales surge may fizzle out now that the premium Xbox 360 undercuts the PS3 by GBP 40, and the cheapest Xbox model is almost half the price of a PS3," said David Mercer, principal analyst. "Sony will be scrutinising the daily sales reports, but will probably try to hold out until later in the year before making its next price move."

Strategy Analytics also notes that Microsoft's Entertainment and Devices division, which includes Xbox activities, has moved into profit over the last few months.

"Microsoft must continue to drive cost out of console manufacturing in order to sustain these improvements in financial performance," noted Mercer.




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