Posted Mar 10, 2008 at 01:35PM by Isaac C. Listed in: Wii, PlayStation 3, Xbox 360 Tags: Microsoft, Sony, Europe, Michael Pachter, Jesse Divnich
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Analysts on the console war, after Xbox 360 announces price cut - Image 1  


Gamers in Europe were given a treat by Microsoft earlier when it confirmed the price cut of the Xbox 360, which shaved off about US$ 100 from the tag. The chess pieces are now moving again, as Jesse Divnich might put it (he likens the format wars to chess).

Divnich and Michael Pachter, analysts of the video game industry for simExchange and WedBush Morgan respectively, have given their opinions on the price cut. The verdict? They both agree that the cut would boost Xbox 360 sales (a no brainer).



What's in store for Microsoft and Sony

However, Pachter adds that the price cut would likely cause Sony to introduce a price cut on their console as well. He also believes that the 360 price cut was a result of Blu-ray's success over HD DVD:

I'm sure it is more than coincidence that Microsoft cut price just after Sony won the Blu-ray / HD-DVD battle. Sony definitely gained in the eyes of consumers, who suddenly see the premium for the PlayStation 3 as having some value, and I think Microsoft decided to widen the gap between the two consoles.


Divnich believes that the price cut will give Microsoft the edge for only a short period of time until Sony can react (perhaps with a price cut, as Pachter suggests). However, he also believes that the price cut also give the Xbox 360 the edge over games:

A price cut will also position Microsoft to take advantage of some of the upcoming releases such as Rainbow Six: Vegas 2 and Grand Theft Auto 4, both of which are multi-platform titles and definite hardware drivers.




Divnich on the strengths and weaknesses of each console

Divnich goes on to add that Microsoft needs to continue developing Xbox Live, saying that this is the 360's advantage over PSN: "PlayStation Network will never be able to compete against the level of service that Xbox Live can provide."

On the other hand, he does state the the PS3's advantage over the Xbox 360 is its capabilities as a media device, especially after its victory in the format war: "Sony must continue to push for stronger adoption rates of not only high-definition televisions, but its own Blu-Ray disc players."

Divnich closes by talking about the Wii, saying that Nintendo has no worries with the competition:

The Wii is of course always special and I don't think either the PS3 or the Xbox 360 will ever be able to compete against it - no matter how low either of them drops their price. The Wii just simply offers an experience unparalleled to what any other system can provide. The price is not the selling point of the Wii.




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14 Comments


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   by ISOHaven - 2008-03-10
 » WTF!?!?!?!?!

"PlayStation Network will never be able to compete against the level of service that Xbox Live can provide."

That's a down right lie. Sony could emulate the entire experience. That fact alone makes this comment bogus. Instead they are doing it their way. As it develops it could either still be behind or completly move past it.

To begin with, Sony is allowing more people to compete online (per game) then MS and it's FREE! Not to mention the fact that when Home is released it will blow XBL out of the water.

More info:
http://bazlurgan.blogspot.com/2007/11/xbl-vs-psn.html
http://bazlurgan.blogspot.com/2007/12/xbox-live-vs-psn-round-2.html


   Re: erikbirk2 - 2008-03-10
 » .

yeah, divnich is kind of a douche.

   Re: Quixand - 2008-03-10
 » ISO

you forgot to mention dedicated servers.

to me that's one big plus.

   Re: Mister Common Sense - 2008-03-11
 » .

One thing's for sure, the Wii will always be behind in online service. It's barely any better than the near-nonexistant online of the Gamecube. Cumbersome friend codes, no decent chat ability (possibly forever), few online capable games, the Wii is sooo last gen.

   Re: na2rul - 2008-03-11
 » ISOHaven

Lets put it this way....

P2P lag service is a prestigious wonder
   by Kingofdaberbz - 2008-03-10
 » @ISOHAVEN

Xbl is better as psn copies xbl features ms will continue to add more things.Microsoft been working on their service for 5 years.Microsoft already implemented xna(create your own games) user experience.Home looks more like a second life clone.I haven't used it yet,but I wouldn't go around claiming it'll blow any service out the water just yet.I'm sure that ms already is planning on adding a ton of new features to xbl on top of the ones they have already.Psn can keep copying,but xbl will always have certain features psn don't have and vice versa.


   Re: Quixand - 2008-03-10
 » if you

want to start a count war between how many MS copied from Sony and vice versa in the gaming industry...

you're going to lose buddy.

   Re: hush404 - 2008-03-10
 » OMG

King wins the retard of the year award.

Online gaming, chatting, downloads etc weren't invented by Microsoft and their XBL service. Not even close.

Comparing Home to SL is a fanboy's joke due to jealousy. Talking about opinions on things that suck - XNA is one of the biggest jokes I've heard of. It's a super structured, stripped down POS "Make your own" engine that will produce 6,000,000 crap games for every good one. At the end of the day people are looking the next halo, the next GTA, the next God of War, Not "Crappy game 47 made by Halofreak3364".

   Re: na2rul - 2008-03-11
 » omg

Kingofdaberbz has learning disabilities.

Thats the funniest thing ive read in the place since ages
   by CR0WN - 2008-03-10
 » @hush404

Well said...well said.

   by platon - 2008-03-10
 » okay, some things are not right, some are...

"PlayStation Network will never be able to compete against the level of service that Xbox Live can provide."

That's really wierd since I never played online with my xbox nor my x360. But I'm always online with the ps3. Why? Because of the service ? what do I care, do I play PC games onlince because of "services"? LOL hell no. I play them because it's fun and because IT'S FREE, lol. I'm still on the FFXI challenge. I mean, you pay for XBL gold, then for the game's online, then for your internet connexion... that's crap. And even for other games that doesn't cost per month, I mean, paying after paying it just not my type.

Still, fot the wii it's DAH. But I'm not into the wii, it's priced too high for some 1st party titles (the only one Ii want are 1st party right now... The curse of nintendo).

And the the ps3 vs x360. I suppose that pic is retarded since we can see an HD-dvd player. But anyway, I suppose that people won't buy a console for a 50$ difference. They'll buy the one they want, price is a thing, but it's not THAT big, at least not for 50$. I suppose people will buy for the games they want. They want to play fables 2 and too human more than MGS4 and killzone 2? they'll buy an x360, it's reverse? they'll buy a ps3. Like M$ is always saying ,it's the game that drives people, and not media stuff. (A takeTwo console (for exemple) that could only play games but that would have tons of exclusives would sell more, I'm sure).

Anyway, my guess: X360 will win (and I say that sadly since I own a ps3) and the ps3's fate will depend on square-enix. Not because final fantasy games sell that well (85% of the sales are in japan... so not a lot sales in us) but because it's japanese devs that makes all teh games (but some like GTA and god of war for exemple), so more japanese happy ps3 fans means more happy japanese devs, making games for ps3.

At least it's my guess. lol

ps: Sorry for the loong and boring post.


   Re: na2rul - 2008-03-11
 » xbox is still missing something

£40 wifi adaptor.

   Re: na2rul - 2008-03-11
 » *

£60 pound wifi adaptor
   by Tapp - 2008-03-12
 » :)

I dont know why people continue to argue over which console is best if you like the playstation brand and trust sony you'll buy a PS3 if you like xbox and trust the microsoft brand you'll buy a 360.
The argument should be over value for money, the 360 is a rip off with all its add ons and the live membership costs i had one and buy the time i had it up to speed to what i wanted it to do for me it cost me near enough £500 £50 more than the PS3 of the time and if i'd kept it i would have brought a hd dvd player another waste of money and would now be worried how much Sony will make MS pay for a Bluray add on and how much that will cost me.
If you havent brought a console yet my advice is if you like casual gaming buy a Wii if you like real gaming buy a PS3 unless you have endless buckets of money to keep spending on your 360 as MS struggle to keep up with the industry.



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