WeasteDevil
New Member
Now that we have the release in the UK this week of the £300 40Gb PS3 without backwards compatibility and the drop in price of the 60Gb PS3 with backwards compatibility and with 2 games for £350, are Microsoft going to respond by lowering their prices as well, or simply try to ride the Halo phenomina wave until after Christmas? Comparing the RRPs of the XB360 to the PS3 now, it looks like a seriously poor value box.
NB. Sites such as Play.com are not being used here, as that is retailer competition by improving their supply lines, cutting their margins, or including bundled extras. Only RRP is used here as stated by the manufacturers.
NB. 40GB PS3 does not include a memory card reader or memory card, so in comparison to the XB360 Core with a Hard Disk unit, you have to cut £23 from the stated prices. Without a hard disk unit, cut £70. One or the other is required for online play.
NB. XB360 Elite is supplied with a 120Gb HDD. Therefore, to bring the PS3 up to the same specification, £38 approx would have to be added to the PS3 prices, making them £338 and £388 respectively.
Lets look at the three base models and their RRPs:
XB360 Core - £180
£250 £070 - No Hard Disk (20 Gb Optional)
£310 £060 - No WiFi (Optional Unit Available)
£333 £023 - No Online Play (Needs Memory Card 64Mb if no Hard Disk)
£438 £115 - No HD-DVD Player (Optional Extra)
£468 £030 - No Rechargeable Batteries for Controller (Optional Extra)
£508 £040 - XBox Live (Need Ongoing Yearly Subscription)
£508 £338 - Total For Approx PS3 Specification
£338 RRP in accessories required to bring it up to what PS3 has out of the box.
XB360 (Also known as Premium) - £250
£310 £060 - No WiFi (Optional Unit Available)
£425 £115 - No HD-DVD Player (Optional Extra)
£455 £030 - No Rechargeable Batteries for Controller (Optional Extra)
£495 £040 - XBox Live (Need Ongoing Yearly Subscription)
£495 £245 - Total For Approx PS3 Specification
£245 RRP in accessories required to bring it up to what PS3 has out of the box.
XB360 Elite - £300
£360 £060 - No WiFi (Optional Unit Available)
£475 £115 - No HD-DVD Player (Optional Extra)
£505 £030 - No Rechargeable Batteries for Controller (Optional Extra)
£545 £040 - XBox Live (Need Ongoing Yearly Subscription)
£545 £245 - Total For Approx PS3 Specification
£245 RRP in accessories required to bring it up to what PS3 has out of the box.
Comparison
Conclusion
As can be seen, whichever configuration is chosen, when upgrading the essentials of the XB360 system (even when taking the HD-DVD out of the equation), all XB360 models are more expensive than all PS3 models by a similar amount. It's quite obvious that on a hardware level, Microsoft's current pricing strategy is weak and offers very little value.
This returns us to the original question. What are Microsoft likely to do?
A) Ride the Halo wave hoping that it in itself is going to sell systems.
B) Make and immediate price cut of £80 at the very least.
I think that they will try to take road A.
I hope the maths are right. Feel free to correct them if otherwise.![Wink ;) ;)](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
NB. Sites such as Play.com are not being used here, as that is retailer competition by improving their supply lines, cutting their margins, or including bundled extras. Only RRP is used here as stated by the manufacturers.
NB. 40GB PS3 does not include a memory card reader or memory card, so in comparison to the XB360 Core with a Hard Disk unit, you have to cut £23 from the stated prices. Without a hard disk unit, cut £70. One or the other is required for online play.
NB. XB360 Elite is supplied with a 120Gb HDD. Therefore, to bring the PS3 up to the same specification, £38 approx would have to be added to the PS3 prices, making them £338 and £388 respectively.
Lets look at the three base models and their RRPs:
XB360 Core - £180
£250 £070 - No Hard Disk (20 Gb Optional)
£310 £060 - No WiFi (Optional Unit Available)
£333 £023 - No Online Play (Needs Memory Card 64Mb if no Hard Disk)
£438 £115 - No HD-DVD Player (Optional Extra)
£468 £030 - No Rechargeable Batteries for Controller (Optional Extra)
£508 £040 - XBox Live (Need Ongoing Yearly Subscription)
£508 £338 - Total For Approx PS3 Specification
£338 RRP in accessories required to bring it up to what PS3 has out of the box.
XB360 (Also known as Premium) - £250
£310 £060 - No WiFi (Optional Unit Available)
£425 £115 - No HD-DVD Player (Optional Extra)
£455 £030 - No Rechargeable Batteries for Controller (Optional Extra)
£495 £040 - XBox Live (Need Ongoing Yearly Subscription)
£495 £245 - Total For Approx PS3 Specification
£245 RRP in accessories required to bring it up to what PS3 has out of the box.
XB360 Elite - £300
£360 £060 - No WiFi (Optional Unit Available)
£475 £115 - No HD-DVD Player (Optional Extra)
£505 £030 - No Rechargeable Batteries for Controller (Optional Extra)
£545 £040 - XBox Live (Need Ongoing Yearly Subscription)
£545 £245 - Total For Approx PS3 Specification
£245 RRP in accessories required to bring it up to what PS3 has out of the box.
Comparison
Code:
PS3= PS3-40 DIFF PS3-60 DIFF
XB360C £508 £300 £208 £350 £158
NHDDVD N/A £300 £93 £350 £43
XB360P £495 £300 £195 £350 £145
NHDDVD N/A £300 £80 £350 £30
XB360E £545 £338 £207 £388 £157
NHDDVD N/A £338 £92 £388 £42
Conclusion
As can be seen, whichever configuration is chosen, when upgrading the essentials of the XB360 system (even when taking the HD-DVD out of the equation), all XB360 models are more expensive than all PS3 models by a similar amount. It's quite obvious that on a hardware level, Microsoft's current pricing strategy is weak and offers very little value.
This returns us to the original question. What are Microsoft likely to do?
A) Ride the Halo wave hoping that it in itself is going to sell systems.
B) Make and immediate price cut of £80 at the very least.
I think that they will try to take road A.
I hope the maths are right. Feel free to correct them if otherwise.