Apparently price is not an option
Since the Xbox is now priced lower than the Wii, this leaves Sony in a very expensive position. They are currently the most expensive next gen console on the market by failing to break the $300 mark. From their statement they still feel that they can generate enough sales to push forward.
Some people may say that this is not a good idea. No one will buy a more expensive console blah blah blah and so on. But on the other hand this shows a focus for the electronics giant. The Wii suceeded in a market which the Xbox and the Playstation didn’t fully serve, the casual market. Apparently there are that many casual gamers out there to warrant that it’s been almost 3 years since the Wii launched and there still isn’t enough to go around.
What the Xbox is now trying to do is get that casual market by lowering the prices of their console to make it more attractive and including “Mii” like avatars even though they’re not cute. Microsoft however is risking lowering their profits by going this route and possibly stretching their wings a little bit too far.
This strategy worked for the PS2 which still has a ton of games. Can the Xbox make this generation work? The failure rate of the Xbox is very disheartening. I know for a fact since I’ve gone through3 consoles myself in the past three years. This is not very encouraging.
Whatever happens, it’s the consumer who will profit. Despite earning warnings for practically every industry except for the oil, I think gaming will still have a very good year.