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July 9, 2007

Sony Cuts PS3 Price, Microsoft Fixes Dead XBoxes

After denying a price cut up to the moment they announced it, Sony has reduced the price of the PS3 by one hundred dollars in North America.  Analysts expect the move to spur what are now sluggish sales of the game console.  Sales lag behind the XBox and the Nintendo Wii, which outsells both of them.  The PS3 is already sold below manufacturing cost thanks to its advanced design and Blu-Ray DVD drive.

Microsoft has its own hands full with failing XBox units.  When three circular lights on the console panel light up together, the unit has failed.  There seems to be a lot of them with that affliction because Microsoft may take a charge of a billion dollars or more to set things right with XBox owners.  Aside from doing the right thing, the company has committed itself to making the XBox the entertainment center in the living room.  That's something it couldn't do with its Media Edition PCs and likely the home server it announced earlier this year.  The latter product is meant to link computer based pictures and videos to the television set.  The Apple TV, product, with all of its limitations, seems an easier and less expensive way to do this.  The market, though, will ultimately sort this out.

July 9, 2007 | Permalink

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