With the E3 Media and Business Summit going on (the annual trade show for the computer and video games industry), there have been several big announcements from Sony and Microsoft.
The first big announcement coming from Sony is that they have decided to drop the price of their 80GB PS3 model to $400. This will start in September which would make the 80GB model the same price as what the 40GB model currently sells for. Engadget points out how Sony worded it. They talked about how the new 80GB model would have the “current functionality” of the 40GB model which means it looks as though the days of backwards compatibility for PlayStation 3 are gone. In a nutshell, Sony is boosting storage while keeping the same price point.
It looks like Microsoft is trying to do the same type of thing – boosting storage while keeping the price the same. Microsoft recently dropped the price of their 20GB Xbox 360 from $350 down to $300. As it turns out, this is just temporarily as a way to make room because Microsoft intends to introduce a new 60GB model for $350 which is the same price as what the 20GB previously sold for. Maybe these companies would have been better off simply dropping the prices without upping storage? We have to agree with a comment Paul Thurrott made. He says, “Microsoft is losing ground to Sony now, for crying out loud. It’s time to get aggressive.”
Also in the news is that Microsoft and Netflix have teamed up to allow Xbox 360 owners the opportunity to stream Netflix movies to their consoles (assuming they are Netflix subscribers). Now if Netflix could improve the list of movies available to watch instantly, and open this up to non-U.S. residents, there would be a lot of happy campers.