
Microsoft resembles a certain other green giant right now: you wouldn’t like it when it’s angry. While the Xbox One has been doing reasonably well over the past year, it’s been outpaced heavily by the PlayStation 4 around the globe – and that’s put the American company on the back foot. It’s not immensely surprising to see Sony on top in nations such as Germany and Spain, as the platform holder has always been popular in continental Europe, but the firm has also been battering its Redmond-based rival in the USA and UK, scoring nine consecutive NPD victories in a row.
It was always going to be difficult for the Japanese giant to continue that success through November – after all, its competitor appears to have positioned all of its heavy hitters into that one month. However, it now not only has to contend with co-marketing partnerships for Assassin’s Creed: Unity, Call of Duty: Advanced Warfare, and a little game called Halo: Master Chief Collection – but it will also have to bat aside yet another price drop, which will see the Xbox One “temporarily” reduced to $349.99 in the United States until 3rd January. There’ll be a few soggy brows around SCEA today.
Perhaps the most impressive thing about this move is that it includes bundles, too: you’ll be able to get the console alongside two Assassin’s Creed titles for the abovementioned sum, for example, while the limited edition Call of Duty: Advanced Warfare unit will sell for a much more attractive $449.99. Even more incredible is that this doesn’t factor in potential Black Friday promotions, which could, in theory, see the system drop to $299.99 or lower – an amazing turnaround considering that the console launched at $499.99 less than a year ago.

In many ways, Sony should feel satisfied that its strategy has strong-armed Microsoft into this position in the first place – but it also puts the manufacturer in a precarious position. The firm has just enjoyed one of the strongest September sales periods of all time in the USA, and consequentially, its momentum is good moving into the holidays – but it can’t afford to give its competitor an inch if it wants to maintain its lead, certainly in North America. However, with the Japanese giant’s numbers not in need of an artificial injection, what should it do?
It’s clear that the Xbox maker has been counting down to Christmas in order to hit its competitor with every piece of ammunition in its arsenal. Phil Spencer, in fact, hinted as much in an interview with Game Informer magazine. “They beat us in June. They beat us in May,” he said of the console climate at the time. “I think that the whole month of June is about one week in November. They're winning, and they'll do their PR around it, and that makes sense. The battle is really September, October, November, and December.”

With the Xbox One getting tidily beaten in September – and October likely to go to Sony, too – it would seem that the battle for the Xbox chief and his team very much rests on November and December now. Sony, on the other hand, tends to take a wider view, which can even be evidenced in its software lineup. Indeed, the company may not have the strongest roster of holiday exclusives this year, but it will pick up any slack in February with the release of both Bloodborne and The Order: 1886.
But can it afford to roll over for a couple of months – especially given that they’re the most important of the year? There are already plenty of armchair analysts declaring that Sony doesn’t have the funds to counter this last-minute measure from Microsoft, but we don’t necessarily agree with that line of thought. The firm’s bank balance isn’t particularly healthy, but the manufacturer has said on several occasions that it designed its next-gen device around prompt price cuts, and while it hasn’t had to lean on them yet, we know that the console isn’t losing money like the PlayStation 3.
The question, then, is not necessarily whether it can react – but whether it thinks that it needs to. Regardless of the price of competing consoles, it’s highly unlikely that the PS4 will suddenly stop selling this Christmas, so the Japanese giant should expect a stellar holiday irrespective of this aggressive move. However, up until this point, it’s enjoyed much of its success from being both the cheapest box on the market, but also the ideal upgrade path for existing Xbox 360 and PS3 owners. This move could stunt its momentum a little in that regard.

Given that it's also the holiday, it won’t have time to take stock of the situation before making a response, so it’ll need to decide what it’s going to do about this fairly fast. As such, if we were in charge of the company, we’d react with some kind of promotion of our own. Given the success of the PS4, a price drop doesn’t seem to make the most sense – but the platform holder could certainly pack its bog-standard hardware option with added value. Why not, for example, throw in downloadable copies of Killzone: Shadow Fall, Knack, and Resogun as standard?
It’s an interesting dilemma, because in the span of ten million units, the Japanese giant has gone from having the cheapest next-gen console on the market to the most expensive. It’s been very much facing this issue in the UK for several months, though, and its response has been to allow retailers to keep price matching the Xbox One – without ever really announcing it’s doing so. As a result, you can now get a PS4 for around £299.99 if you shop around, which is a good £50 or so cheaper than it’s supposed to sell for in these parts.
The market is different overseas, though, so it’ll be very interesting to see what Sony does about this. Of course, while the two electronics giants duke it out, there’s only ever going to be one winner in this war: the consumer. Indeed, it looks like you’ll be able to pick up a new console for an absolute song this Christmas. Who could possibly complain about that?
What do you think that Sony should do to counter this aggressive measure from Microsoft? Given its success, should it stick with its current price point – or should it match the Redmond-based firm, and not give it an inch? Plot out your sales strategy in the comments section below.
Do you think Sony should respond with a PS4 price drop of its own? (88 votes)
- Yes, it needs to if it wants to stay in front
- Hmm, I don’t really care
- No, the system’s selling very well as it is
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Comments 57
Having the PSN be consistent and reliable would be a start, I'm telling my friends that haven't got a next gen console yet to get an XB1 if they play online often because it's significantly less likely to have issues..
@Jonny Yeah, the 'PSN problems' argument is overblown in my opinion. Does it go down for an hour here or there where it shouldn't? Absolutely. Could Sony do better in this regard? I'm not a network engineer, but probably. Is it honestly a major deal? Considering how limited and isolated the problems are, not really.
I'm not saying it couldn't be better, but yeah, people act like it's down for several hours everyday, which just isn't true.
I'll admit the "issue" is overblown to a point with it's accompanying memes but I can count at least 3 days since release when me and my friends couldn't get on Destiny when we wanted to, a drop in the ocean in comparison to the wider scale of things maybe but even then it's still unacceptable for me if I'm paying for PS+.
Not to mention the maintenance window often being during peak gaming time in the UK, but we haven't had one of those in a while thankfully.
I think they have to do something if not a price cut like throw in free digital games (additional to the already bundled ones) or a free year of plus
@Jonny I do agree with everything you're saying, however, the only other thing I'd counter is that maintenance gets overblown a lot, too. A lot of publcations report that PSN goes 'offline' during those periods, but it actually doesn't, and you can usually play online.
Anyway, I do agree, and the PSN thing maybe deserves a separate discussion at some point...
I think the real problem is the fact the Xbox One has/is getting quite a few great AAA games in before the holiday season whereas Sony are currently floundering and letting disasters like Driveclub happen.
@Get2sammyb
To be honest I'd like to see MS get a few hits in, if only because competition is healthy for everyone. At the very least it'd make Sony up their game.
Wowzers! Another MS price cut? How many has that been already, I've lost count?
I'm not sure if Sony should follow suit but they should certainly keep a close eye on if the Xbone picks up and be ready to react with their own price cut if needed... Right now though I don't think they need price cut of their own...
Time for sony to go for the knockout in my humble opinion. Drop it to 299.99$ through jan first, then 349$ regular. Heres a scary thought though. Could MS strategy be to strong arm sony out of the race by price drops, throwing its $$ at exclusives, and just in general using its cash to dominate the ecosystem? I seem to remember a similar fate happening to the dreamcast. Its my biggest fear, and a day that would surely send me back to my keyboard and mouse, but its something ive always got in the back of my head
The people that go out and buy consoles en masse in November and December aren't your typical gamers. Where we know all about hardware differences, services that both offer and upcoming releases, your typical black Friday moms know what they see advertised and knows that saving $50 nets you a game, perfume or a robot dog or something. It's all about the price of your console and the bundles your offering. Microsoft is doing an excellent job on making Xbox the most attracrive console for this holiday season. Last year I bought a ps4 because the xbox wasn't priced competitively, if I had to make the choice this holiday season i'd go for the One because of the price, but also because of what they are offering in terms of games. Sony might be a step ahead in sales, but I don't see them giving the ko punch this year....which they could do. They should market the SharePlay and remote play really aggressively, throw in some vita or ps tv bundles and most of all: make the ps4 $299 for the remainder of this year, just in the States. If they offer clean bundles like that they will make enough money with the sale of extra games and controllers, but people will go mad over that price. $299 is a deal which is too good to pass on and the only way to counter the MS big guns.
@get2sammyb Man that was such a good article, looking at all the facts and taking a thoughtful approach rather than just emotional stuff but then this -
"However, up until this point, it’s enjoyed much of its success from being both the cheapest box on the market,"
Uh, hello, Wii U? The system that has console exclusives Bayonetta 2 and Super Smash Bros U this holiday (and Captain Toad in the US) compared to the PS4's DriveClub, Have you seen the Wii U - PS4 - X1 sales numbers in Japan the past few months?
I'm not saying Wii U sales will catch PS4, but you talk about people shopping for the holidays in Nov and Dec and talk about PS4 being the lowest but there will be people who see Wii U - $299, X1 - $349, PS4 - $399 - so I don't think you can completely ignore Wii U. Not w/ MK8 in the box, SSBU coming out, Bayonetta 2 just released, and those adorable Wii U only (until next year) amiibo. I think PS4 will certainly lose a sale or 2 to Wii U this holiday (based on how things currently stand), especially in Japan when they start getting the MK8 bundle in 3 weeks.
OK, Wii U aside, the other problem which I think is bigger than the X1 price drop is Sunset Overdirve. It's an exclusive game that really looks like it should be on the PS4. Its a fun looking inFamous in blazing color and it's made by insomniac. And I keep seeing the bundle on tv every 5 minutes. I honestly don't recall seeing a $349 price but that white X1 w/ that game for $349 would be a nice enticement for potential PS4 purchasers. And Scalebound is coming. Devil May Monster Hunt? Monster Hunter Cries? All I know is Dante is fighting some cool kaiju wearing a Guyver suit in a game made by Platinum, so it's probably not a "hidden object" game.
So what should Sony do? I don't know, b/c I don't know what their projections are. If they think the X1 price cut and the Wii U finally getting some good games 2 years after release may hamper it's sales, then yes match MS' price cut. If they think LBP3, DriveClub, Destiny and AC:U will help them sell enough consoles at the current price then keep the price. I also don't know what they are losing per console ATM, but the company as a whole is a mess. So I think they should match the MS price, but only if they think they need too and it won't bankrupt the company.
I dont think they should permanently drop the price of the PS4 if its bad for business
But they should just temporarily match the XBoxOne price drop until December 31.
@Jonny Xb network go down just as much. and it usally only go down once every 3 down for maintenance
xb getting desperate
@Fred_Red
Yes but Sony is getting complacent
@Rjejr
As much as I love my Wii U and think it's got some fantastic games the casual and underpowered perception of it means I can't see it ever being a viable threat to PS4/XB1 regardless of cost. I'd love to be wrong though.
@DualWielding Are they?
Why would Sony bundle older games while Microsoft is gonna bundle all the new BIG games, I have both systems, but if I didn't have either one I would go with the newer bigger games, and I think most people would also
@Jonny Wii U may not be a "threat", viable or otherwise, but I still think this holiday there will be a few people who buy a Wii U, which means they won't be buying a PS4. And Wii U is cheaper, which was my main point, otherwise I wouldn't care.
In Japan the Wii U has outsold the PS4 many weeks over the past 6 months and has about triple it's total - 2mil to 700k. It does have an 18 month head start, but I don't think you can fairly say the Wii U is irrelevant in Japan. I do think X1 is irrelevant in Japan and no amount of price cuts will make it relevant there. Wii U could be in play this holiday if Nintendo does something crazy like start to advertise SSBU and the upcoming amibo, neither of which I have seen any sign of in any store in the US. I have no hope for Captain Toad ever being marketed anywhere to anyone even though it looks like a fun little $40 game. It was never going to sell any Wi U anyway.
I think SOny is doing just fine and this is just another desperation attempt by MS to get more XB1 sales. For Sony to copy them would be a mistake. If anything I think they should bundle a few games with the PS4 maybe like Knack and Resogun something like that.
Personally I wouldn't buy an Xbox One even if it were free. I'm a Sony and Nintendo gamer and no temporary price drop is going to change that over night. Microsoft can lower the price all they want. Microsoft's exclusive titles have never appealed to me and besides those IPs pretty much everything comes to both Microsoft and Sony consoles anyways. Yes, DriveClub has been an absolute disaster, but I know in the long run that the PS4 is going to have the gaming library that I actually care about and want to play. All the Xbox fanboys can enjoy Halo 5, 6, and 7 this generation, along with their Call of Duty maps a week early. Whoopty doo.
I always say price is important. Say a family walks into shop(or shops online) & sees the cheaper console at Xmas they will more likely buy that 1. Maybe SONY should do the same price as MS do over Xmas. In the long run them doing that & getting more sales will make them more money in years to come from those Xmas sales. So yeah do it SONY go in for the KILL
I don't own either system (have a PS3 and a Wii U), but if I were to buy a system this holiday it would be an Xbox One because of the games (upcoming) and the price.
@Ryno Love your avatar:

Sony needs a kick in the a$$. The first party games have been entirely mediocre and everybody can keep brushing it off like it doesn't matter but if XBL were as piss-poor as the now paid-for PSN has been lately you'd be making fun of it constantly.
That said, a price cut by Sony right now would be a stupid reactionary move. Until the Xbox One shows it can outsell PS4, Sony doesn't have to do sh*t. It easily has the worst holiday lineup but it also has the most hype and $400 is not an outrageous price point. Personally I'm hoping both MS an Nintendo give the PS4 a good, old fashioned butt kicking like was happening a lot last gen to get the sleeping giant to wake up but I don't see it. Sony's kicked the hype machine up to 11 like it did in the PS2 days, it was money very well spent when switching advertising firms.
When Sony aren't employing the $599-PR disaster-arrogant-nextgenstartswhenwesayso method their home consoles usually sell this well. But for some reason people seem to assume Sony are getting complacent? Gen nots over yet folks, less than year? Please.
All they have to do is put loads of PS4 shelves in time for the holiday season, sit back and tell all their studios to stop working on the non games they're working on. That's it. That's what they did to combat Nintendo's Mario Kart 8 and SSB U and MS Titanfall to Diskinected to 180s. It's that simple.
@get2sammyb Sony studios aren't developing a thing and you can't prove it!
@rjejr To be fair, Sammy never mentioned Nintendo in this race. Unfortunately Nintendo don't factor in the console warz as much.
Just bundle it with something. I don' care if they drop its price, I recently got my PS4 with free Destiny so I'm happy Got the PS4 just as its starting to shine...so I don't think Sony is in any trouble.
Though I presume it isn't a good thing for Nintendo of America...since its a 50 bucks price difference with Wii U and its the xbox's homeland. (though xbox only/mostly caters to frustrated teens and adults, not adults, teens and kids like Nintendo.)
ok this comment doesn't make any sense. sorry! :3
@Punished_Boss_84
Well, the sales battle is over, even if MS or Nintendo get a few wins here and there, unless Sony were to go completely under, PS4 should win this generation and pretty handily. One thing I'll give Sony, it at least knows how to sell a home console, sadly its the complete opposite in the case of handhelds but whatever.
Unfortunately though the entire first year has been getting through the crap first parties have to offer. It's frustrating. On the one hand, thankfully the DriveClubs, the Knacks, the Killzones are out of the way, and Bloodborne should be a good start for 2015, even if not my kind of game, I'd think 4-6 mil, maybe more if advertised correctly, will enjoy it. After Bloodborne it's a long wait until Uncharted but I'll give Sony the benefit of the doubt that it has something, hopefully from Bend. Syphon Filter PS4 needs to happen. Also looking forward to Polyphony pulling back the curtain on GT 7, 2015 would be as good a time as any.
There's reason to be optimistic about the future, unfortunately the present is kind of meh.
@Punished_Boss_84 - If Sony is complacent Wii U could become a factor though. (If Nitnedo ever decided to make the slightest effort to market the Wii U and it's games.)
It was a Sony exec who said "it's a marathon, not a sprint" regarding the Vita's long term success. How's that working out for them?
http://www.kotaku.com.au/2012/10/sony-ps-vita-success-is-a-marathon-not-a-sprint/
Wii U may be a distant 3rd (not even sure how distant compared to X1) but it's closer than Vita is to 3DS so I wouldn't completely count it out just yet. It's been neck and neck in Japan since summer, and I don't see PS4 pulling away there until... well I'm not sure when.
@rjejr
Japan isn't going to make up for North America though, and the NA market is vastly different from Japan. The third party games that matter here? Nintendo fails pretty spectacularly in that category. It also fails, as you've pointed out, in advertising. The Wii U does have the best exclusives, but you don't hear a single word about them. I don't know what Reggie and his team do all day.
@Gamer83
Sure.
@rjejr
Wii U wouldn't be a factor even if Sony is/are getting complacent, that's what third parties are there for.
As for the forgotten stepchild - PS Vita <<<<<<<<<< They can't achieve success if they don't work for it. Nintendo's performance in the console market is like Sony's performance in the handheld market, the difference is one is stronger than the other.
@Gamer83 - "I don't know what Reggie and his team do all day."
Reggie sleeps all day. There is no team. That's the only way I can explain it.
I realize the lack of 3rd party software is the Wii U's deathknell, nail in the coffin, what have you - can't triumph w/o FIFA, Madden and COD - but they really should be able to at least be in the conversation based upon:
1. Exclusives - Hyrule Warriors, Bayonetta 2, Mario Kart 8. Super Smash Bros U, Captain Toad (ok that last one isn't helping much, but coupled w/ amiibo they could be targeting kids)
2. lowest price, even w/ the MS price cut
3. backwards compatibility w/ the entire Wii catalog
Exclusives, price, BC vs. lack of multiplats, that should be easy to market, it's 3 pros vs 1 con. That's what marketing is, spin, and that should be easy to spin.
Oh course they have to price drop as well. if not match, at least reduce the distance. Even though they are selling well, PS4 preference will not cope with that parity and the biggest selling factor for the PS4 in the US is that it is the biggest selling console. Momentum. Losing that to MS for the holidays would be madness. They MUST compete on price! That was one of the PS4s winning factors in the beginning. They cannot give it up.
@rjejr The thing is, as great as I think the Wii U is, you can't really factor it into this discussion because its hardware is not on the same level as the PS4 or XBO. It's a bit like saying the Amazon Fire TV is actually the cheapest next-gen console...
I should have worded what I meant better, though.
@get2sammyb U wot m8? That is not how we define a gen or a console war, true Wii U isn't as strong as the PS4 or Xbox One but its games stack up just as well.
@get2sammyb You're treading on some mighty thin ice there.
@Jazzer94 I never said it didn't! Words are getting put into my mouth here!
@get2sammyb I don't think that WiiU sales will ever impact the other consoles just because most non casual console gamers that buy a WiiU will also get a PS4 or Xbox One. So even if the WiiU sells great this Christmas it won't really be at the expense of the other consoles.
@rjejr
LOL, I've come to that same conclusion regarding Reggie. I actually wouldn't be surprised if what you posted isn't far from the truth. It really seems like he does nothing. He shows up at the tradeshows, does a quick interview then you hear nothing from him or anybody else at NoA for months.
@get2sammyb But it is still a relevant factor for both consoles, tides and momentum change constantly we have no idea if PS4 will keep up this pace.
I agree with the idea of just throwing in some first party games and advertising the new share play, and how you need to own the same console as your friends that have already bought one.
Let Microsoft be desperate. If a problem with moving units come then do something. Losing money just to stay in front is a fools errand. If sonys system is as superior as we all think it to be it shouldn't have a problem even being $50 more. The victory will be sweeter if it stays at $400 and still cleans house. I highly doubt $50 less than ps4 is enough to bring back the people it severely pissed off back at e3 with the policies they tried to steam roll people with and how they treated people.
@get2sammyb - Sorry to get you into trouble w/ the whole board - dont mess w/ the Falcon Punch - but Wii U is part of this gen like it or not. And dont let power fool you, unless PS3 has caught up to Wii sales numbers. (hint - it hasn't). Wii dominatec last gen w/ a toy SD system. Wii U may not have the specs, but its still in the race.
Ok lets put it this way - you are constantly covering X1s every move - do you really think X1 is selling that much better than Wii U globally (total sales to date)? If X1 is a sales competitor, then so is Wii U. Its that simple.
I'm still hoping that the PS4 will be $300 New during Black Friday, even if it's just the console, instead of a bundle.
How is dropping the price of an item to stay competitive desperate. I mean if we want to talk desperate on a wider scale let's talk about how Sony seems to be teetering the edge of going under.
Above all else, bring us great games. The rest will fall into place.
Sony have the opportunity to make a statement like they did at E3 and at Launch last year ,one of the best advantage that Sony have right now is that MS already make his move , you now know were your competition stands and that's is HUGE, that allows you to counter in the best way possible ......In my opinion they need to make a move , if it were up to me I will match MS price just for the Holidays ......like ( BOOM) THAT WOULD BE A BOLD MOVE FROM SONY ........LIKE SAYING BRINGING ON ( that alone will crush MS), or make some good bundles lets face it MS bundles right now are sweet.... custom 1T COD console , Assassins Creed with 3 games and Sunset Overdrive bundle/white console .......PS4 bundles on the other side are plain nothing special ( just Destiny) they need to throw something give us 1 year free PSN or free games .... my point being SONY have to make a move , MS put it easy now its time to take action .
PS: I do apologize for any grammatical mistake done English is not my native language
thanks for the consideration.
@get2sammyb It definitely feels like Sony is becoming complacent. Their holiday lineup has zero exclusive big releases, the Drive Club ps+ edition debacle continues with no explanation. Worse yet, I don't think anyone actually believes that the dozen holiday releases that were pushed into the first quarter 2015 are actually going to release first quarter. More likely bloodborne, the witcher and the order are the 2015 holiday lineup.
@Ps4all
I could see Bloodborne getting pushed into June maybe, but I can't see The Witcher 3 or The Order getting pushed into holiday next year. If anything maybe April or May at the latest.
@Gamer83 I hope you are right, but that is exactly what has happened the last few years. The crew and driveclub were supposed to be out first quarter this year.
I reckon a TLOU remastered special edition (special look console with download of the game, at standard price) would get a pretty big reaction out of a lot of gamers. But what to do for the parents who decide for their children...about 3 games thrown in at standard would probably be the best bet.
@Ps4all dont think sony needs to do anything drastic. people know sony exclusives are the best games around and when they start rolling out from next febuary itl sell even more consoles.next year is going to be very very ezciting for playstation owners
@Ps4all
That's true. I wouldn't be surprised if The Order, Bloodborne or both slipped out of the February, March window but I don't think they'll get pushed back until after June either.
No argument there, that's why I love Sony. Just seems like a waste of a holiday season this year with no first party games. I finally get to play GTA V in the best possible way tho.
PlayStation Experience Event in Dec is Sony's answer. I'm looking forward to be hyped.
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