Friday, May 12, 2006

Peter Moore Questions the PS3

Peter Moore, leader of Microsoft's Xbox 360 division, has spoken out against Sony's offerings with the PS3, claiming that among other things it is overpriced for what it is.

Speaking at E3, Moore said there is not enough seperating the Xbox 360 and the PS3 to justify the difference in price. The Xbox 360 is priced at $299 and $399 for the standard and premium bundles respectively, while the PS3 is priced at $499 for the 20GB HDD bundle and $599 for the 60GB HDD bundle.

He also called into question Sony's move of making Blu-Ray standard in all PS3's, "Xbox 360 isn't forcing hi-def DVD playback on you, and telling you that it's going to cost you an extra $200-$300 dollars." Instead of making the Microsoft backed high defintition DVD format, HD-DVD, standard on all Xbox 360's, Microsoft are releasing an external player add-on, which is expected in time for the holiday season at an estimated price of $199.

Moore also had more to say on the price of the PS3, regardless of what DVD format was included, responding as follows when asked if the PS3 was overpriced: "Go ask consumers. That's where I get my feedback from. I'm very comfortable about our price point for what it delivers, the number of games it has, and the quality of those games. Consumers are going to have to see PlayStation 3 games and ask, 'can I see $300 of difference in those games.' I'm not sure that's the case right now. Sony has some challenges in answering that question."

Finally, he wondered whether Sony will be able to withstand the costs in the final stages of the PS3's lifetime, by which time manufacturers are expected to be able to make the consoles very cheaply compared to their initial introduction, "The problem for Sony isn't this year. This year they're going to sell what they can deliver. The problem comes two years down the road when you have to catch up with a cost reduction curve when your competition is already there."

Via: CVG

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