Microsoft dismisses PlayStation 2 price cut

"The future lies in the growth of current generation consoles," says Euro exec Chris Lewis

Microsoft has shrugged off any suggestions of increased competition from Sony after it announced a price cut today for the nine year-old PlayStation 2 console.

Sony has dropped the price of the console stalwart to EUR 99 and USD 99 in North America, with SCEA's Jack Tretton suggesting the move "will bring in new consumers who will discover how PlayStation platforms are an outstanding choice for their gaming and home entertainment needs."

However, Microsoft dismissed the price cut, stating that the future is about the growth of current generation consoles, not older technology.

"This move from Sony at the end of the PS2’s life cycle is not unexpected," Chris Lewis, VP of the Interactive Entertainment Business for Microsoft, told

"We believe, however, that the future lies in the growth of current generation consoles and Xbox 360, as the fastest growing games console last year, with sales up over 80 per cent, will continue to drive the market.

"Xbox 360 has clearly demonstrated that the combination of the right price, blockbuster games as well as the market-leading broad connected entertainment content available through Xbox Live will continue to resonate with the ever growing needs of today’s consumers," added Lewis.

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Latest comments (5)

Rupert Loman Founder & CEO, Gamer Network13 years ago
He's right... but it barely needs saying - the price cut changes nothing.
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Alex Wright-Manning Head of Recruitment, Splash Damage Ltd13 years ago
Once again Sony prove themselves a little out of touch. 99 unfortunately equates to nigh on 99 these days, and when the next generation console from Microsoft comes in at around 130 what do you think the average consumer will plump for? To me this sounds like Sony shifting excess stock - do we even know if they are actively manufacturing the PS2 any more? Sorry if this is a little UK-centric!

Edited 1 times. Last edit by Alex Wright-Manning on 31st March 2009 5:32pm

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Chris O'Regan Director and Co-Founder, Silver Hound Productions13 years ago
Whilst I sympathise with Mr Loman's comment above, I can't help but consider the fact that not only is the PS2 cheaper than Xbox 360 Arcade units but it has a lot more games, all of which are very cheap when compared to the '360. Those on a budget will look favourably to the PS2 over the Arcade system for this reason.
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.13 years ago
The PS2 has been cheaper than the X360 Arcade SKU since that models introduction. A price cut won't waver many in the decision process at this point. Those shopping between an X360 and a PS2 have likely already decided regardless of price.

Specifically in the US where the PS2 was $129 and the X360 Arcade is $199. A drop to $99 by the PS2 is not really biting into the market territory of the X360 arcade anymore than it already was at $129.

In Europe sans-UK, the Arcade SKU retails for 179.99 which puts it similarly in the same pricing scenario as the US.

In the UK the Arcade retails for 129.99 and the PS2 is not getting a price reduction making the issue a moot point there.

My point is that if you're already significantly cheaper than than the competition, dropping your price a few bucks isn't going to win over many would be X360 owners. I agree that this sounds more like a stock clearance move especially when you consider that PS2 sales are down ~50% year on year.

Edited 1 times. Last edit by Jim Webb on 5th April 2009 4:05pm

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Chris Hunter-Brown IT / Games specialist, BBFC13 years ago
My reading of this was that it's more for the US market where the $99 price point is a barrier to some. Didn't the GBA have a decent uplift once it got to the same price?

Like Jimmy says, I think it's a moot point with regard to Microsoft's Arcade SKU.
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