Speaking in light of NPD hardware sales for February, simExchange analyst Jesse Divnich observes that the PlayStation 3 is gaining “considerable ground” on the Xbox 360, suggesting Microsoft needs to cut the price of its console in order counter the Sony surge.
Divnich commented, “Whether there is an Xbox 360 shortage or not, it is clear that the PS3 has gained considerable ground on its rival."
"Given these past two months and the momentum that the PS3 has gained, Microsoft must react quickly as the PS3's momentum will only get stronger until Microsoft reacts."
Indeed, in order to counter the spike in PS3 sales, Divnich notes that Microsoft must follow similar measures recently undertaken in Europe; namely, a price cut for the Xbox 360 in North America.
"In the short-term, Microsoft's only feasible and economical option is to look at reducing its hardware price in North America to at least slow down the PS3's momentum until it can implement more long-term solutions to winning the next-generation console war."
Evidently, Sony’s fortunes so far this year look to be on the rise, and with the release of several high profile titles on the horizon, including Metal Gear Solid 4, this auspicious trend looks set to continue throughout 2008.

2008 will belong to the PS3 im sure. With some great games coming and having a built in Blu-ray player how can it fail.
I think 2008 will be more of a turning point than a so-called massive financial year for the PS3. When we enter 2009, I think the PS3 will have gained a very substantial amount of momentum and the expected price cut at fall will help lift the PS3 much further up than it is now. Depending on what Microsoft and Nintendo are able to do this year, the less the better for the PlayStation. If Nintendo manage to keep their machine in the limelight for the 2008 holiday season it will undoubtedly affect the PS3's numbers negatively. People often say they're competing in different sections of the market, but truthfully they're working with the same developers .. and there are certainly many Wii owners right now who would have a PS2 last gen. Their install base isn't all brand new. The DS has probably done more for opening up the gaming market to traditional 'non-gamers' but the Wii is definitely taking numbers away from Sony. If the Nintendo hype machine stays alive and well into next year it's bad news for the Playstation brand, handheld & home console.
Yeah 2008 will be for PS3. The only good game coming for xbox 360 this year is gears 2 and if it makes it Fable 2.
This news is soooooo obvious.
how can microsoft do better when the ps3 is seeing price drop's whilst 360 are being returned suffering pink-eye, who want's a console that is garantied to let you down and that only provides you with technology obselete?
xbox gets 1 big game a year while we're gonna get 3-4 this year alone.
obvious




I'm starting to hear of people wanting a PS3 just because it's pretty much the cheapest BluRay player on the market. Is mine obvioius too?
Sony already said they will drop price again as soon as the costs come down a bit more. So we could even see two price drops this year- possibly disguised as SKU reshuffling.
And if Sony cuts the PS3's price by $100, MS is screwed for sure.
psn id: gingo.... well its really upto microsoft to do something becasue the ps3 will continue to grow throughout this year and increase sales dramatically
The PS3 is for sure going to own. People have now realized that the money they spend on gaming should be worth it. The 360 is a waste of money and time. To many dissapointed customers = no more customers. Great news for sony fans everywhere.
is anyone else seein billy_bob_joes posts? why the pictures!?
Hmmm. This is a tough one. If Microsoft cuts the price of the Xbox 360 in America, Sony will almost have no choice but to drop the price on the PS3 also, but it doesn't have to be as a substantial price drop as Microsoft's... maybe a $30-$50 dollar price cut on the PS3, but that's it. Sony doesn't have to try to match the 360's price because it most likely never will unless Sony wants to take a lot of losses on PS3 sales.
Sony has already stated that they want to make money off of PS3 sales this year, so that means that a price drop would be a small one most likely, especially if the price drop comes before the holiday season.
What I just can't understand is the amount of people still buying Xbox 360's even after knowing about it's VERY high failure rate... I mean, I would never ever buy something that was as unreliable as the Xbox 360 even if there was a 3 year warranty for it. However, when that 3 year warranty runs out on the Xbox 360, Xbox 360 owners will have to drop $100+ dollars per repair and that can add up quickly... and that's probably another reason why Microsoft will pull the plug on the 360 when the new Xbox console comes out because Microsoft doesn't want to be repairing the large amount Xbox 360's forever.
Yes, the PS3 has gained some ground on the 360, and if people think that the PS3 has gained some ground, they haven't seen anything yet because the PS3's biggest games haven't even came out yet. When June comes rolling around and then later on this year in the Fall, then you will see the PS3 closing in the sales gap. I expect that by the end of this year, the PS3 will be within 2-4 million consoles of outselling the Xbox 360. And then by the middle of 2009 or by the end of 2009, I expect that the PS3 will have outsold the Xbox 360.
The PS3 and 360 will be within 1 million units by the end of 08.
Oh god. So many delusional people here. 1 good game a year. You should come out of the closet. And even if the 360 has 1 good game come out a year. The PS3 is still waiting for its first good game. And I am praying that metal gear is the game that it is supposed to be. If not Sony will be in a world of hurt.
I can't believe that with one year lead the 360 doesn't THAT much of sells c'mon that is too still be on first place even after d wiii''prove that the 360 sux!'' ps3 s sales came out short at the de vu of the psr at nov 06 and came a year after the 360 and it looks like alredy the ps3 is going to win to the 360 this year or at early 09 can't be;ieve it! good work sony!( i believe that if bluray didn't won out the format wars) =goodbye for PS3 =( but it's still ok! so we''ll win!
"CONSIDERABLE GROUND"??!!! HA! That is too funny... the PS3 sold 25,400 more consoles than 360 did in the month of February out of hundreds of thousands of consoles, and this is considered "CONSIDERABLE GROUND". Ha! Too funny!! Yes I have no doubt that the PS3 will indeed outsell the 360 from time to time, but ever catch up?? NO! Not with Gears 2 and Mass Effect 2 being exclusive as well as the Halo series and... oh yeah Bioshock! :-)
A price cut won't help when all the big named AAA titles exclusives are mainly on the PS3
Ninja Gaiden 2, Fable 2, Too Human, Lost Planet 2, Halo Wars. And the dance goes on and on. The only great game for the PS3 was Resistance and that is already mostly forgotten. Everything else had potential for the PS3 but they flopped.
Look romantic, I am not going to throw numbers at you as to why the PS3's good games are flops cause I am too lazy too. The reality is that is sony needs to out sell the 360 by more than 30k more units to get back into this race. And if MGS4 and Grand Tourismo move consoles then Sony better have a plan "D".
Demobot, I cannot begin to say how biased you sound right now. Microsoft has those games-exclusive only because gaming companies such as Team Ninja didn't have the common sense to realize they're supporting a system that will most likely fail. How in the world can you assume PS3's exclusives will be flops when some of them aren't out yet? Stop living in a world of denial-the PS3 will win this war. They're moving at a steady pace, only because they don't want to rush their stuff out of the market.
And the ONLY thing, if I had a 360 that worked well (considering the poor souls who had the RROD of destruction) the only game I would want is Ninja Gaiden II because I love Ninja Gaiden Sigma since it was a near perfect port of Black.
So what your saying is that Resistance and Warhawk Drakes fortune and the like are commercial sucesses for Sony. Please. wasn't lair supposed to be some sort of killer app. What happened there? The only reasons to get a PS3 would be GT5 and MGS4. GoW is on that list too but thats comming out in 09.
And as far as team Ninja is concerned, who they support is their business. That is like saying Konami is retarded for not making MGS4 for a console that has a much larger fanbase.
Will the PS3 fail. Not really. It will have a long life as a great DVD player. However, as far as games go, lets just not go there.
Okay Demobot, whatever you say. That's your narrow-minded opinion. But you will be proven wrong during 2008-2009 sooner or later.