PlayStation 3's high price may allow Microsoft to raise the price of the Xbox 360.
Yes he's mental, and yes he's brilliant, but this time, Ken Kutaragi, president of Sony Computer Entertainment Inc and 'Father of PlayStation' may have let one slip that's played straight into the hands of his most bitter of rivals: Microsoft.
Over the last few months, Kutaragi-san has been talking up the PS3 like it's the end of gaming history itself; a console fit for Kings. But he's also been warning that he'll be charging royal prices for his baby and that gamers are just going to have to work longer hours if they can't afford it. Cue smiling Xbox executives, gleefully rubbing their hands together while dollar signs flash before their eyes.
Because now, of course, they can up the price of the Xbox 360. Most recent unconfirmed reports suggest that the 360 will be priced around £299 when it's launched in Europe just before Christmas. Why so high? Because Kutaragi-san has been letting the world know in advance they'll have to re-mortgage their homes to afford a PS3. Even at £299, the 360 will be cheaper than the PS3, if Kutaragi is to be believed.
With every single yen Kutaragi slaps on the PS3, Mr Gates can add a dollar to his bulging bank account. Microsoft may well be prepared to price the 360 at between £200 and £250 and take a hit on profits in an effort to maximise installed base before the PS3 comes out, but why should they? The price divide is a terribly important thing. If consumers see the 360 £100 cheaper than the PS3, they're less inclined to think bargain, and more inclined to think inferior product. Ergo, as the PS3 price rises, so must the 360.
So Mr Gates can sit back and relax (in an extremely comfortable chair no doubt), arms casually cast behind his head, and afford himself a rare smile. 'Carry on Kutaragi-san', he thinks. 'I'm all ears.'
This article is taken from our regular Sunday Supplement feature.
