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Sony slashes PS2 price, Xbox makes pre-emptive strike News

PlayStation 2 Xbox News by Rob Fahey

18 August, 2004

PlayStation 2 and Xbox are set for European price cuts in the coming days, with Sony to cut its price to £104.99 effective immediately. Microsoft announced a pre-emptive drop in the price of Xbox to £99.99 price this afternoon.

Although announced first, in a move designed to spoil the effect of Sony's cut to some extent, the Microsoft price drop will not take effect across Europe until August 27th.

The announcement of Microsoft's price drop was made this afternoon at 3pm CET (2pm GMT) at the Leipzig games Convention. Sony's announcement was made at 4.30pm CET from the same event.

Retailers will hope to see a significant sales boost for both consoles from the price cuts, much as was experienced by US retail back in June when Microsoft, and then Sony, slashed the price of their consoles within the space of a month of each other.

In the UK, the PS2 has continued to outsell the Xbox by a factor of between 2:1 and 2.8:1 over the course of the summer, with the Xbox shifting around 5,000 units per week while the PS2 hovered between 8,000 and 14,000 units.

Update 14:18 - Microsoft confirms price drop.

Update 15:33 - Sony confirms price drop.

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Comments: 1-50 of 135 in total | next 50 »

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Jos
18/08/04 @ 12:37
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Cool

[Edit - Not my best post...]
Edited 1 times, most recently on 18/08/04 @ 13:38
rauper [staff]
18/08/04 @ 12:39
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Ooh. *Buys an Xbox*
Zero Beat
18/08/04 @ 12:39
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£105? That's just stupid, but great! I might actually be able to replace my launch console sometime in the near future.
pjmaybe
18/08/04 @ 12:40
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Christ by now the thing should easily be sub 100 quid...

Peej
Beano
18/08/04 @ 12:42
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What's the current price for PS2 and Xbox in the UK ?
fxgogo
18/08/04 @ 12:42
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£99 for an xbox would get me hooked for sure.
Dizzy
18/08/04 @ 12:44
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Why are people still buying a PS2????

Ha.. yes I know Blerk.. Disgaea ;)
cheap
18/08/04 @ 12:45
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still cheaper in the states...both consoles are 149.99 USD, converts to 82.12 UKP

capitalism at its finest eh? ;-)
Tweakmonkey
18/08/04 @ 12:45
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Mass market saturation he we go...
Whizzo
18/08/04 @ 12:45
#10
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The weird £105 price tag is probably due to a Euro/Pound conversion. I bet the retailers just round down to £99.99 to make it more consumer friendly.
Whizzo
18/08/04 @ 12:46
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still cheaper in the states...both consoles are 149.99 USD, converts to 82.12 UKP

Someone is forgetting sales tax isn't included in the price in the US states that have it while the UK price will be including VAT @ 17.5%.
C13
18/08/04 @ 12:47
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I think £100 is a psychological mark...

It must be...

But why did Sony labeled the PS2 then with such a stupid price as £105???

Is the £6 really gonna make that of a difference for their bookkeeper?

It will make a difference in the sellings, that's for sure...
read_only
18/08/04 @ 12:48
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Cool. Second console for me soon then. I think which one I go for will be down to how good reviews of Fable are, most other XBox stuff doesn't interest me that much.
krudster [mod]
18/08/04 @ 12:49
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I think the retailer trade price will be the same for both consoles. I fully expect most retailers will cut the PS2 to £99 anyway, or offer a game bundle for £109.99.
cheap
18/08/04 @ 12:51
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Someone is forgetting sales tax isn't included in the price in the US states that have it while the UK price will be including VAT @ 17.5%.

ok, lemme do a little math here...with 6% sales tax (in my state), both consoles come to 158.99 USD, which converts to 87.03 UKP...still cheaper, no?

/edit...got the math wrong at first :/
Edited 3 times, most recently on 18/08/04 @ 13:52
pauleyc
18/08/04 @ 12:52
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At this price the Xbox looks surely even more attractive. Correct me please if I'm wrong but that would be the price of a bare console, without any bundled game?

Oh, the new "Breaking News" feature and logo is just *brilliant*!
Decoded
18/08/04 @ 12:53
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I still find it amazing that the PS2 is still shifting up to 14,000 units a week. Are people buying them for their pets?
C13
18/08/04 @ 12:53
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Pffiew, i wished the VAT/sales tax was that low in Belgium too...

For both Xbox and PS2 it's 21% on a price of €199 (console+game+one or two controllers) or €149 (console+controller)...

That would make some difference...
Dizzy
18/08/04 @ 12:54
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>Oh, the new "Breaking News" feature and logo is just *brilliant*!

Agreed.... but a bit sexual no?
MBar
18/08/04 @ 12:54
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probably buy a ps2 for myself when gta san adreas comes out, but not before. still need to play ffx.
mcmonkeyplc
18/08/04 @ 12:54
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Now that PES is due out on the xbox soon their really is no point in me re- purchasing a PS2 apart for maybe MGS3 or GTA:SA which im sure will make their way to the xbox eventually just like their predecessors.

£105 is still too much for the PS2 considering a memory card still sets you back at least 15 smackers.


C13
18/08/04 @ 12:55
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I guess they are using PS2's as tapistery (is that spelled correctly?)...

Since now you have black, blue and silver... would make nice colour scheme...

Now it's waiting for the final RED edition...
Whizzo
18/08/04 @ 12:56
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Someone is doing the wrong calculation.

Remove the 17.5% VAT from the UK's £105 price tag and you get £86.63, the PS2 is virtually the same price in both countries, after the price cut, plus you get a full 12 months warranty included in the price too.
cheap
18/08/04 @ 12:58
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but don't you have to pay the VAT?

if you do, the after tax net price is cheaper in the states...
Edited 1 times, most recently on 18/08/04 @ 13:59
cheap
18/08/04 @ 13:03
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OHHHHHHHHHHHHHHHHHHHHHHH

i get it now, they're the same base price, your government just takes the hell outta you. sorry bout that :P
C13
18/08/04 @ 13:05
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Well our government are the biggest thieves then, that's for sure... Djeez... 21%...
Homer Simpson
18/08/04 @ 13:09
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I just think PS2 should be cheaper than Xbox at this age, especially because Xbox is a better machine.
Shinji [mod]
18/08/04 @ 13:14
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The market is driven by supply and demand though. There's twice as much demand for PS2, so why make it cheaper than Xbox and waste all that luverly revenue?
mash the x button
18/08/04 @ 13:15
#29
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Any news on the gamecube? I'll have one for £49.99 with RE4 and a few other goodies thrown in...
Whizzo
18/08/04 @ 13:17
#30
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but don't you have to pay the VAT?
Yes you do.

if you do, the after tax net price is cheaper in the states...
Then that's a difference in tax rates rather than the pre-tax price, Sony or Microsoft can't do anything about taxation!

VAT is Satan's own tax; you get taxed when you earn your money then when you spend it the government takes money again!
ssuellid
18/08/04 @ 13:21
#31
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£104.99 does seem to a be a very weird price point. Not the sort of number the retailers usually use. Maybe the customers will think the PS2 is a premium product because of the extra £5?
Killerbee
18/08/04 @ 13:22
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Nope, I'm still not convinced to buy an Xbox.

Always good to see prices falling, but tbh I thought Nintendo's announcement of their Christmas software line-up was more exciting.
Tweakmonkey
18/08/04 @ 13:24
#33
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"I just think PS2 should be cheaper than Xbox at this age, especially because Xbox is a better machine"

Well according to this article, Sony made the PS2 cheaper than the Xbox, but then Microsoft responded by making theirs cheaper. See?
Serraphin
18/08/04 @ 13:25
#34
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Have the other 2. Was considering the PS2 for disgaea, transformers et al.

Even more enticing now, hopefully Riddick, HL2, Halo2 will ward of a PS2 purchase... especially with PES now peeping on the X-BOX horizon.
Thamuhacha
18/08/04 @ 13:31
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Xbox. Fable. Jade Empire. Kotor. Kotor 2.

Months of RPG fun for close to £250? Nice.
Blerk
18/08/04 @ 13:32
#36
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Sony to cut its price to UKP 104.99

Bizarre number! Anyway... 'bout time there were some more price cuts.

Why are people still buying a PS2????
Ha.. yes I know Blerk.. Disgaea ;)


If only that was true!
disc
18/08/04 @ 13:34
#37
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speaking of prices :)

any place selling disgaea for less than £30 ?
Blerk
18/08/04 @ 13:39
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Whizzo
18/08/04 @ 13:43
#39
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No, VAT is designed to encourage certain purchasing trends or saving. Other countries just tax you more on your earnings.

I'm not sure any government should be telling me what to spend my money on and considering how few VAT exempt things there are I'm at a loss to work out what they're encouraging, more buying of food, kids clothes and books?

Also your saving are taxed as income and other countries VAT rates are higher as well with different exemptions, how exactly that's anything than revenue generation I'm stumped.
sickpuppysoftware
18/08/04 @ 13:43
#40
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OHHHHHHHHHHHHHHHHHHHHHHH

i get it now, they're the same base price, your government just takes the hell outta you. sorry bout that :P

Wait until you see how much they tax our petrol by!
Sko
18/08/04 @ 13:46
#41
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99quid for an Xbox? How much extra are MS gonna be losing per machine now?
Roarer
18/08/04 @ 14:04
#42
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Nooooooo! I just bought my Xbox two weeks ago for £139 and now they announce this. I knew it! This has happened to me three times in a row now (I remember buying my PS1 at the original retail price, and then they lowered it exactly TWO days afterwards. Grrrr).

Anyway, will the £100 Xbox come bundled with any games?
Schwabing
18/08/04 @ 14:05
#43
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they should bundle Doom3 with an X-Box and say something like:

'only a quarter of the cost of upgrading your PC for D3!'

in 2006 or whenever it actually comes out...
Rusta
18/08/04 @ 14:09
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£99 for a PC at that spec you could not buy.

Add £100 for chip and hard disk and you have a £200 excellent media centre.......

WriterUK
18/08/04 @ 14:22
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WTF is that picture up there? Is it really too hard to get a picture of a PS2, maybe next to an Xbox? :)

Fire the art department!!
Roarer
18/08/04 @ 14:34
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Rhythm: Thanks for the tip! I don't think we have Barclay cards (or anything similar) in Sweden though...

My Xbox came bundled with PGR2 and Top Spin though, and if the price cut is for a vanilla system, well, the difference will be pretty insignificant.

[Edit: Sewden is a mighty fine country, famous for it's fine garments and skilled seamstresses]
Edited 1 times, most recently on 18/08/04 @ 15:36
lost_soul
18/08/04 @ 14:39
#47
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Hmmmm let me think. £140 for Doom 3 and an Xbox or £1000 upgrade to run it on my PC...

Are you buying your PC upgrades from Dixons?
disc
18/08/04 @ 14:42
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roarer... of course we do... just a creditcard...
Roarer
18/08/04 @ 14:48
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Oh - I'm a bit clueless when it comes to things like that. Still, not sure if it'd be worth the hassle of getting a new card (there's always problems involved with things like that. Always.)
rauper [staff]
18/08/04 @ 14:54
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"Update 14:18 - Microsoft confirms price drop."

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