Seems like Sony is backtracking on the PS3 pricing now — at least in Japan — due to many consumer complaints. The Wii has been looking more and more like the sweetheart deal. This price decrease will probably push Sony over the one billion dollar loss mark, as they reported earlier projections that they would lose $900 million.

Washington Post:

Sony will cut the price of its basic PlayStation 3 model in Japan to 47,600 yen ($410), from an originally planned 59,800 yen ($515). That puts the PlayStation 3 in the same range as the combined basic Xbox 360 and HD DVD player in Japan, where the duo will sell for 49,600 yen ($427).

Personally, I don’t care how much money Sony loses on the PS3 launch, I’m stoked that the price decrease might come across the ocean to the US launch as well. So far, it is only a Japan price drop but they’d be crazy not to extend the deal to the US too. They already shafted their homeland by cutting the number of PS3 units available at launch, so this seems like their apology.

Darkmoon thinks the RPGs will be where the PS3 keeps its edge:

Sony has always offered the same gaming style that the Japanese adore. RPGs and adventure type gaming that have fantastic storylines and an interactive movie like quality. Square Enix is definitely a next-gen console RPG leader and will not leave Sony’s side and hasn’t since the PS1 inception.

Hard to argue against that one, Microsoft has had almost no success in Japan, although they did announce some Japan-exclusive titles are coming for the Xbox Live Arcade which might help. Also, Namco Bandai announced in 2007 they will be offering an RPG for the 360 called Eternal Sonata.

Despite the amount of negativity swirling around Sony I don’t think they have to worry about dropping to #3 in the video game console race. The Wii risks being seen too gimmicky with their remote-like controller and Nintendo already is branded as a mostly kiddie machine, even though they do have some good adult titles. The PS3 could be #2 though, which I think has their egos cracking.

Microsoft maybe their own worst enemy
Microsoft may stay #2 by shooting itself in the foot with the numerous hardware problems. We just had the replacement 360 Microsoft sent us go bad. That will be two Xbox 360 replacements in less than six months. The other 360 hasn’t broken down … yet. Microsoft has extended the warranty to one year on all Xbox 360 produced before January 1, 2006.

Nathan has already had one of his 360 go bad too which he hasn’t had long either. I respectfully disagree with Nathan’s warranty opinion:

The real lesson: If you buy a $400 game console and don’t get an extended warranty, you are an idiot.

We’ve bought probably 20 game consoles and handhelds over the years (didn’t count but the list includes: NES, SNES [multiple], N64, PS1 [multiple], 3DO, Neo-Geo, Gameboy, Gameboy Advance, Sega Master System, Sega CD, Sega 32x, Sega Saturn, Dreamcast, Turbografix-16, Xavix, Nintendo DS [multiple], PS1, PS2 [multiple], Atari Jaguar, Xbox [multiple], Xbox 360, etc) and never before have we bought a warranty on any of them including the really expensive ones like the 3DO and Neo-Geo which was a mail order item (both $700). Never needed one. We bought an Atari 5200 and Coleco on eBay with games and both of those still work all these years later.

Prior to the Xbox 360 the only machine we’ve ever had to replace was the PS2 and that was from massive gameplay and it was going on almost three years old. Either we’ve been really lucky idiots, Nathan, or maybe smart In fairness, he did specify “$400 game systems” of which there have been fewer of those pushing that pricepoint over the years.

Still, add up $60 bucks a pop for all those system warranties and see how much money we would have blown on never used warranties (we might have used one in the PS2 case perhaps). Game consoles nor computers should need warranties to make it three years. Not even six months for a console is shoddy, shameful engineering. We rarely buy extended warranties for anything below $500. Under any other circumstances I’d be willing to gamble $400 for three years vs. a $60 warranty (15%).

But not in Microsoft’s case.

We will probably breakdown and buy an extended warranty for both our Xbox 360 systems (if we still can) just because we only have until November for these to keep breaking in warranty. $60 is well worth an additional two years considering how often the 360s are breaking down not only for others but in our own household. Shameful Microsoft. Shameful.

• Gametrailers ranks the top 10 videogame systems of all time
• Xbox 360 three year warranty page
• PS2 outsells Xbox 360, Wii and PS3 in March 2007
• The local retail search for the Xbox 360 Elite begins
• Sony having PS3 production problems, might not make shipment goals
• Another Xbox 360 bites the dust tonight, 5 bad systems in less than 2 years and counting