
ZDnets John Carroll:
To my mind, though, a Microsoft that is first to the price reduction punch is a nightmare scenario for Sony. Though Nintendo might be the current sales leader (trumping both PS3 and XBOX monthly sales), from a competitive standpoint, XBOX 360 is more the direct competitor (at least outside Japan). Both target hard core gamers, and both offer more performance and graphics capability than the lower-cost Nintendo Wii.
An even lower cost XBOX 360 with a larger selection of games and larger installed base is a situation to which Sony will not be able to respond. Sony is limited in how much it can reduce the price of the PS3. They might try, but the higher cost of the PS3 (partly driven by the costs of the mandatory integrated BluRay player) limits their maneuverability. Sony's PlayStation group has been laying people off, and though PS2 still sells well, that isn't sustainable long-term.

A brutal reset, a smarter story, and a return to what made it great—Mortal Kombat (2011) revived the series.
15 years went by so fast. I remember playing through the story mode at launch.

Why did Sony push Shuhei Yoshida out of his role leading PlayStation's first-party games? He'd overseen some huge successes. Well, apparently, he didn't listen.
Yeah I can see that for sure. Shuhei Yoshida should have been in charge not Jim Ryan.
More confirmation that Jim Ryan is the culprit for what has happened to Sony. Hulst needs to go too. What sucks is that a lot of the good top heads at Sony are no longer there. I wish that guys that were forced out prematurely by Dumbo Jimbo like Shuhei and Layden came back.
Makes you wonder if MS even thought about hiring him after Phil and Sarah were leaving. He certainly couldn't make their situation any worse.
All the gamer/consumer lead heads are gone across PS and Xbox. shuhei gone phil's gone (questionable) but gone. The future of gaming is somewhat uncertain across the board.
Former Naughty Dog artist Gabriel Betancourt explains why the "sweet spot" for game teams is under 200 people and how AAA "factories" kill creativity.
There’s definitely some truth to this. When teams get too large, coordination starts to outweigh creativity—layers of approval, risk aversion, and tight deadlines can turn bold ideas into “safe” ones. Keeping a team under ~200 people sounds ideal for maintaining clear communication and a shared vision. That said, massive AAA projects also come with huge technical demands and expectations, so scaling up isn’t always avoidable. The real challenge is figuring out how to keep that small-team creativity alive inside big studio structures.
I just noticed it says this at the bottom of the article "John Carroll has delivered his opinion on ZDNet since the last millennium. Since May 2005, he's been a Microsoft employee."
My opinion is if Microsoft did drop its prices Sony would probably be forced to do the same pretty soon which if that happens lower prices for all us gamers would be a great thing so in the end we win!
Yea consumers would win, M$ would most likely win, Sony would end up eating madd $$$$$. They'd be forced to drop their price, when they didn't want to, with no titles still out.
If M$ wanted to kill Sony I think they could right now. Just by dropping the price. Sure they'd eat a lot of losses, but wouldn't it be worth it for them to win this thing?
Do they really have to price drop first?.
Right now 360 is beating PS3. So i think there is no reason to lower its price. Untill the PS3 sales pick up when that happends which the real question is "When" i feel MS will drop the price to make it even harder for those increasing PS3 sales to increase. Games make the console but 1 or 2 games isn't going to sale 10million copies.
another article by MS chatterbox