I love the term “competitive pricing strategy”. It’s a lovely way to say that not enough people were buying the game, so we lowered the price. The new price makes a great deal more sense than the original $US50 price tag, especially for a game that has players purchasing in-game cards for real-world money.

$US29.99 is a pretty good deal for the game, though I get the feeling that eventually this is one of those titles that will be available for next to nothing, relying solely on card purchases to generate revenue.

An article in the Wall Street Journal today considers the state of Sony’s PlayStation 3 in the video game market, highlighting the fact that the console’s holiday sales had dropped considerably over last year’s.

Citing NPD numbers as well as industry analysts, the article points out that November sales for the PS3 had dropped 19% from November 2007, with December sales expected to be either flat or lower that the year previous, indicating that Sony’s target of 10 million consoles sold during the fiscal year might well be unattainable. The article also notes that rival Nintendo doubled sales from the previous November, with Xbox 360 sales seeing an 8% rise.

The article offers a rather gloomy outlook for Sony as a whole. The recession has not only stopped folks from buying pricey electronics like televisions and digital cameras, it has made them more cost-conscious when it comes to which game consoles they are buying.

One of the PlayStation 3’s key non-gaming selling points – the inexpensive Blu-ray player – has been rendered moot, as the market sees stand-alone players that run for $200. Between that fact and the downturn in the economy, Sony’s strategy for the PS3 seems to be backfiring. It isn’t that it wasn’t a sound strategy – it’s just that the economy suddenly became hostile to high prices.

So the price is the main problem right now, but cutting prices would push the company even more into the red. It’s a catch 22 that must weigh heavily on the bosses over at Sony. Cut prices for greater losses in the hope that it will generate enough sales to compensate for the difference. Greater sales equals a larger install base which equals more PlayStation 3 exclusives to keep the fans happy.

Here’s hoping Sony can pull out of the dive it’s taking financially and reach the heights of success it’s lovely black console deserves.

Hope Fades for PS3 as a Comeback Player [Wall Street Journal]

Some retailers are reportedly showing 100% increases in sales of all Xbox models with up to six times more sales between Friday September 5th – Sunday 7th compared to the previous weekend.

Granted, these are Microsoft’s figures, so they may have been given a bit of a spit and polish — still, Sony & Nintendo must be eying the holiday end of the calendar and doing a bit of chin stroking right about now.

Full text of corporate gloating after the jump…

Subject: Media Alert: Xbox 360 console sales surge post-price drop

Coming off the heels of the console price drop last week, Microsoft Xbox 360 sales have surged, with retailers reporting over 100% sales lift for all Xbox 360 models compared to the previous weekend. Additionally, retailers are reporting that between Friday, Sept. 5 and Sunday, Sept. 7, some Xbox 360 models were selling at six times the rate they were the weekend prior.

At $US 199, Xbox 360 is now not only the most affordable next-generation console available, but it also packs more entertainment punch per dollar than any other consumer electronics device connected to your TV. Xbox 360 invites you into a limitless world where the best games, movies and TV shows live side by side with your personal pictures and music library, and the experience is ready to share anytime with friends in your living room or across the globe through Xbox LIVE.

As if the British economy wasn’t looking dark enough – now we face another Christmas of not-that-cheap Xboxes.

“Pricing is handled on a region-by-region basis”, said a killjoy Microsoft spokesperson, “We do not have a price drop in this region to announce”.

An Xbox Arcade will set you back £159.99 ($US 281.35) in the UK, while an Elite can be obtained on the open market in exchange for a kidney or other major organ.

Microsoft says no Xbox 360 “price drop” in the UK [Pocket Lint]

Was it disappointing that the console price cuts leaked before you could announce it?
“It was disappointing. Very unfortunate.”

That was your only big announcement today.
“That was one of our big announcements.”

Oh yeah? … Are there any surprises in store at next month’s Tokyo Game Show?
“Well, you’ll have to wait and see.”

Microsoft Japan to cut price of Xbox 360 console by 30 pct – report [Forbes]