Sony Lowers Price of PS4 In Advance of Holiday Season

Today, October 8th, Sony has announced that as of tomorrow, October 9th, the Playstation 4 will be available at a discounted price in North America.  How big of a drop is it?  How do you like $50?

Yep, that’s right.  The PS4 will be available starting tomorrow at $349.99 ($429.99 in Canada). However, that’s not all.  In advance of the holiday season, they have also dropped the prices of their big bundles (see below courtesy of PS4 blog).

UNCHARTED: The Nathan Drake Collection PS4 Bundle (10/9) $399.99 USD / $449.99 CAD $349.99 USD / $429.99 CAD
Limited Edition Call of Duty: Black Ops III 1TB PS4 Bundle (11/6) $449.99 USD / $549.99 CAD $429.99 USD / $499.99 CAD
Limited Edition Disney Infinity 3.0: Star Wars PS4 Bundle (11/13) $449.99 USD / $549.99 CAD $399.99 USD / $469.99 CAD
Limited Edition Star Wars Battlefront PS4 Bundle (11/17) $449.99 USD / $549.99 CAD $399.99 USD / $469.99 CAD
Star Wars Battlefront PS4 Bundle (11/17) $399.99 USD / $449.99 CAD $349.99 USD / $429.99 CAD
NHL 16 PS4 Bundle
(Available now, Canada only)
$449.99 CAD $429.99 CAD

This is big news for new gamers who don’t have a PS4 or just want a special edition bundle!  Me, personally, can’t afford any of this at the moment but I can live vicariously through all of you!

The bigger question remains, “Why?”.  Why on Earth would Sony lower the cost of its 2 year old console?  

Let’s take a look at a couple of ideas. 

1.  Perhaps, Microsoft is also planning a price drop for the XBOX One for the holiday season and Sony is beating them to the punch?  Most Sony fans would believe that Sony doesn’t need to worry about Microsoft because they have the highest grossing console in the world, to date.  Humor me for a moment, though.  It makes sense because despite what Sony has done, Microsoft has still been gaining some momentum.  They arguably won E3 with their backwards compatibility, Tomb Raider Exclusive, Halo 5, customizable controller, VR Previews, and the Rare 30th Anniversary game. XBOX One isn’t as unappealing as it once was when it first came out.  All Sony did at E3 was announce games that were for next year, nothing really for today.  Sony could be doing anything in their power to halt that momentum by beating them to a price drop just before the holiday season. The only way we’ll know for sure on that is if Microsoft were to offer a price drop of their own, say $51?

2.  This price drop could be a way to introduce a new bundle featuring their new Playstation VR.  By no means am I saying that this would be released this year.  I don’t believe it’s ready.  However, a good marketing strategy would be to drop the price of the console now, get people buying the console at a lower price, and then release a new technology set at say $100-200 and people will flock to buy it.  You may say, “Matt, you’re terrible at math.” to which I’d say, “Yeah, but consider this.  If you were to buy a console at a $50 dollar discount you’d essentially be only 25-50% away from the Playstation VR.  Then, by the time next year comes around, that money will have saved up to get to the price Playstation is setting it up to be.”  At least those are just my thoughts on it.  Maybe the bundle price will go back up to $399.99 upon the release of the Playstation VR.

Whatever the reason is, a $50 price drop for one of the best systems I’ve ever had, is quite the bargain.  It also sets up perfectly for the holiday war to begin.  Who wins?  Who cares?  We win!  Let the games begin!

What do you think of the price drop?