GAME MAKERS EXPECT NO CHANGE IN PS2 SOFTWARE PRICING: Even as rumors continued that Sony Computer Entertainment America (SCEA) was planning Electronic Entertainment Expo (E3) announcement in May of PlayStation 2 (PS2) price cut to $199, 3rd party publishing community was taking comfort in fact that there seemed to be little movement to drop frontline PS2 software pricing below current $49.95. Sales executive of major 3rd party publisher told us: I think $49 is going to hold. I don't see us dropping to $44 and so the next drop is to $39 and we're not seeing any pressure for that. Source said that, in fact, only software price pressure apparent in entire game industry was for Game Boy Advance _title_s. Game Boy Advance _title_s won't be over $29, and that means at $23-$24 wholesale there's not a lot of margin. But you can't be at $39 anymore for Game Boy Advance _title_s because they're not selling, source said. Marketing executive of another publisher said there was some concern that SCEA's announcement of Greatest Hits lineup of $25-priced top-selling PS 2 games (CED Feb 27 p3) was too early in platform's life cycle. But he said: Most people thought that, if anything, it takes the pressure off lowering the price point for frontline [_title_s]. Marketing executive said he was hearing SCEA was beginning to squeeze supply of PS2 hardware into retail channel in anticipation of hardware price drop. SCEA didn't return calls for comment on current supply of PS2 in retail channel by our Mon. deadline. As history and other regions have shown, hardware price cuts can have profound effect on market. Capcom Entertainment Pres. Bill Gardner told us: The big thing that helped PS2 blow through the doors in Europe was [Sony's] price cut. There was kind of [stagnation] over there back in September and [it seemed hardware sales] had really flattened out. Right before Christmas [Sony] dropped their price and everything went through the roof. No one is saying Microsoft Xbox and Nintendo GameCube are appealing to anyone but early adopters right now. Surprising thing is that 5 months into their respective launches, no one seems to know which one of these 2 systems is going to emerge as number 2 behind Sony. The jury's still out, Gardner said, and both systems seem to be nearing 2 million mark in N. America: We've got product for both of them, so obviously we want both of them to do well. Another executive told us: Both of them [Nintendo and Microsoft] are doing well but not great. If you ask retailers, some say Xbox [is doing better], some say GameCube and some say they have no idea. Executive joked: I think it will be decided by a hanging chad. However, one thing 3rd party community appears certain of is that online console gaming will have little impact on market this year. While SCEA announced Aug. launch of $39.99 PS2 modem accessory (CED March 8 p5) and Microsoft said it was planning 2nd half rollout of network to allow Internet game play on Xbox, sources told us no one expected that to amount to anything in 2002. It's all going to be pushed back, sales executive predicted, We have a game for Xbox that would be great for online play, but we're assuming it's all going to be in 2003. I still don't think either one of them [Sony or Microsoft] will have the online gaming thing figured out.

However, one thing 3rd party community appears certain of is that online console gaming will have little impact on market this year. While SCEA announced Aug. launch of $39.99 PS2 modem accessory (CED March 8 p5) and Microsoft said it was planning 2nd half rollout of network to allow Internet game play on Xbox, sources told us no one expected that to amount to anything in 2002. It's all going to be pushed back, sales executive predicted, We have a game for Xbox that would be great for online play, but we're assuming it's all going to be in 2003. I still don't think either one of them [Sony or Microsoft] will have the online gaming thing figured out. I think Online is gonna get pushed back enough, that it won't mean much for these round of machines. It'll take an X-Box 2 before online is worth paying for. Of course this is just my opinion flounda - Hide quoted text -- Show quoted text -

Great point Surprising thing is that 5 months into their respective launches, no one seems to know which one of these 2 systems is going to emerge as number 2 Did Xboxers and Gamecubers hear that. you are fighting for SECOND PLACE ..PERIOD. behind Sony. in the 16 bit days, when there was a much smaller market, Nintendo entered the 16 bit race a full...what? 2 to 3 years behind the Sega Genesis, and at the end of the console war Nintendo had sold more systems, and had made more profit overall. 1 year does not guarantee a winner, no matter how much you want it to be true.