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PlayStation UK Boss says Price Wars ‘can be Dangerous’

by Kyle Hanson


Sony made major headlines, and some would say secured their victory for the eighth generation of consoles, by announcing that the PlayStation 4 would launch at $399, a full $100 cheaper than the Xbox One. However, while the Xbox One has had its price lowered to the point that it’s base model is now $50 than the PS4, the latter has remained staunchly set at its original price. Rumors pop up every now and then pointing to a possible price drop, but nothing concrete has developed just yet. And if the words of PlayStation’s UK boss Fergal Gara are anything to go by, things might stay that way.

In an interview with MCV, Gara was asked about the current price difference between the two consoles, responding that price wars aren’t good for anyone. “Any price war in any sector in any market can be dangerous,” says Gara. “If there is a race to zero, who wins from that? We are proud that we managed to launch at a very competitive price, and demand has held up very strongly for PS4. Therefore, our RRP (recommended retail price) on day one is our RRP today. Yes, there are promotions that offer consumers better value from time-to-time, but it’s great that we managed to start at such a great price and it has held well.”

Of course, many would argue that while the companies that manufacture and sell games and gaming consoles don’t benefit from a price war, the consumer does. We can already see the benefits of the initial price war that kicked off this generation, with the Xbox One dropping Kinect as a required accessory, and lowering its price significantly. If the PS4 responds we could see lowered prices across the board, saving gamers a lot of money in the long run.

- This article was updated on:March 8th, 2018

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