Xbox, PlayStation Prices Like a Tax on Fun

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Upgrading to a next generation game console is looking to be an expensive endeavor, working not unlike a tax on the non-industrious. With Microsoft leveraging a supply and demand advantage for the holiday season and Sony just trying to pay for its state-of-the-art-ness, Nintendo’s Revolution may turn out to be a cost-effective compromise.

Speculation is running high about the cost of the new systems, with Microsoft expected to lead the rumble pack. The Xbox is projected to run at or in excess of $400. Part of this reflects the costs of producing a 3-processor, multi-function entertainment hub.

“I think [higher hardware prices are] a distinct possibility,” said P.J. McNealy of American Technology Research. “There’s more technology in the box and it’s not getting any cheaper — especially if you look at the added multimedia functionality.”

While that’s forgivable, console fans may sour at the next announcement, which promises extra ouch for timing.

Goldman Sachs said Microsoft is expected to ship around 3 million Xbox 360 units in December, causing a demand that will exceed the supply.

“With the worldwide availability in the December quarter, likely strong initial demand, and the added cost of the hard drive [estimated at $30], we might see a higher initial price.”

PlayStation 3 isn’t going to help out your gaming budget. Estimations for PS3 are in the realm of $300 to $400 plus $60 a pop for games. The same price is expected for Xbox games.

For full realization of your video game dreams, CNNMoney says that once you add an HDTV and respectable stereo system, the full package will run in excess of $1700.

Nintendo’s Revolution, whose offerings are decidedly lackluster in the face of its competition, will ride a late market alternative, thought to cost between $150 and $200. Plus, it is retro-compatible all the way back to Nintendo ES.

Xbox, PlayStation Prices Like a Tax on Fun
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