This gen, it doesn't hurt MSFT at all. At this point in the cycle, it's hard to justify the price of switching to avoid XBL fees.
Next gen will depend on a few factors
- backwards compat and how desirable it is. People may not want to give up their PSN/XBLA games. That's going to create some brand loyalty inertia
- cost of service as compared to console. If PSN remains free, and XBL keeps its charge. Sony on price can match MSFT and then say, our console will save you money over time cause our service is free.
- how well Sony improves its service. They'll keep catching up, they've caught up plenty already.
- how much consumers value MSFT's improvements. Eventually they're going to run out of worthwhile new ideas- every new idea does. Then it's about execution, and you can learn execution.
- the economy. People will be more price-conscious in future I believe. This is a scary economic time. This will likely delay next gen to boot though.
Overall, I think the pricepoint issue will remain though. It would be suicidal for Sony to start charging (free online and Blu-Ray are the selling points of PS3) , and MSFT can't afford to not charge this gen.
Next gen will depend on a few factors
- backwards compat and how desirable it is. People may not want to give up their PSN/XBLA games. That's going to create some brand loyalty inertia
- cost of service as compared to console. If PSN remains free, and XBL keeps its charge. Sony on price can match MSFT and then say, our console will save you money over time cause our service is free.
- how well Sony improves its service. They'll keep catching up, they've caught up plenty already.
- how much consumers value MSFT's improvements. Eventually they're going to run out of worthwhile new ideas- every new idea does. Then it's about execution, and you can learn execution.
- the economy. People will be more price-conscious in future I believe. This is a scary economic time. This will likely delay next gen to boot though.
Overall, I think the pricepoint issue will remain though. It would be suicidal for Sony to start charging (free online and Blu-Ray are the selling points of PS3) , and MSFT can't afford to not charge this gen.