PlayStation, Nintendo 64 drop price to $99

[08.16.99] » Slow growth, Sega's Dreamcast spur new price point

   After weeks of speculation, both Sony and Nintendo today announced plans to drop the price of their current systems to $99. A price cut has been rumored for quite a while, as both systems' growth rates have started to stagnate and level off. The forthcoming release of Sega's Dreamcast also calls for new competitive measures.

   Sony was the first to drop. "The $99 price point has always been part of Sony Computer Entertainment America's strategy to bring the world's leading videogame entertainment system to the broadest audience," said Kaz Hirai, president and chief operating officer, Sony Computer Entertainment America. "With a console in more than one out of every five U.S. households, we are well on our way to establishing PlayStation as the de-facto standard in videogame entertainment. Now with PlayStation set at $99, we have taken the next step in our long-range plan to bring the platform to a mainstream audience of all ages."

   The new pricing scheme goes into effect on August 23rd. Simultaneously with the price drop, Sony will indoctrinate six new PSX titles into the Greatest Hits series: A Bug's Life, Crash Bandicoot: WARPED, Gran Turismo, Spyro the Dragon, Cool Boarders 3, and Twisted Metal III. Sony will also spend $150 million pushing the PlayStation brand, the new hardware price point, and key software titles this holiday season.

   Nintendo followed suit mere minutes later. The price of the Atomic Purple bundle (system unit and two controllers) is dropping to $99.95, while the price of the Episode One: Racer bundle (system unit, one controller, and Episode One: Racer game) is dropping to $119.95. Both price drops are effective on August 23rd, the same day as Sony's drop.

   "Thanks to our financial strength and rapidly growing market share, we are very pleased to make these exclusive hardware bundles available at these low price points," says Peter Main, Nintendo's executive vice president, sales and marketing. "With this new hardware pricing structure, boosted by $39.95 value pricing for worldwide smash hits like Banjo-Kazooie, GoldenEye 007(TM) and The Legend of Zelda: Ocarina of Time, the best video games ever created are now within reach of virtually all consumers."

   9.9.99 is just weeks away, and some of the PlayStation and Nintendo 64's greatest software releases are still to come. Now that Nintendo and Sony have upped the ante, the results of this three-way skirmish should be fascinating.