Microsoft’s Xbox 360 hit stores last November and was available in separate varieties. The cheapest cost consumers $299 but the system was the very basic, unable to play games from the original Xbox. The $399 system came with accessories and was backwards compatible. Microsoft has had no trouble in selling the product as many retail stores ran out of stock and has been waiting for more shipments. Even online retailers such as EB Games are pre-ordering new systems that will ship between March and May.

Sony’s Playstation 3 is slated for release later this year. The gaming industry’s information extravaganza, E3 (Electronic and Entertainment Expo) is being held in May this year. In recent weeks, rumors have swirled regarding what the price points of the newest gaming platform and electronic expo would cost. Sony has not officially spoke on the topic, likely as they are still fighting over it themselves. Some believe that the system could very well cost consumers upwards of $499 with some even believing the price could reach $699.

Sony’s latest endeavor is an internal Blu-ray disc drive, which according to industry experts, will take on the DVD format as the most popular media format. According to a GameSpot report, the “first stand-alone Blu-ray disc player was unveiled with a $1,800 price tag.” Sony will have to figure out how to bring that figure down to size obviously but just how low will they go.

Industry insiders believe that with a low price point, Sony would be setting themselves up for monumental financial loss. While they debate the price, as much as $1 Billion is at stake in the infancy year of the system. It should be noted that Microsoft withstood years of loss with its original Xbox before they turned a profit.

Nintendo’s Revolution system (its predecessor was the Gamecube) is also slated for release in 2006, some reports peg a possible release point as May. No specific details concerning the system’s technologies have been announced and could very well be Nintendo’s final bow in the platform market. Last year, Nintendo President Satoru Iwata confirmed the price of the system would be under the $299 benchmark.

This will be a key year for the Playstation brand although nobody even remotely thinks of it as being in danger. However, consumers can easily feel alienated with a brand priced exceedingly high. Video games themselves are reportedly ready for a price hike, anywhere from $5-$10 according to reports. Consumers were eased almost a decade ago when the original Playstation featured CDs, which were cheaper to produce than the standard cartridge featured in the Nintendo brand. G developers will try to make a few extra dollars with the increased cost of producing a game for these new and high-powered entertainment systems.

As Sony continues to urge the fact that their system is much more than simply a gaming platform, they are also counting on consumers to understand and fulfill that. Whether it will come to fruition won’t be known until probably this time next year when all three of the next generation systems are on the market and available.