Moore interview pt 2. Confirms lower price for EU.

[scooby_dooby]

Taken from Spong's latest interview:

"SPOnG: And that’s surely a lesson learned from the first Xbox?

Moore: Yeah, especially in Europe. One thing we’ve learned is shipping in March at 479 Euros is maybe not the right thing to do…we’re going to go at the right time and we’re going to price to meet the consumers’ needs."

also

"This is a global business now. And I know Europeans always feel they get shafted. Marketing is a key factor and pricing is a weapon, there’s no doubt. And if you over-price, regardless of what your profit needs are, you’re just going to be left with an inventory in your warehouse and your goods won’t sell. "

http://spong.com/detail/editorial.asp?eid=10109297

 

[Guden Oden]

shipping in March at 479 Euros is maybe not the right thing to do…

And I know Europeans always feel they get shafted.

WHOAH!
Can it be true?!?! They are learning...??? That can't be possible! Or can it?

Damn, I can't wait for the x360 to get released. I want mine NOW, and maybe, just maybe, I won't have to pay through the nose for it.

 

[DSN2K]

And if you over-price, regardless of what your profit needs are, you’re just going to be left with an inventory in your warehouse and your goods won’t sell. "

Sony seem to prove that otherwise..... make you brand appealing enough and people will pay anything.

 

[Guden Oden]

...Not that the PS2 costs "anything" though, or anywhere near it...

 

[Simon Templar]

Sony seem to prove that otherwise..... make you brand appealing enough and people will pay anything.

Not entirely, they used their presence as the solitary next gen platform for 1-2 years to allow them to charge an elevated price but when faced with competition they were forced to match pricing.

If they try to do this same thing this generation (being 6 months behind) they could have the issue that Mr. Moore desribes.

 

[pc999]

Please, suprise me MS

Sony seem to prove that otherwise..... make you brand appealing enough and people will pay anything.

Unless people dont have the money, because if they dont you can put XXII tech in there and they would still not buyng it, or that could creat a lot of thiefs, none option is a good one .

 

[StefanS]

"This is a global business now. And I know Europeans always feel they get shafted. Marketing is a key factor and pricing is a weapon, there’s no doubt. And if you over-price, regardless of what your profit needs are, you’re just going to be left with an inventory in your warehouse and your goods won’t sell. "

Sounds nice, but the proof is in the pudding...

 

[Shifty Geezer]

Sony seem to prove that otherwise..... make you brand appealing enough and people will pay anything.

I think Apple take gold in that race, but for sure, price is far from the be all and end all of what sells or doesn't.

 

[scooby_dooby]

Like moore says, pricing is a weapon.

Used right it can have a huge impact. x360 has to play to it's advantages, that means take advantage of your lower manufacturing costs.

 

[Paul_G]

Moore: Yeah, especially in Europe. One thing we’ve learned is shipping in March at 479 Euros is maybe not the right thing to do…we’re going to go at the right time and we’re going to price to meet the consumers’ needs."

"This is a global business now. And I know Europeans always feel they get shafted. Marketing is a key factor and pricing is a weapon, there’s no doubt. And if you over-price, regardless of what your profit needs are, you’re just going to be left with an inventory in your warehouse and your goods won’t sell. "

Maybe i'm just too cynical, but that is very vague. Shipping in March? It's not shipping in March. Maybe for Nov/Dec, €479 is right. Consumer Needs? The console maybe more deemed more than an average step up in MS's eyes. They may see €479 as right based on the performance offered.

Over price? compared to what? There is nothing else out before 360. I'm planning on getting it regardless, £299 or whatever, but i think people getting their hopes up over this sort of thing is asking to be disappointed. These guys never commit to anything, and always have a way of getting out of a quote.

 

[jvd]

So what are you guys thinking ? 300 euros ? that would equal 370$ with todays exchange rates . 70 isn't bad considering shipping costs

 

[scooby_dooby]

Over price? compared to what? There is nothing else out before 360. I'm planning on getting it regardless, £299 or whatever, but i think people getting their hopes up over this sort of thing is asking to be disappointed. These guys never commit to anything, and always have a way of getting out of a quote.

What's with people over analyzing everything everyone says, can't you just take someone at face vaue anymore?

He said launching in march AND launching at $479 were both mistakes that they do not plan on repeating.

Nuff said.

btw - your insinuation that MS is a bunch of liars is not based on reality. In reality, MS usually doesn't say something unless it's actually going to happen. Moore was pretty cut and dry about the fact they will launch with a lower price point than last time.

 

[Evil_Cloud]

I don't think Microsoft will price their console too aggressively either, they lost a massive amount of money on Xbox. It seems more logically to cut the price when PS3 and Revolution launches, combined with Halo 3 and some other titles.

 

[Paul_G]

What's with people over analyzing everything everyone says, can't you just take someone at face vaue anymore?

He said launching in march AND launching at $479 were both mistakes that they do not plan on repeating.

Nuff said.

I don't think i am over analysing though. I am as keen on 360 as you, i don't plan on getting Revolution or PS3, at least not for a while, but these guys - Peter Moore, Kutaragi, Reggie fils Aime. Doesn't matter who it is, they all say stuff that can be taken multiple ways and it's deliberate.

And also, I really want it to be cheaper, it means the difference between paying £300 and £200/£250, i just don't think it will happen is all.

btw - your insinuation that MS is a bunch of liars is not based on reality. In reality, MS usually doesn't say something unless it's actually going to happen. Moore was pretty cut and dry about the fact they will launch with a lower price point than last time.

Where did I say MS were liars? Where did i say anyone was lying? My point is that way Moore said it, whether it's €300 or not, he is right. I'm just sick of no one ever giving a cut and dry answer. Sorry if it seemed that was what i was saying; it wasn't.

 

[scooby_dooby]

No worries, I took your statement to be alot more cynical than you seem to have meant it.

I live in canada so I'm more concerned with OUR price! But good luck to you guys over there as well.

 

[a688]

Maybe i'm just too cynical, but that is very vague. Shipping in March? It's not shipping in March. Maybe for Nov/Dec, €479 is right. Consumer Needs? The console maybe more deemed more than an average step up in MS's eyes. They may see €479 as right based on the performance offered.

He is talking about the first xbox, not Xbox360.

 

[scooby_dooby]

Paul_G was just stating that it may have been the launch date Moore was referring to as a mistake, rather than the price.

i.e. a March launch at $479 was a mistake, but a x-mas launch at $479 might not be.

I think it's fairly obvious since the entire disussion is centered around price, that he was referring to both the launch date and the price.

 

[Acert93]

I don't think Microsoft will price their console too aggressively either, they lost a massive amount of money on Xbox. It seems more logically to cut the price when PS3 and Revolution launches, combined with Halo 3 and some other titles.

That is what I am thinking.

Maybe 360 thisa fall for 360 Euros ($440)? If it launches at $300 in the US, 360Euros--while high--would seem in the ballpark I would expect.

 

[Shifty Geezer]

Euro price has been rumoured at 350 Euros, £250. http://www.gamesindustry.biz/content_page.php?aid=10663
Which is cheap considering. Is MS are serious are making money they could afford to charge more and still sell the system IMO, with lots of scope for price drops to reach the markets when sales dip below production.

 

[Acert93]

Good info Shifty.

Maybe they are going for the goodwill position in European consumer minds?

If they ship at 350 euros and the PS3 comes in at, say, 500 euros, it could lead to a market shift.

Or more realistically, if MS launches at 350 that means Sony needs to go at 400ish.

I still have the thought that the Xbox 360 is, in many ways, designed to be as competitive in performance as possible while keeping the cost low and allowing for significant price drops in the future. One memory pool with one memory type/pool, very few extra doo dads, smaller CPU, though similar GPU in die size (255 logic vs. 275 minus pure video; the 80M eDRAM transistors obviously add some bulk, but they also are more tightly packed than logic) Obviously a high performing GPU is important to compete on screen. (HDD and BR are kind of a wash... both are expensive right now).

All in all, I still see a long term price war.