As far as 360 price, some are saying 360 has a great price advantage versus PS3, but I think that can be argued. In Europe it's true AFAIK, but in the USA with the Arcade pretty shunned, people basically buy one of two skus, the 349 pro or 449 Elite, which averages out to the same as PS3.
So I think the next rumored drops still put the 360 in a better position, as has been covered but I'll illustrate with a table. Currently 360 prices
No HD =279
20GB=299
60GB=349
120GB=449
After rumored cut
No HD=199
60GB=299
120GB=399
I dont know, these PS360 numbers are really low, and NPD rather befuddles me sometimes. I'm in "need more data mode" myself. I'm especially wondering if 360 demand is really so anemic. My hunch is it isnt, but again "need more NPD's" to be sure. I've noticed 360 hardware becoming a lot more active on amazon lately since the Gears 2 software sku's hit (though still below PS3 as is usual on amazon).
If 360 demand is really so anemic, then MS has a problem, and I'm not sure what to do about it. Maybe the hardware unreliability rumors are taking a toll. Maybe a Blu Ray equipped Elite SKU as has been rumored off and on for ages is badly needed, maybe people really want their console to have Blu Ray. Maybe the Playstation brand name combined with flashy games is finally taking hold.
I'll tell you another thing I think may really hurt MS, the high priced wi-fi adapter. It's always ranked highly on amazon, suggesting to me it's a normal purchase with a 360. If people are mentally adding that $100 as a "necessity" to 360's price, then they very well may be perceiving the PS3 as a far better deal en masse. Perhaps MS needs to start building in wi fi or at the very least drop the adapter to $50. In the end these are just some thoughts and it's difficult to say.
Another thing is the pitiful 20Gb HD in the pro could be slowing sales, personally this has always bothered me being so tiny, but I dont know if the masses agree. What I did notice at Best Buy was the clearance 20Gb appeared to be selling briskly (only one remaing) while there were plenty of 60GB's and Elites. So that hints it's not a factor (if it was a large factor people would be choosing the 60GB even at an extra $50). Then again, the size of the stacks at Best Buy may not have anything to do with actual sales anyway of course :smile:
Also keep in mind the ol June=5 week July=4 week thing. Comparing weekly rates shows you the Wii actually slightly increased in sales in July for example. PS3 sales were down 31% (but if there were shortages, it's skewed), 360 sales were up 16% on a weekly basis from June. (Still a lot less than I'm sure people were expecting due to the 299 clearance, but at least there was some increase to show us we're not crazy).
MS might be in a better position after the price cut but imho the RroD costs made them lag way too much behing their own schedule as far as price cut are concern.
Now this has allowed Sony to regain its balance and Sony is in a proper situation to play its strenghts. Sony in its fight vs MS would benefit more from a price cut than the latter.
There is also an issue selling that much the Wii is clearly stealing a lot of gamers that may have buy the 360 or the ps3 when more affordable.
I mean reaching 199$ will boost the market growth for both Ms and Sony but may less tan in the previous because the Wii will have feed on a non negligible part of this market.
I don't think MS face a different problem as Sony, both of them mess in different manners and to different extend to"kill the game".
Now no matter the historical strenghs of these encounters and how the match turn out while they trying to reach an acceptable street price for the average gamers, Nintendo is already feeding a part of this market.
there is room for them for sure, the wii is not for everyone but clearly Wii and ps360 market overlap. Clearly I don't expect the ps360 to reach at some point the actual Wii sales.
EDIT may be by the end of this gen when Wii will really look dated but who knows about the Wii2/EDIT
For Ms specific case, I guess right the offer is a bit messy, and I don't feel like their doing proper effort to clear the channel.
Why do slight drop on the 20GB introduce @350$ a new pro pack with a 60GB HDD, and then some month latter do a tiny price drop once again?
It's messy/confusing I can't be properly advertized, etc.
Looks like Ms is laking agressivity, no longer sure about their goals.
Be profitable is respectable but in their situation it's a short term view. Sony is still stronger as brand and as an actor on the market (I state that in regard to stuio/editing power).
Ms should accept at least to barely break up for some more years, it's no longer about losing money.
And if they don't this this gen it will likely cost them moreto do so by the next generation.
Ms should have do the price drop and the introduction of the new SKU all together and make it vocal.
Like
No HD=199 (make this vocal too)
20BG=250$ till we run out of stock.
60GB=299
120GB=399
I would go even further MS needs to discontinue its multi sku offers.
It's a mess, I heard at some point rumors here stating that MS may consider an upgrade pack for the arcade pack and that the way to go.
Ms offers should like this, the 360 is the arcade pack and it's available @199$ (with some games I don't remember the exact offer).
That's it clear neat.
Want an HDD, a microphone+headset buy the a pack @100$.
Want more buy the elite online pack @ 200$ (between for the 120GB is not enough for the price and by far... and they could include the wifi adapter for example).
It would have side effect stop the constant speculations about the perenity of the arcade pack. And from now would make upgrade of HDD capacity a non issue.
And other thing Ms may consider is to drop the ball (as they did on the Pc side) is to stop the gold/sliver membership non-sense.
IMO it's become more and more bothering as ps3 user base grows and prices goes down.
For example Ms charges too much for accessories, it's no where near as bothering.
OK some will once again say it's not expansive and it's not the point, it's ill percieved by most gamers IMO.
It could have some side effect, the guy who buys a arcade pack and is more a single player type can discover online playing and then buy an expansive HDD, etc. Possible extra revenues.
If MS is able to do that they may be in a better situation to face say in some months (say when the ps3 catch up in user base).