Sony to drop PS2 price to $129???

[Lazy8s]

The quality of the game library is important, but the first valuation a person makes is defining the nature of the product. If a product strays too far in some feature (like price) from the bench setter in that market, it'll create the impression that it's not a directly-competing product (not part of the same market) and may not be what the customer was looking for.

 

[Lazy8s]

It might also very well succeed in being attractive with such a feature difference and thereby change the perception of the market (or establish its own.)

 

[cthellis42]

Then you agree with the "valuation" of a console. That it's not necessarily in the retail price of the console but rather the "value" of the games on it. Therefore what exactly is this fear about lowering the price point equates to being a low-value console?

Because the public at large doesn't really operate that way you described above. Or if they do, they do so to a simplistic level. (Knowing one or two games they "must have" or make a platform "way better.") We take our time and evaluate the platforms on many levels--and usually have a much better grasp of all the software out there for it--but the bulk of people see what few numbers and games are in front of them, and may judge by that. They may judge by just what they see in a magazine advertisement. Hence, the console's price can mean many things.

 

[Ty]

I agree that a very cheap price can give people the impression that a console is less worthy of a purchase then at a higher price. But then it can also make the console more attractive to buy simply because.. well its cheaper Which way it goes really depends on the situation the console is in. For instance if a console drops in price and not many games are being released for it or the console is rumoured to be dying then sales could get ever worse then before. Because it just reafirms that this is a sinking ship. But if it has a good lineup and seems generally solid then it will almost always be a positive thing for sales.

Absolutely agreed. Notice that the "value" of a console to you takes into account the value you place in the available software. If it has crappy games you don't care about, then you won't buy the console at all unless there are other extraneous reasons (it's a DVD player, you collect consoles, etc.).

Lazy,

Agreed. It's possible for a low price point to cast a negative light upon the product. It's up to the "value" of the software on the platform to make up for this.

Because the public at large doesn't really operate that way you described above. Or if they do, they do so to a simplistic level. (Knowing one or two games they "must have" or make a platform "way better.")

I guess I have more faith in the average consumer than you.

We take our time and evaluate the platforms on many levels--and usually have a much better grasp of all the software out there for it

Hey, waitaminit, earlier you said you wouldn't bother to consider the strength of a console's software library.

--but the bulk of people see what few numbers and games are in front of them, and may judge by that. They may judge by just what they see in a magazine advertisement. Hence, the console's price can mean many things.

I don't disagree with the spirit of your statement other than to say again I think the average consumer deserves more faith than that.

Anyhow the fact that price cuts occur (decision by makers) and growth of sales can surge (decision by consumers) shows proof that the fear of having their console be perceived as "low-value" isn't that great imo. I thought the PS2 surged in sales when it dropped in price.

 

[cthellis42]

Hey, waitaminit, earlier you said you wouldn't bother to consider the strength of a console's software library.

<blinks> When did I ever say that regarding me? As far I'm concerned, game library is 90%+ to get one console over the other... as that's what you're getting it to DO. Heh...

And as far as the "average consumer" goes, I guess we'll just have to disagree there. But remember, a huge amount of consumers shop at WalMart, drink Budweiser, and enjoy Britney Spears' music, so...

 

[Ty]

Hey, waitaminit, earlier you said you wouldn't bother to consider the strength of a console's software library.

&lt;blinks> When did I ever say that regarding me? As far I'm concerned, game library is 90%+ to get one console over the other... as that's what you're getting it to DO. Heh...

Oh, I was referring to:

Ty wrote:

As an example, if a console you didn't own dropped its pricepoint to $50 bucks, would you not go through the thought process of considering the cost of the hardware ($50) vs. the 20 games you want to play on it?

You then wrote:

No, but then again, just how many games does one have to buy FOR that system to make up for the amount they lose on the hardware sale?

I presumed, "No" was your answer to my question as it was the only question you quoted in your response to me.

And as far as the "average consumer" goes, I guess we'll just have to disagree there. But remember, a huge amount of consumers shop at WalMart, drink Budweiser, and enjoy Britney Spears' music, so...

Heh, fair enough. I thought of another interesting statistic that could either help or hinder my argument though. What is the age breakdown of ownership of the various consoles? For instance, I believe the post-teen through mid 30 crowd would be quite consumer savy when it comes to consoles - just a belief mind you.