*spin-off* Console Launch Price Discussion

Discussion in 'Console Industry' started by anexanhume, Feb 7, 2013.

  1. Arwin

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    Sorry, yes of course I mean their next-gen iterations. ;)

    I think the new Kinect will in fact be cheap. I am assuming it won't have a motor this time, and most, probably all of the processing will be done by the next Xbox. It leaves a number of components that may well be equal to those in PS Eye 2 (which has two cameras) and both of them are likely going to be so cheap to build that they'll hardly have a significant impact on the total price. If either of them costs more than $20 to make, that would surprise me, and therefore the difference has to be less than that. Assuming the last leaks are correct, I think Microsoft has done a lot to try and undercut the PS4, expecting to have to work at that much harder than last time.

    That said, I definitely also expect Microsoft to try a subscription model - it just makes a lot of sense to do that combined with Live, given where they are coming from.
     
  2. dagamer

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    Why do you think specs and prices are that tightly related? They only dictate how high a console price must be (to avoid loosing too much money), not how low it can be (in order to reap more profit). Keep in mind that the current Xbox 360 with Kinect sells for $299, I don't see why Microsoft's next console should sell for the same amount and not more.

    Pricing is more about perception than the cost of BOM.
     
  3. DrJay24

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    Super wishful thinking, not based on any data or historical trends. The Wii U is $299, the PS3 is $269, the 360 w/ HD is $299 the PS4/720 will be $399 minimum. Why give away early adopter money when you don't have to?
     
  4. ramr

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    Because they are playing to win and want kinect to be ubiquitous. Because Sony is launching at or near the same time. Because that is their stated strategy from the Yukon leak. Because there will probably be a higher priced SKU for hardcores / earlier adopters most likely at least $399 (at minimum better HD configurations). That replicates the 360 launch.

    WiiU has the silly Nintendo premium, it should have launched at $199 given the tech involved.
     
  5. Nisaaru

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    The vgleaks 720 specs are not worth 399$ to me. AMD 7770, slow and cheap cpu cores and 8GB DDR, 640GB HD, bluray, case and psu. 249$ in a console.

    WiiU and Wii have both been completely overpriced. The Wii price back then felt like a complete rip off after a Gamecube at 99$. Never the less the lowest console price only allows people to get it as a 2nd console for its exclusives while most games are bought for the primary console.
     
  6. dobwal

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    The new Kinect unit is not guaranteed to be more costly. The new Window Kinect camera doesn't have the three PCBs like the 360 Kinect camera, it has only one leading to cost savings.

    Furthermore, with it going into every console MS should see better component pricing.
     
  7. (((interference)))

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    It doesn't need a tilt motor either thanks to the wider field of view.
    Probably won't require a fan either.
     
  8. TrungGap

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    What is the cheapest Xbox 2 cost nowadays? 199? Does that include kinect? How hdd?

    Most companies with brand recognition price their product based on perceived valve. If the current valve of Xbox and ps3 is around 299 (with hdd). Marketing will add 100 for k2/ps eye, and then 100 for new console launch....because you can always lower your price...if they start at any lower they have less room to make adjustment later...and have to sort to bundling as their only means.
     
  9. AzBat

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    The 4gb flash model(HDD upgradeable) without Kinect has been the cheapest SKU at $199, but they had sales last year from $150 to $180. Now you can still buy the $99(WAC) Xbox Live 2-year subscription subsidized plan. That SKU does come with Kinect.

    Tommy McClain
     
  10. lefizz

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    I see a €399 £350 $399 price for xbox3
     
  11. Nisaaru

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    As the price will be mostly marketing driven that might be the case as they might suffer under the delusion that they'll can make big money on HW sales alone like Nintendo in the past. But personally I really can't see the value in the vgleaks HW which I would locate at 249$ in a console.
     
  12. lefizz

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    There is a very large amount of pent up demand for a new high end ( in their eyes) console. Those people are early adopters who don't mind paying a bit over the odds, i know I'm one.

    What the price is a year down the line is totally different but at the start the price while not irrelevant isn't SO important when you are also probably heavily supply limited. An extra £$€50 on the first 10 million units before an early price cut a year in would do wonders for the gaming divisions bottom line
     
  13. lefizz

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    Also the whole competition with each other doesn't really kick in at the start. Most of these people will either buy both or are religious about which they are going to buy. Price isn't the issue for these guys.
     
  14. Exophase

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    No way could you build a comparable PC for $249 USD, if that's what you're saying. GPU, CPU, and motherboard alone would cost more than that. HD 7770 costs $120. Pricing a similar CPU is hard since there's no 8 wimpy core x86 on the market, so instead you'd go with something like an FX-4100 which will run you $105. A strictly dual core Pentium or Celeron will not cut it.

    Even if you mean a $250 BOM cost for Microsoft that's somewhat optimistic if including Kinect 2 hardware. I wouldn't blame them for wanting to launch with a small profit for a change. I could see a $299 price happening, with a new XBox 360 w/hard drive costing less, of course.
     
  15. AzBat

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    If the Kinect 2 requirement is to be believed, then I wholly expect a $399 launch price. Haven't decided if that will be premium SKU or not. I'm leaning toward premium SKU since I believe it will match a base PS4 SKU at $399.

    Tommy McClain
     
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