X360 price drop speculation

[borowki]

Anyways maybe they are, durned if I know. In Yen terms, does the PS3 sell for less than the PS2 initially retailed for?

The PS2 launched at Y40000, while the PS3 launched at Y50000/Y60000. Adjusted for deflation, the high-end model is close to costing twice as much as its predecessor.

 

[one]

http://www.hollywoodreporter.com/hr/content_display/news/e3i75ec4629cfe1313a51e0e767c0ee6860

Xbox spec: $50 cut in Aug.

Timed to release of major titles

By David Ward

July 25, 2007

In an effort to regain momentum in the video game console market, Microsoft Corp. will cut the price of the Xbox 360 by $50 early next month, sources said.

The reduction will be made Aug. 8, according to one source in the retail world, noting that the cut will come during what traditionally has been one of the slower times of the year for game hardware sales.

Asked to comment, a Microsoft spokesman said: "We have no announcements to make on pricing at this time. While price matters, content is king. And no other system is offering all the games people want to play this holiday at a better price than Xbox 360."

Still unclear is whether the cut will be made to all three versions of the Xbox 360 on the market. The Core model, which accounts for about 20% of Xbox 360 sales, retails for $299; the best-selling Pro model sells for $399, and the Elite model is about $479.

 

[scooby_dooby]

If coupled with a reduction in peripheral pricing, this could have a good bump I think, especially in core sales. But, otherwise, it's too little.

I think MS is probably thinking they have a great lineup for fall, and all they need is a little bump on top of that to get some really excellent sales, and they will.

But, with a $100 drop the sales would be crazy insane, so I still consider it a missed opportunity.

When GTA4 comes out, MS should be there at $199 with the core, and $299 with the premium, they really shouldn't miss that chance of converting such a huge swath of PS2 owners.

 

[TheChefO]

But, with a $100 drop the sales would be crazy insane, so I still consider it a missed opportunity.

When GTA4 comes out, MS should be there at $199 with the core, and $299 with the premium, they really shouldn't miss that chance of converting such a huge swath of PS2 owners.

Agreed.

Even if 65nm isn't ready yet, they will only lose out on a small number in the grand scheme of things.

Domination this Christmas is possible with such a lineup and such a pricepoint. If they only follow through with a $50 price, it seems they are content with just "competing". Such a lax attitude could come back to bite them in the ___ in the long run, as I'm sure Sony isn't looking to play "nice" and when they have their opportunity, they will strike.

Once momentum is lost, it is very difficult to regain.

 

[one]

But, with a $100 drop the sales would be crazy insane, so I still consider it a missed opportunity.

A $100 drop makes it cheaper than Wii, and people may actually start to think Wii is more valuable than 360.

Unless it's guaranteed a $100 drop adds sales of shitload more software it's quite dangerous as it's possible they will still lose money on $199 Core.

 

[Rangers]

I consider this to be a "safe" move with the concentration on profitibility.

It also leaves room for a second $50 drop later in the year if they dont like how the sales needle is moving.

Also, the PSP's recent $30 cut was fairly effective, and the PS3 cut was effective, I think consumers simply get excited about news of a cut itself to a certain extent. This could stimulate plenty of people to go out and buy 360's just on herd mentality. Just as they seemed to scoop up those 60GB PS3's at 499, even though the 20GB PS3 was available for a long time at 499 and failed to sell, which doesn't make much logical sense.

Here are some before/after prices after a game, 8.25% tax, and cheapest $30 mem card for Core:

Before:

Core 299+$60+$30+tax=$421.09
Premium $399+$60+tax=$496.87
Elite=$479+$60+tax=$583.47

After cut, same configurations:

Core=$366.97
Premium=$442.74
Elite=$529.34

Other consoles:

Wii (game included) $249+tax=$269.54
60GB PS3 $499+$60+tax=$605.12
80 GB PS3 (game included) $599+tax=$648.42

I dont know if the "game included" comparisons are entirely fair as you dont get to CHOOSE the game you want, and I suspect most people would buy a game even with game included consoles anyway.

 

[scooby_dooby]

A $100 drop makes it cheaper than Wii, and people may actually start to think Wii is more valuable than 360.

Meh, I'm not convinced people are this stupid. It's really a ridiculous notion imo, people know what 360 is in comparison to PS3, and if they can get one at $199 they'll buy it in droves when GTA hits.

 

[TheChefO]

....Just as they seemed to scoop up those 60GB PS3's at 499, even though the 20GB PS3 was available for a long time at 499 and failed to sell, which doesn't make much logical sense..

Actually, Sony purposely limited the production of the 20gb and by most accounts, the 20gb was sold out. The 60gb were the ones regularly sitting on shelves.

For this reason, I did find it very comical that Sony would say: "poor sales led to us pulling the plug on the 20gb".

Sales numbers before and after the 20gb cancelation prove this point.

 

[Todd33]

by most accounts, the 20gb was sold out.


Sales numbers before and after the 20gb cancelation prove this point.

Huh?

 

[TheChefO]

Huh?

...meaning it sold as soon as it hit the shelves.

 

[Todd33]

...meaning it sold as soon as it hit the shelves.

But if it were limited by Sony how would it change the sales figures? Your statements can't both be true.

 

[AzBat]

http://blog.newsweek.com/blogs/leve...r-microserf-another-bet-on-sony-hardware.aspx

That might be one reason why Microsoft may only drop the price $50. They might be thinking that Sony has a $400 model coming before Christmas and they plan on dropping the price of the 360 another $50 to compete. Personally, I'm thinking N'Gai probably has it right, drop the 80gb to $500 before Christmas when the 60gb sells out and no more other SKUs. So I don't see Microsoft having 2 price drops in less than 5 months. If they drop $50(which I believe is more likely than $100) in August then I'm sure they won't have another price drop till early next year. I guess we'll just have to wait and see.

Tommy McClain

 

[scooby_dooby]

But if it were limited by Sony how would it change the sales figures? Your statements can't both be true.

Yes they can.

Sales dropped after the 20gb was discontinued.

Sure it was sold out and shipments were limited, but doesn't mean the shipments == 0. They would still have a positive affect on the sales figures.

 

[Todd33]

Yes they can.

Sales dropped after the 20gb was discontinued.

Sure it was sold out and shipments were limited, but doesn't mean the shipments == 0. They would still have a positive affect on the sales figures.

Sales dropped every month pretty much, you guys can claim it was the announcement that the 20GB was discontinued despite it not being on the shelf for months anyway? You have data or just a 'gut feeling'?

 

[quest55720]

http://blog.newsweek.com/blogs/leve...r-microserf-another-bet-on-sony-hardware.aspx

That might be one reason why Microsoft may only drop the price $50. They might be thinking that Sony has a $400 model coming before Christmas and they plan on dropping the price of the 360 another $50 to compete. Personally, I'm thinking N'Gai probably has it right, drop the 80gb to $500 before Christmas when the 60gb sells out and no more other SKUs. So I don't see Microsoft having 2 price drops in less than 5 months. If they drop $50(which I believe is more likely than $100) in August then I'm sure they won't have another price drop till early next year. I guess we'll just have to wait and see.

Tommy McClain

That would be stupid of MS you don't do multiple price cuts in a short time period. Then you just have people waiting for the next price cut since they seem to come all the time.

This is put up or shut up time for MS IMO they have the holiday line up. The question is are they going to cut 50 and be happy to be 3rd world wide and close second in NA with sony on their heals or are they going to go for it 100 dollars cement NA and most likely second place world wide behind the Wii. If sony can keep it remotely close this fall in NA and not fall to far behind they are right back in the game holiday 2008 with the game line for that year. The ball is in MS court the 3rd parties have delivered the question is will MS hold up their end.

 

[one]

http://blog.newsweek.com/blogs/leve...r-microserf-another-bet-on-sony-hardware.aspx

That might be one reason why Microsoft may only drop the price $50. They might be thinking that Sony has a $400 model coming before Christmas and they plan on dropping the price of the 360 another $50 to compete.

That's just a FUD blog post by an MS employee to scare people off about $499 PS3 SKU and tell them to wait for $399 that won't come in this year in reality.

 

[TheChefO]

Sales dropped every month pretty much, you guys can claim it was the announcement that the 20GB was discontinued despite it not being on the shelf for months anyway? You have data or just a 'gut feeling'?

The fact that they sold every one that they made makes the argument all by itself. In other words, there was demand for a $500 ps3.

The latest sales data indicates there is still demand for a $500 ps3.

When the 20gb $500 ps3 was removed from shelves, these sales (however insignificant) were lost. Perhaps other sales were lost as well.

Example:

Joe consumer goes to his local shop to pickup a $500 ps3. He sees that for the 6th time this month, they are still sold out, so he says what the heck and picks up a $600 one. The intention and sale was made for that consumer based on the $500 price, but the fact the desired product was sold out led him to get the next available. Not saying this was a majority case or anything of the like, but I'm sure it's happened.


I'm aware the sales dropped monthly, but FWIR, there was a notable dip after they cancelled the 20gb (Is that surprising?).

 

[TheChefO]

That's just a FUD blog post by an MS employee to scare people off about $499 PS3 SKU and tell them to wait for $399 that won't come in this year in reality.

hehehe

If so, it's a pretty good one. Counter to the "get em while their hot" (sold out by the end of July) claim.


Honestly though, if this was really an MS ploy, it would still have people eyeing upcoming ps3 games. Getting their minds made up to purchase it when ps3 does hit that low price. Even if the price never hit that low this year, it would still have them holding out for ps3 and mentally prepared to jump on it when that price is realized (which may be next May).

It would be quite foolish on their part.

 

[dobwal]

Actually, Sony purposely limited the production of the 20gb and by most accounts, the 20gb was sold out. The 60gb were the ones regularly sitting on shelves.

For this reason, I did find it very comical that Sony would say: "poor sales led to us pulling the plug on the 20gb".

Sales numbers before and after the 20gb cancelation prove this point.

Isn't GameStop selling its remaining stock of PS3 20 Gb for 449.00 as we speak or is that a rumor?

 

[TheChefO]

Isn't GameStop selling its remaining stock of PS3 20 Gb for 449.00 as we speak or is that a rumor?

First I've heard of such a thing. They've been sold out in my area since before Sony announced the 20gb going disco.