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Forums - Sales Discussion - Next Round of Price Cuts

When and how much do you guys think the next round of price cuts will be? Its already clear that there is some pricing pressure on Microsoft to drop the Xbox 360 price in springtime to stay competitive. Its obviously selling well because of the good slate of games and some pricing edge against the PS3 and Wii, as well as some momentum, but its definitely slowing down in Europe big time and this could be a slow spring in America as well if Microsoft doesn't stay active with price cuts.

When spring rolls around Microsoft will finally be selling entirely the new less RROD-prone Xbox's, which are also cheaper so they should still be making a profit. I think they will do the following this spring.

 Phase out the Xbox 360 Arcade bundle.

Xbox 360 Pro $350 >> $250

Xbox 360 Elite $450 >> $300

 

Pretty drastic cuts, but those wouuld really spur some sales. I think Nintendo would hold strong on pricing if sales are still going along well enough, maybe drop the Wii to $199 eventually. Sony would hold strong.



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If they drop the 360 that low they will lose money again.



 

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I think the next price drop is still far away



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Next price cut will be the day before GTA4 releases for the Xbox 360.



Next Price cut will be mid to late next year I think.



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i doubt nintendo will drop their price for a while since their selling out. the point of a price drop is to create demand which they obviously don't need.

the 360 will probaly have a price drop soonish but not as much as your suggesting. i'd guess they'll wait until a big event to maximize the effect like the release of GTA IV.

sony is taking such a loss on the ps3 that i doubt they'll be able to afford another price drop for a long long time. probably no price drop at all this next year imo.



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kitler53 said:
i doubt nintendo will drop their price for a while since their selling out. the point of a price drop is to create demand which they obviously don't need.

the 360 will probaly have a price drop soonish but not as much as your suggesting. i'd guess they'll wait until a big event to maximize the effect like the release of GTA IV.

sony is taking such a loss on the ps3 that i doubt they'll be able to afford another price drop for a long long time. probably no price drop at all this next year imo.

 I agree, nintendo doesnt need a price cut unless demand falls which I cant see happening, at least not in the foreseeable future. Sony will be pleased with how things are going at the moment, doubt we'll see a price cut unless the PS3 sales drop steeply next year.



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Nintendo has Microsoft and Sony so totally pwned in this category.

I want to point something out, just to make sure people are clear how strong a position Nintendo is in: Nintendo could almost certainly drop the price of the Wii to 99 dollars right now, and they would still be losing less money per Wii than Sony is per PS3. 

Put more generally, the Wii is the only system that launched for a profit, and now is being sold for approximately 60-75 dollars in profit per console in the US according to recent estimates. By contrast, the PS3 was sold for a 200 dollar loss when it launched at the same time, and has since then seen 200 dollars cut off that already too-low price.  

Microsoft is in the middle, and does have some flexibility. Still, it's amazing how strong a position Nintendo is: they could easily do a drastic price cut any time they wanted, and it's quite possible the Wii will be the first system to sell for 79.99 when it's still going strong 4+ years from now. 



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Bodhesatva said:

Nintendo has Microsoft and Sony so totally pwned in this category.

I want to point something out, just to make sure people are clear how strong a position Nintendo is in: Nintendo could almost certainly drop the price of the Wii to 99 dollars right now, and they would still be losing less money per Wii than Sony is per PS3.

Put more generally, the Wii is the only system that launched for a profit, and now is being sold for approximately 60-75 dollars in profit per console in the US according to recent estimates. By contrast, the PS3 was sold for a 200 dollar loss when it launched at the same time, and has since then seen 200 dollars cut off that already too-low price.

Microsoft is in the middle, and does have some flexibility. Still, it's amazing how strong a position Nintendo is: they could easily do a drastic price cut any time they wanted, and it's quite possible the Wii will be the first system to sell for 79.99 when it's still going strong 4+ years from now.


 Sony's losses are pretty much the same as when they launched due to improvements in the technology, but still, theyve along way to go to make the money back.



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