Is it wise to announce that you will be dropping the price NEXT YEAR?
Won't that just make everyone defer their purchase?
Won't that just kill the incentive for people to make software?
Mike from Morgantown
I am Mario.
I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble.
I don't see how a price cut will do anything. Sony can not undercut current promotions:
This is amazon germany right now. You can get a wifi Vita + LBP for 214,95€. Add a 4GB memory card and you are 25€ below the price of the bundle. Or you can get a wifi Vita + 3 games for less than the MSRP of a single PS VITA.
Ongoing bet with think-man: He wins if MH4 releases in any shape or form on PSV in 2013, I win if it doesn't.
I don't see how a price cut will do anything. Sony can not undercut current promotions:
This is amazon germany right now. You can get a wifi Vita + LBP for 214,95€. Or you can get a wifi Vita + 3 games for less than the MSRP.
What you on about? If the official price is lowered then that promotional price will be lowered....duh.
(someone's going to say the vita doesn't have an official price - yes it does - don't be silly).
So if Sony cuts the official pirce to 200€, amazon will go down to 150€? That sounds really healthy for Sony and Amazon. No, what happens right now is the following: The price cut is already happening, and it cuts into the margin of the retailers. If Sony officially cuts the MSRP, the will take 50€ less profit from any unit sold, so now it cuts into Sony's margin. That does not guarantee that amazon will continue to lower the price from the 200€ point.
Ongoing bet with think-man: He wins if MH4 releases in any shape or form on PSV in 2013, I win if it doesn't.
Why do this Sony? Your fans gave you nothing but appluase at E3 2011.
What happened?
What had happened was....
The 3DS was positioned at the same exact price so in comparison, Vita was the obvious better buy for your money. Knowing the 3DS would be the same price most consumers were content. Then lackluster 3DS sales happened and NIN decided to bite the bullet and slash price dramatically. So now that the 3DS can be had for $60-90 less, it puts a very bad light on the Vita.
Everyone sorta expected 3DS to be market leader and Vita to tag behind. Yet when not even the 3DS could sell it started to look bleak. Nintendo price cut is what is killing Vita. The general mind set goes as follows:
If you know someone who bought a 3DS as an early adopter, you see how bad they were just fucked over. Ambassador program is nice and all but many could live without it and saved a lot of money. This is a market lesson learned.
Now seeing as most expected Vita to lag behind 3DS from the start, the fact that it had to cut price instills the very FIRM belief that Sony would have to follow suite with its handheld. No one wants to be the fucked early adopter who gets shafted out of big savings, after JUST witnessing the situation with 3DS.
Like someone said earlier, first rule of Price Cuts is....you don't talk about price cut. Well unfortunately due to this situation, Price slashing was the first thing served up to Vita the second it hit market. The idea that a Price Cut is just looming in the near future is keeping people from making the leap.
Not to mention the media is sensationalizing all of this with its constant "DOOM!! DOOM!!!" articles on Vita, further scaring 3rd Parties away that were originally on board, and hense scaring customers away.
What should have happened: NINTENDO should have stuck to their guns a bit longer. Yes, 3DS was grossly over priced but making a profit off the bat isn't a sin. Everyone is letting Apple get away with murder with upwards $200 pure profit on every idevice sold. Sony and Nintendo are attempting the same thing (actually NIN always sells at a profit...until now). The fact that Nintendo crumpled under the pressure, and it being market LEADER at the moment, puts the whole industry in a very bad position. Now the idea that consumers can just wait out a price cut is strong in the air, and can be deadly to a company trying to just stay afloat. It might be working out for them now, but this new precedent can bite them in the ass later. Early adopters are the only thing that keep these consoles going and if they feel really burned....
Greatness Awaits
PSN:Forevercloud (looking for Soul Sacrifice Partners!!!)
I'm afraid to buy a Vita, because I'm wondering if it will be compatible with the PS4. You know, this gen is almost over, I'm thinking forward. And now Sony says there'll be a price cut next year. So yeah, I think I'll wait till the end of 2013 to buy it.
mike_intellivision said: Is it wise to announce that you will be dropping the price NEXT YEAR? Won't that just make everyone defer their purchase? Won't that just kill the incentive for people to make software?
Mike from Morgantown
All he stated was the obvious. EVERY console gets a price cut in their second year, this isn't news.
Greatness Awaits
PSN:Forevercloud (looking for Soul Sacrifice Partners!!!)
mike_intellivision said: Is it wise to announce that you will be dropping the price NEXT YEAR? Won't that just make everyone defer their purchase? Won't that just kill the incentive for people to make software?
Mike from Morgantown
All he stated was the obvious. EVERY console gets a price cut in their second year, this isn't news.
Except that usually people with a company don't state the obvious.
For example, Nintendo probably didn't help Wii sales by announcing its successor 18 months out.
I am Mario.
I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble.