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Forums - Sales Discussion - Will Sony Respond to XB1 Pricecut?

 

Will Sony Drop PS4 to 349?

No, they will let it ride a 399 164 39.42%
 
Yes 63 15.14%
 
No, but they will offer other incentives 189 45.43%
 
Total:416
Namiirei on 28 October 2014

they will not , but sony will probably do some good packs.

On Amazon.de, we had The playstation 4 + killzone 4 + infamous + knack for the normal price, it's not too bad.

they can (and they will) probably do something like this for holidays, and i think it's more than enough.



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Zanten on 28 October 2014
DJEVOLVE said:
Yes they did all of it because of poor sales... I'm not fighting that... ^^^^ to all posts. Loll Not sure if I missed something.


Fair enough. x3 It's nothing about you specifically, I just see the occasional sentiment crop up in the Internets from the more, er, vigorous Xbox supporters that 'Pffft, no, the sales weren't poor! Doesn't matter to them if Sony's in the lead! Microsoft just wants to give gamers choices! Not cause they don't think they have enough sales, but cause they're all generous and FLUFFY!' Given I'm of the firm opinion that anything any company does (be it the bundles for Microsoft, the Instant Game Collection with Sony, etc,) is to benefit the company by increasing value, that kind of talk just drives me up the wall a little. =P

Anyway, it can be hard to tell between the ones who just want to specify the distinction between a price cut and a value-boosting bundle or such, and the occasional one who's trying to say 'They didn't lower the price, this isn't because they don't like where their sales are!' So I apologize for nitpicking.

Since we don't seem to disagree on anything, I think our work here is done. =D



Zanten, Doer Of The Things

Unless He Forgets In Which Case Zanten, Forgetter Of The Things

Or He Procrascinates, In Which Case Zanten, Doer Of The Things Later

Or It Involves Moving Furniture, in Which Case Zanten, F*** You.

theprof00 on 28 October 2014
DJEVOLVE said:
Yes they did all of it because of poor sales... I'm not fighting that... ^^^^ to all posts. Loll Not sure if I missed something.

I think the argument is just that it makes little sense to argue over the exact terminology if the meaning is close enough. It would be like if I were to say "obama being the first black president is a monumental step forward", and someone was like, there have been plenty of black presidents in other countries. He's not the first black president. It's like, yeah, but I didn't need to say "of america" for you to get what I'm saying.

Not trying to be off-topic.

It's just like if you have an argument with someone and their rebuttal is pointing out a spelling mistake.



ExplodingBlock on 28 October 2014
Seece said:
Bargin bin ... dear lord. $500 to $350 a year after launch is not bargin bin, and I hardly see this hurting MS/XB1 ...


Fixed that for ya



theprof00 on 29 October 2014
padib said:
theprof00 said:
Im confused.
so is the argument against 150$ price difference the fact that a price drop can only refer to instances in which nothing other than the simple price is cut?

Thats perfectly reasonable. However I think the context is very important. When people are us in the word price cut in the context of 150$ drop, they are referring to the idea that the xb1 is in dire straits. Ie; Microsoft has made the entry point for the xb1 console 150$ lower, because, economically speaking, there isnt enough value in the kinect bundle to sell as many consoles as they would like. So they've increased the value by removing things consumers thought was unnecessary.

Maybe im being unreasonable but barring a better word for it, I think it should be perfectly acceptable to call that a price cut. Otherwise they'd have to write that whole paragraph every time. Sometimes "buzzwords" dont fit perfectly but become widely adopted in a different usage because the leap isnt distant enough to confuse anyone.

Its like saying something is full of win. Theres no specific definition for it, but if you said it to someone for the first time, it would be reasonably associated to what is meant, because although it doesn't fit the actual meaning, its close enough.

Source: over a dozen courses in psychology of language and linguistics.

That source explains a lot of things

Yep, it's my go-to mafia information. THere's a lot more to what's being said than just the words



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KingdomHeartsFan on 29 October 2014

They don't need to respond to it.



thismeintiel on 29 October 2014
iTechHeads said:
Seece said:
Bargin bin ... dear lord. $400 to $350 a year after launch is not bargin bin, and I hardly see this hurting MS/XB1 ...

They're devaluing their product by doing constant price cuts and free game giveaways.

A product that is popular and selling well doesn't have price cuts and free game promotions every month. It doesn't need them.

BTW, the Xbox One launched at $500, not $400.

Some Xbox fans have always done this little trick where they explain away pricecuts.  I suppose to make the situation look less grim for the Xbox.  Last gen it was "It's not a price cut, they are just replacing a SKU."  This gen it's "They got rid of Kinect, so it doesn't count as a cut."  Both poor reasoning.  The fact is, you couldn't get a XBO for less than $499 at launch.  MS took out the Kinect so they could CUT the price to $399 and not lose a ton of money, a CUT of $100. 

Using reasoning along the same lines, we could say Sony didn't really cut the price on the PS4 (if they do drop it to $349), since they got rid of some things, while changing others, on the PS4's motherboard so it was cheaper for them.

@ OP

I suspect they will just do a bundle with 1-2 free games.  Of course, I expect stores to have a $349 bundle for Black Friday.  That alone should be able to erase any gains made by the XBO in the first 2 weeks of Nov.



 

BreedinBull on 29 October 2014

They don't need to. These price cuts will only give X1 a slight chance in the US for two months. Sony will still be outselling it overall worldwide and once February and march comes by, what ever little ground the X1 has gained in the US will be chipped back from them.



Thanks jlmurph!

LiquorandGunFun on 29 October 2014

they might, they have been aggressive in countering MS.



 

DM235 on 29 October 2014
TheBlackNaruto said:
DM235 said:
Personally, I think Sony should do a matching price drop.

However, I think they will do what most companies do. Wait and see what impact it has. If sales of XBox One units jump up significantly (and in my opinion they will), they will react and drop the price then.


But why though that is the question? Why would they do a matching price drop for a temporary holiday promotion when they are literally curb stomping MS? Even if the XB1 sales jumped significantly Sony would have to drop HARD for MS to come close to passing it. Heck both Sony AND MS will already get a significant jump thanks to the normal Holiday boost but PS4 jump will be higher for obvious reason. So this price cut by MS in my eyes is a way to ATLEAST match the PS$4 sales wise in US/UK. SO this cut is a reaction to the success of the PS4 so there is no reason for Sony to react outside of normal Holiday deals.


I don't think the holiday promotion is temporary.  My gut tells that "holiday promotion" is marketing speak to create some urgency to buy now (before the price goes back up).  The only excpetion to this would be if sales really don't pick up (in which case MS is better off going back to the higher price to minimize losses), however I don't think this situation is likely.

The reason Sony should drop their price is to continue "curb stomping" MS.  If they don't, even is MS doesn't come close to passing it, they will still gain marketshare. This would be a win for MS.  This will be the first non-supply constrained holiday season, and any gains made this holiday will pay dividends for the next year (as friends tell their friends what they got, which would entice them to get the same platform).  As Sony, why would you want your competitor to gain anything on you?

I get it that Sony as a whole isn't doing that great financially, and that they would like to have extra profits this holiday, but that is a short term strategy.