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Forums - Sales Discussion - Xbox Boss Expects PS4 Price Drop In US

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Do you expect a PS4 Price Drop in the US this Fall

Yes 116 60.73%
 
No 42 21.99%
 
See Results 32 16.75%
 
Total:190
d21lewis on 11 October 2015

So he was right. Awesome.



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Dr.Henry_Killinger on 11 October 2015
d21lewis said:
So he was right. Awesome.

Wrong about the date though, so we'll say he's at pachter prediction level.

also lol @ the terminology argument



In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank

Cartmanbrah on 11 October 2015

Price cut happened simply because sony knows the xbox exclusive line up coming this holiday and that made them drop the price. Either that or get owned again in sales just like last holiday and the year before that and the year before that and the year.... you get the point.



GribbleGrunger on 11 October 2015

My take on the situation:

Spencer suggests Sony will drop the price of the PS4 at PGW in order to try and slow sales of PS4

It worked to a degree so Sony decided to drop the price early.

This is exactly what Spencer wanted, which is why he was precise with when.

Sony know this is what Spencer wanted and know it gives him the advantage of a later price cut come Halo week.

Spencer leaves the price of the bundles as is because the price cut only gave Sony parity.

Sony play it clever though and don't actually announce a $50 price drop but rather a price reduction, making sure there's a game with every bundle that's reduced.

Spencer looks at the situation and wonders why Sony haven't gone for the usual $100 price cut. He's now uncertain.

Sony now know that all they have to do to match another price drop from MS is to release a standalone PS4 for $300 and perhaps throw in an older game if need be.

It's a game of chess.



 

The PS5 Exists. 


d21lewis on 11 October 2015
GribbleGrunger said:

My take on the situation:

Spencer suggests Sony will drop the price of the PS4 at PGW in order to try and slow sales of PS4

It worked to a degree so Sony decided to drop the price early.

This is exactly what Spencer wanted, which is why he was precise with when.

Sony know this is what Spencer wanted and know it gives him the advantage of a later price cut come Halo week.

Spencer leaves the price of the bundles as is because the price cut only gave Sony parity.

Sony play it clever though and don't actually announce a $50 price drop but rather a price reduction, making sure there's a game with every bundle that's reduced.

Spencer looks at the situation and wonders why Sony haven't gone for the usual $100 price cut. He's now uncertain.

Sony now know that all they have to do to match another price drop from MS is to release a standalone PS4 for $300 and perhaps throw in an older game if need be.

It's a game of chess.

Quote for truth!



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LudicrousSpeed on 11 October 2015

I'm never going to understand how Phil Spencer being quoted in an interview that 99% of gamers will never read is going to somehow slow down PS4 sales LOL.



ils411 on 12 October 2015
Hiku said:
ils411 said:

 

If there was really a $150 price cut than the oriignal sku, which is the xbox with kinect bundle, should now be $349.00, which is not the case.

 

The bolded part is incorrect. In order to achieve a certain price point, manufacturers some times need to sacrifice hardware as well. Sony removed the Emotion Engine from PS3 as part of the strategy to reduce it's cost, along with some USB ports, etc. So if the hardware remained, it would not have achieved the same price point.
The reason Microsoft kept selling a bundle with Kinect is because they've invested a lot in it, as it was an integral part of their strategy with the Xbox One. Backwards compatibility for PS3 was not.
There's no rule that says you have to achieve a price cut in a certain way. Most consoles these days are sold at a $100 - $200 loss from day one, meaning they've already gotten a price cut based on nothing other than not wanting to give it an unattractive price.
What's true for all console price cuts is a lower price for the customer which comes at the expense of the manufacturer in some way, without sacrificing the essential core elements of the console. If you have another definition that applies to all console price cuts that differs from mine (in one sentence, not a bunch of different points and examples), then by all means, share.

However, it seems you didn't get why I said "By whatever name you wish to call it". It doesn't matter if someone calls it a price cut or giving fans more options or whatever else. The point is that Microsoft have so far been in a position where they felt more compelled than Sony to make financial sacrifices in order to bring their customers a lower price. Because that's what the conversation I quoted was originally about, and why people think they're likely to do it again.
I pointed out that unbundling the Kinect came with financial sacrifices, as they've spent millions on R&D and manufacturing deals for it. It's not the same as offering one version with a 500GB HDD and one with a 1TB HDD, which many people seem to be unaware of. They bit a financial bullet in order to get the price to $400. And they further lowered the price by $50 one year before the competition. That's what matters. Then what people chose to call those things is up to them, and can pointlessly be debated for all infinity.

Sorry, but no. My claim is still correct. To be considered a price cut, it must be the exsact same item with nothing removed and the price lowered, permanently.

and yes, price cut does come at a cost to the manufacturer BUT a new configuration with a new price point is not a price cut. Honestly, i dont care if MS pumps out different conifugrations fo the one with lower costs. 

Again, my point is, a price cut is the lowering of the price of an item/sku and that item/sku retains all options/configurations from when it was priced higher.

I'm not even contesting that MS lowered the price of entry to play on the One, which i think you are under the impresion that iam, as I agree that they have cut the price of entry twice to date. And yes, i also know that it is costing them moneyz and i agree with you. All I am pointing out is the erroneous use of the term "price cut".

That is all. 



ils411 on 12 October 2015
GribbleGrunger said:

My take on the situation:

Spencer suggests Sony will drop the price of the PS4 at PGW in order to try and slow sales of PS4

It worked to a degree so Sony decided to drop the price early.

This is exactly what Spencer wanted, which is why he was precise with when.

Sony know this is what Spencer wanted and know it gives him the advantage of a later price cut come Halo week.

Spencer leaves the price of the bundles as is because the price cut only gave Sony parity.

Sony play it clever though and don't actually announce a $50 price drop but rather a price reduction, making sure there's a game with every bundle that's reduced.

Spencer looks at the situation and wonders why Sony haven't gone for the usual $100 price cut. He's now uncertain.

Sony now know that all they have to do to match another price drop from MS is to release a standalone PS4 for $300 and perhaps throw in an older game if need be.

It's a game of chess.

you lost me here.. a price drop is synonimous with price reduction. it means the exsact same thing. 

Sony dropped the price of the stand alone model by 50 and the bundles by 50. so i dont really knwo where you're coming from or what you mean. 



GribbleGrunger on 12 October 2015
ils411 said:

you lost me here.. a price drop is synonimous with price reduction. it means the exsact same thing. 

Sony dropped the price of the stand alone model by 50 and the bundles by 50. so i dont really knwo where you're coming from or what you mean. 

I could have worded that better. Sony haven't called it a $50 price drop, they've called it a price reduction which doesn't indicate an actual number. Look up the PS Blog post and read it carefully. Every bundle that's dropped in price has had a game bundled with it. Remove that game and Sony save the cost of the game. I belive Sony are hiding a $100 drop behind these bundles and will use it if necessary, but if it performs well enough they won't need to.



 

The PS5 Exists. 


ils411 on 12 October 2015
GribbleGrunger said:

I could have worded that better. Sony haven't called it a $50 price drop, they've called it a price reduction which doesn't indicate an actual number. Look up the PS Blog post and read it carefully. Every bundle that's dropped in price has had a game bundled with it. Remove that game and Sony save the cost of the game. I belive Sony are hiding a $100 drop behind these bundles and will use it if necessary, but if it performs well enough they won't need to.


The blog says "we're dropping the price" which means price drop. So, its a price cut.

The main body of the article says the "PS4 system" implying the stand alone model at $349

then there's the "hardware line up" where all bundled and limited edition bundles get a $50 price drop.

Looks like uncharted is a free game sooo...

but yeah, i get your point. taking out the game sony could also drop the price by another 50 or just claim that it was a promo bundle hence the price remains the same at 349.

my only concern is, maybe we're giving ms and sony too much credit. since, you know... they're a bunch of dumbasses.