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Forums - Sales Discussion - How will Sony respond if the Xbox 360 sees an $100 price cut this summer?

brute said:
Rock_on_2008 said:
$50 price drop across the board in NA would be more reasonable. $100 price drop is too much and would result in losses.

 

 i think sony said that they wont drop the price this fiscal year

I was referring to the XBox 360's. A $50 price cut would be more reasonable for MS on the 360's. A $100 price drop is too much.

 



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Sony will do a price cut also, in the EU. 50Euros or £50, lowering it to the Price of the 360 Elite price. in the end, because of exchange rates this is still above the price of the PS3 in the US. And they might just increase EU sales to counter any effect the price cut has in the US.

(£300 at the moment = $590, so £250 = $492)



Hmm, pie.

The price of video games and consoles are higher in PAL region because the video game market over there is not as big as the American video games market.



The price of video games and consoles are higher in PAL region because the video game market over there is not as big as the American video games market.


And because of that all consoles are so much cheaper in Japan. The thing is you charge as much as you can get from customers. And the dollar went from 1.2 Euro to 0.66 Euro in 4 years. So effectively things are more expensive in Europe now but customers do not feel that because they pay the same price they did 4 years ago.



The Fury said:
Sony will do a price cut also, in the EU. 50Euros or £50, lowering it to the Price of the 360 Elite price. in the end, because of exchange rates this is still above the price of the PS3 in the US. And they might just increase EU sales to counter any effect the price cut has in the US.

(£300 at the moment = $590, so £250 = $492)

 

As usual, people who convert currencies forget to take taxes out of the price.

This is how you do it:

VAT in UK - 17.5%

£300 / 1.175 = £255 (price before tax is applied)

£255 = $502

That's a pretty big difference in price. There are many countries where taxes are higher (Scandinavian countries - ~25%, Portugal = 21%, etc)

USA prices are before taxes, so to do a fair comparison you must eliminate taxes from European prices too.

PS: If I had a penny for each time I've written a post like this, I'd probably have enough money to pay the VAT of every product I'll ever buy.

 



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A 100$ price drop on the 360 will not happen. What we will get will be a 50$ pricedrop for madden, just like last year.

As for the ps3, I kinda doubt they'll move the price this fiscal year. Sony projected 10M units sold which indicates no price cut and on top of that we recently learned that they lost so far 3 billion $ exclusively on the difference between manufacturing costs and selling price.

Both consoles don't have any chance at leadership, so they'll lay it low and play a gamecube generation: be smart, moderate growth, stay profitable.





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

NJ5 said:
The Fury said:

USA prices are before taxes, so to do a fair comparison you must eliminate taxes from European prices too.

See, now this, I did not know. So, as usual, there is a valid reason why taxes are left in.

So you lot pay $400 before taxes? Yet we pay $500 before taxes, that's still $100 whichever way you look at it and even £50 price drop is still above $400 as it's a price drop on the RRP which includes taxes here. What is your tax rate? So shops on highstreet or internet, and Sony when they annouce the RRP say it without taxes in the US but with taxes in PAL?

 



Hmm, pie.

There is a rumor floating around that EGM is going to report that the XBOX 360 will be receiving substantial price cut accross all skus this fall. Assuming the rumor to be true, I don't think they would call $50 substantial. Microsoft is nearing 3 full years into their console's life and it is time for a substantial price cut in the U.S. In reality, MS should release a new 360 SKU that has built-in wifi and a larger hard drive standard. The price tag should be $299... The new sku should be smaller, quieter, and have the power supply internal. It should come with a 3 year warranty and customer service should offer a "hot swap" like Nintendo does with the Wii where they will express you a new/refurb console. That program is great because as long as you return the defective unit within 30 days, there is no charge and you are back up and gaming in just a handful of days.

That said, that would be forward thinking and I've lost the ability to believe MS thinks that far forward. If they did make this kind of move, Sony would have to react. Period. Anything less and I believe Sony will sit back and see how it plays out as the built-in Blu-Ray will most certainly be considered worth the extra price this holiday season.

The second that a $299 PS3 combo with a DS3 hits the market in the U.S. is the day I march out and buy one so hopefully Microsoft does pull the trigger and Sony chooses to follow.



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Systems I currently own:  360, PS3, Wii, DS Lite (2)
Systems I've owned: PS2, PS1, Dreamcast, Saturn, 3DO, Genesis, Gamecube, N64, SNES, NES, GBA, GB, C64, Amiga, Atari 2600 and 5200, Sega Game Gear, Vectrex, Intellivision, Pong.  Yes, Pong.

I'd like to see Microsoft phase out the arcade and limit their offerings to just two SKUS with a Premium at $199 and Elite at $299 (Built in Wifi and bigger HD). That'd be a strong offering for at least another year, but doubt we'll see it.

This fall at least a $299/Premium/Game although mroe likely they'll finally hit the $249 Price point.



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