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greenmedic88 on 31 July 2008
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rocketpig said:
greenmedic88 said:

And if the new 60GB SKU was $299, then all other SKUs would have to drop respectively or sales of the $279 Arcade would be completely cannibalized to the point that it would make almost no sense to keep offering them to consumers.

I'm sure most have already noticed that MS and Sony have essentially come up with virtually the SAME strategy; maintain current prices of their various SKUs while adding perceived value to consumers for their "core" SKU (currently the 40GB PS3 and 20GB 360) through additional HDD space while discontinuing the old/replaced SKUs.

Neither one should be particularly eager to drop price at this point, less the other follow suit, effectively canceling out the supposed advantage and losing more money on each console sold.

Not particularly promising to those holding their breath for another string of price cuts all around, but there is still a remote chance it could happen as the holidays approach.

More likely, holiday bundles will be offered instead once again, from both companies at current prices.

MS has a new chipset coming soon. It's likely that they're planning to use that cost reduction to get the price down in America.

They badly need a price cut in the US. It's obvious that the demand is there, they've just dried up the market by only offering one $50 price cut in nearly three years. Get the price down and sales will be way up again.

 

The Jasper MoBo may already be in parts bins, meaning consumers could start seeing them on retail shelves when the 60GB SKUs become available as soon as August.

It won't be an immediate, complete transition though. Recall how Zephyr MoBo units were being used well after the Falcon was introduced until stock had been depleted.

Regardless of whether the Jasper models are cheaper to manufacture, MS is not going to instantly pass the savings along to consumers until it benefits them by resulting in a greater number of sales to offset the price drop and maximize per unit profits.

But I agree 100% that the 360 needs price cuts across the entire hardware line up MS wants to see improved retail sales. I'm curious to see how an Arcade SKU at $229 would move personally.