Price cut - When/How Much

[robjoh]

catofellow said: I think everybody is missing some key points. 1. April sales are not like December sales, there is a significant slowdown in April every year. 2. PS3, Wii shortages will no longer be a problem come May. 3. Consumers (like me) are waiting for price cut, if one company cuts its price, the others will follow so people don't wait on the sidelines or buy the other console they see in the news. 4. Microsoft cut the XBOX price in May 2002 before Sony did. Well not really, if you remember Microsoft scheduled a press conference to announce the price cut, and then Sony put together a last minute press conference a day before Microsoft to announce a price cut of their own. Sony did this to act like it was the leader and Microsoft the follower, but in reality Sony scrambled to make the announcement first because they didn't want to allow Microsoft to convey a position of strenght. It was not desperation on Microsoft's part, XBOX was doing much better than Gamecube in the U.S. at the time. 5. Why would Microsoft wait until PS3 is outselling 360? At that point a price cut is too late. Their goal is to stay ahead of Sony, not let Sony dictate their moves. A Microsoft price cut forces Sony into greater losses. Isupply estimates that XBOX premium costs $323 as of November. Microsoft can afford at least a $50 dollar price cut. http://www.isuppli.com/news/default.asp?id=6919[/quote] First of alll, pardon for my bad english it is not my native tongue. I think you miss some key feuters in a price cut. 1, If microsoft did a price drop today it would disapere in media or be seen as a sign of failure. The xbox360 is doing fine for the moment it has started to sell some in japan, of the next-gen machins it is leading in USA and Europe. In USA it is outstanding. 2, Sony do not have the room for a price cut, the ps3 is simple to expensiv. I do not think it need one either. Sure it is a expensive kit but with the production problems they have and that en EU launch is first in mars I do not see the big problem, and most of all their old cash cow ps2 is still selling wery well. Here in Sweden it outsold both the Xbox360 and Wii with an order of three to one the week before christmas. Sony will most probarbly use the ps2 as there "party" machin for at least one more year. A price drop now is unnecessary because the ps2 is going so well, thank Guitarr hero, buzz and singstar for that. 3, Nintendo has absolut no need for a price cut now. They are selling everything they can produce. And if we should be honest they only have three good games: Wii sport Zelda and Red Steel. Mayby Wario but it isn't a systme seller. How many Nintendo fans do you think will jump over to Wii when Metroid, Super Mario Galaxy and most of all SSMB is coming out. In Japan, Wii will probarbly be selling out simple because people that want a DS will by a Wii also. Here in Sweden there is so many pre-booked system now that some internet stores are talking about 2-3 months of delivery time. Nintendo has stated that their goal of delivering is what the can produce. So I don't see that they need a price cut yet. Actulay some stores is selling the Wii for more than the Xbox360 now. Summing it up I would say that neither of the companies need a price cut. Microsoft is selling well in both USA and EU, is now starting to sell some consols in Japan. Nintendo and Sony can't delivere anyway so why should they care? And as a final point here in Sweden is the Xbox360 premium already costing half of the sony ps3 launch price (3200 SEK against 6300 SEK, 7 SEK ~ 1 USD). A price drop wouldn't change a thing.

 

 

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