360 price cuts might be needed to combat "stagnant demand"

[Skeeuk]

Tigawoods said:

To answer the original question, I think MS could compete if it didnt lower its prices but it would be a competetion where a big release on Week A will push the 360 ahead of the PS3 for Week A while Week B will prolly see the PS3 moving ahead again.  Now obviously lowering the prices especially levels the playing field and makes the 360 a lot more competitive. Lets face it the closer the price of the 360 is to the PS3 the worse sales will continue to be for the 360. The PS3 has more things to offer via hardware than the 360 does. While that has been the double edged sword for them this gen (starting price point 600 USD) it will also help them in the end.

To the point of games this year i've questioned Microsoft's strategy a bit since it hardly released any exclusives and has had a drought imo. While big multiplatform games came out such as GTA, BF Bad Company, Rainbow 6 and others, there have been few 360 exclusives released to get more ppl to gravitate to the system. I think that has caused a bit of a dry spell for the 360.

@Skeeuk Now yesterday you called the 360 price drop desperate which I do not agree with. Now looking at the only real price drop in 3 years it seems to be on track at a regular financial cycle. It may seem desperate that while the the 360 sales have slowed down some that they are just now reducing the price. But how long has the 360 price point been the way it is and the PS3s price point been the way it is? Now it would be desperate if when the 200$ PS3 price drop occurred then 1 month later the 360 price drops. That would seem desperate to me. But they didnt, the 360 kept the same price. Considering what the price points were for each console when the PS3 released, this price drop seems to be directly in stride with what the price point needs to be at to get more sales.

Also with the original 200 USD price drop of the PS3 and and if that price drop of the PS3 happened this year (theoretical but I doubt its going to happen) that would be 2 price drops in two years totaling at least 250 dollars assuming the next price cut will be 50 dollars at least. Cutting the PS3 price now would seem desperate and IMO a bad business move since it sells great as is. Now if the 360 price cut ends up boosting its sales significantly than a price cut along with a possible GOW 3 release in Q1 2009 (theory) would be a great business move without looking desperate as they get the bigger money off the consoles sold during the holiday season and the generate more software/hardware sales during the first of the year.

With these comparisons I do want to know why you think the price cut is desperate Skeeuk. This is not a knock against you or your opinions, just a healthy debate.

youve confused me on that one, 360 is cheaper than ps3, its cheaper-----------------

thats all that matters is that its cheaper, if you have a cheaper console with a more quantity of games then why would you go cheaper still. obviously a even more cheaper 360(isnt so cheap if you put addons onto it) will sell more than what its doing now. but mabey that could only be temporary boost.

in EU the 360 only had a temporary boost, my last 360 i bought was for £159 yes £159 for a 360 with a game, but ps3 still sells more, could it be possible after the initial boost ps3 will still sell more?

i predict after all dust settles ps3 will still sell more, if im wrong im wrong i always welcome to be proven otherwise.