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Geldorn on 13 September 2008
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Squilliam said:
Geldorn said:
Squilliam said:
Million said:

Unfortunatley that is a series of weak sources and approximations , in reality you have no idea how much Microsoft their consoles cost neither do you know how much the PS3 consoles cost currently.

Whatever the case Microsoft aren't going to be making alot of profit of these consoles if they are actualy making a profit. Microsoft continues to drive down the cost making it look like the cheap option and continues to support the PS3's image as the higher spec , premium console.

it apears the Microsoft has ditched the pursuit of profitability and is instead gunning for marketshare .

 

 

Weak arguments huh? Isuppli is actually a credible source.

Also if a chip is 50% smaller it likely costs ~50% less to make. (Assuming similar yields) which in this case is true as the process is mature.

If people know that an Xbox 360 plays games exactly the same as a PS3 it actually makes the PS3 look overpriced rather than the Xbox 360 looking cheap.

Btw - The Xbox 1s image as higher spec/reliable/bla didn't help it.

 

iSuppli are analysts. They have no more credibility than any other analyst firm, like say the one that hires Mr. Pachter, widely known his 'super-accurate' reports.

Your other argument works both ways - people are seeing the Xbox 360 as a cheap toy, but they are also seeing the PS3 as expensive. In Europe (where this price cut is taking place) it seems the choice has already been made.

 

To recap the year in Europe so far:

Wii sales >> PS3 sales >> Xbox 360 sales

PS3 base price >> Wii base price >> Xbox 360 base price

 

Seems to me that the Xbox 360 being cheap is not helping it in the least.

 

Bahahahahahha! If they weren't credible then they wouldn't be in business. Isuppli helps companies bid on contracts by telliing competing companies the costs of components. They would actually have a pretty good idea what a capacitor costs and they surely can estimate with a good deal of accuracy the cost of the silicon and the manufacturing costs given the complexity of the board. <---> The flipside of the coin is if people more likely see the PS3 as 'just' an Xbox 360 + Blu ray drive for movies then they will say you're paying xxx dollars for blu ray or if you don't want it you could pay xxx price to get the same capabilities.

 

Ok, iSuppli is reasonably accurate - though definitely not as accurate as you'd have them be, they're analysts, not people with the actual BOM price list. (And IIRC MS and Sony both shot down that list as being inaccurate)

On the other hand, the end prices for the 360 you've named where well, guessed up by you and have no credibility whatsoever. See, those $180/$230 figures are basically pulled out of thin air by someone who wants nothing more than paint an as optimistic picture for Microsoft (being a self admitted huge 360 fan) as possible. They're based on nothing more than a hobbyist re-evaluation of an educated guess made by an industry analyst. Not actual real world values.

Or in short: the $180/$230 figures are backed by fantasy and nothing more. Nice try, though.

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Besides, in the real world my overview of who buys what in Europe is still valid, irrespective of whatever iSuppli figures you throw about.

Trying to spin that one away is not going to work. The Xbox 360 is already the cheapest console and it still doesn't manage to outsell any of it's competitors, including one who is over twice as expensive. Clearly price is not the key factor for low Xbox 360 sales in Europe and clearly lowering it even further is not be likely to have long term effects.