Why the 360 pricecuts will never work.

[Arkk]

noslodecoy said:

Soul_tech10 said:

All of you (or most) believe that the PS3 has had a price cut or two, but it hasn't, its only had clearance sales and hardware revisions.

The reason why the PS3 now is cheaper than the PS3 in 2006/07 is because it has had a major hardware revision that costs less to produce and buy.

it has had no premanent price cuts just like the Wii, not only that but it is still seling more than the 360 that has had up to 5 price cuts this year alone worldwide.

This goes to prove that the price of the PS3 determains its value in the market, same as the Wii, many believe (including me) that the 360 price cuts are all acts of desperation, for instance, Europe is about to see its second price cut in over 4 months, which won't work anyway because the last price cut didn't, and it isn't having that much of an effect in the USA either, which when you compare the first day of the price cut in the USA to the first day of MGS4 being out where the PS3 had a boost of over 200,000 units worldwide, you'll see that there is a major difference.

I admit that i have said the following on other posts before but, Microsoft is creating its very own "Dreamcast effect" where the price of the product is priced too low to convince the consumer that the said product is worth buying, and that it's actually efficient.

In mainland Europe, the 360 isn't respected as much as the PS3, no one likes it (i would know cos i live in italy), for instance, in my local games store which is massive, the stocks of 360 and PS3 are compareable to PS3 and Wii last year respectively, in other words there are no PS3's available once they come into the shop, and the 360 area is full of them, it's also deserted.

Now we can all admit that the 360 has failed and Microsoft is in a state of total desperation, hence the ridiculous number of failed price cuts.

 

Here's a BBC article stating "Sony Offers Cut-Price Playstation".  Your perception of a price cut is nothing more than an exercise in twisting semantics.  Sony had to modify the hardware with the price-cuts due to the costs to produce the console.  Microsoft is much closer to profitibility with their console.

Also, "Dreamcast Effect" seems to be a buzzword these days as I've seen it mentioned alot by people spouting doom and gloom for the 360.  The irony, is that many of these members also seem to agree that a $199.00 PS3 would dominate the market.

The PS2 was priced at $299.00 in the start of 2002.  They dropped the price $100.00 that year down to $199.00.  That was less than 2 years on the market and $100.00 less than it's competition with the XBox at that time (the Xbox later responded). [source]

Please, I'd like to read the spin on how that was acceptable for the PS2 at the time, but a price cut now for the 360 will only spell disaster.

This is a very well put together post and i agree with you.