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Hawkeye on 03 October 2008
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Million said:

There's alot of reasons why the marketshare increase from a 360 price cut would nulify any benefit it could give to the PS3 but because that has nothing to do with this thread I won't go into too much detail about it. The recent price drops of the XBOX 360 has pretty much put it in the affordability ranges of around 60-85% of households in the western world (estimation) , it can be bought for as little as £99 ($198) which is dirt cheap in the Uk (and around about the cost of a PS2) ,also taking into concideration the current economic problems pretty much everyone is having to deal with and we have a strong case for a XBOX 360 price cut , right ?


Well possibly wrong , when Microsoft drive down the price of the XBOX 360 they effectivley drive down the perceived value of the XBOX 360  , in the UK it launched with a price tag of £300 and can now be obtained for as little as £99 that's a 66% price drop in 3 years ! and taking into concideration the fact that the Wii is £170 ($340) and the PS3 is £280 ($560) the consumer is probably thing "Wtf " , it is my understanding that a siginifant % of the consumer won't understand that MS are selling these 360's for little or no profit at all so i'm almost positive it'll convince the consumer that the 360 is the inferior /cheaper option to it's rivals , that won't stop it from selling (obviously) but that will adversley affect the image it has.

The PS3 with it's £280 ($560) price tag and the Wii £170($340) are likely to be seen as more premium options for the consumer now and it's almost guaranteed any price cut on the PS3 will have a much larger affect on it's sales than a XBOX 360 price cut , MS has effectivley changed the perceive value i for marketshare in exchange for reducing the perceived value of the XBOX brand.

 

 

Hmm... that may/may not be true for mainland Europe, where if what I have read on the forums is correct, expensive items are "fashionable" Xbox 360 sales have more than doubled in the UK. This "value loss" would be true if this happened over a brief period, but over 3 years? Looks like a deal to me. Remember that Sega Saturn was $400 while PS1 was $300. After 1 year on the market, when Sony cut the PS1 price to $200 (33% in 1 year> 66% percent in 3 years) did consumers "realize" that Sega Saturn was more expensive and therefore a better value? No! They realized that PS1 had better games and a lower price. Now, PS3 isn't in nearly as tough of a spot as Sega Saturn was, but its a similar concept. 360 is not going to be another dreamcast, sorry.