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dcIKeeL on 24 May 2009
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yo_john117 said:
Megadude said:
yo_john117 said:

Well what MS can do to counter Sony if they drop the price of the PS3 is drop the price of the 360...quite simple actually.  360 has more than enough games coming out this year to satisfy even the pickiest gamers.   The chances of the 360 dying are about as good as the chances of the PS3 dying...which is virtually none at all.

 

 

 

I'm impressed that you made a pretty non biased post here.

The 360 won't die. There is a good chance that the PS3 will outsell the 360 for a year if the fabled $150 arcade doesn't come to fruition. Even though MS has loads of cash, I honestly feel like they don't want to blow another few billion on another console as the 360 has finally started making some money for them. Furthurmore, so long as their current console is many times more powerful then the current market leader, a spec upgrade is not nessisary.

Both the PS3 and the 360 can sit back and Sony and MS don't even have to start thinking about new systems as long as Wii sits at the top of the hill.

Well i actually try to be non-biased most of the time...sometimes i succeed sometimes i fail miserably, especially when Halo is brought up I tend to get pretty defensive lol.                                                                                                                                                                                                                  I actually believe that MS could lower the price of the 360 again very soon and at least break even if not make a small amount of profit on each console sold.                                            

 

 

 

 

 

I agree the 360 can have a price cut but i differ in that i'm sure they can and will. They are at a very comfortable profit margin right now with their hardware. And if push comes to shove the 360 can really slash and burn price tags. Why? Well, it's simple first their sku's are very diverse. They have a high end model (hardcore) a mid level model (for the what  i like to call "core" players) this is where the teens and hardcore jids might turn to. And lastly the mass market low level model. This allows them much flexibility in how, where, and by how much they cut prices. They can cut the price of the entry model by $50 and break even or be slightly below profit margin. Cut the pro model by $70 and break even while further increasing perceived higher value. And leave the elite the same as mostly the hardcore gamers look at that and they have no issues shelling the money if they want it. Basically the sky's could offset each other and remain fairly profitable while probably dramatically increasing sales. Secondly, but most important is this: Microsoft managed to get the public to think they have the best value or most bang for your buck yet actually have the lowest value and make a whole lot of money from peripherals, accesories and their online content. Think about it. Hard drives, play and charge kit, network adapter, gold membership, extra controllers, extra headsets, online content such as netflix, tv shows, XBLA etc. The fact that sony includes play and charge kits and built in network adapters only makes more 360 owners buy these peripherals that you know they want. This is where microsoft truly makes their cash. This of course not counting software. Which is down right scary. The only reason the profit hasn't been mind boggling large is because it was offset by the excessively high failure rate it's been plagued with. But thats beggining to be yesterdays news and microsoft earning power is gonna really take off. Keep in mind rumors are getting stronger about the 32nm chipset.

Idk if the perceived value strategy was planned or accidental but either way thats smart marketing and pricing set up by Microsoft although it is kinda shitty for us. If it was planned...WOW, pure genius.