Squilliam said:
Bitmap Frogs said:
aavidbacon said:
I did economics and I can say that price is the main sign of desire of a product. If the X360 is only 20%-10% above the PS3 in sales, but have at least a 25% price difference($299/399 = 74,9%), based on the average model, than we can say that the PS3 is the more desired. There's also the fact that the X360 sales are shared between the SKU's, but I would bet that if you took out the Arcade model, the sales would dip below PS3's. Let's face it, apart from the US, where people really like the X360, in the rest of the world people are getting the X360 only beacause the PS3 is still $399.
Last year prove my argument. While there wasn't a Arcade model and a price cut, the X360 was behind, after that it was in front. In matter of fact, if it repeated last year's sales up to now, the X360 would be on par or behind the PS3, and the PS3 is down YoY. The X360 is up YoY and in the beggining of 2009 was up almost 20%.
Just take a look at Killzone 2 realease week. The X360 was even down WoW, at 180k but up compared with the similar week in 2008(120k).The price cut and Arcade did it. The numbers shows it. |
Ah, typical economist.
Yeah, the 360 is outselling the ps3. Microsoft will work hard at keeping a reasonable price difference so nothing will change.
Ah since you are such a trained individual, why don't you talk about the costs of staying 3 years + beyond the reach of consumers? Market share, mindshare, all that jazz. C'mon let the buzzwords out!
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What about the substitution effect between the different SKUs? You'll have to estimate how many people would have bought a Premium had the Arcade not been available.
What about price discrimination? Microsoft price discriminates with the Arcade SKU and the Premium SKU. With no Arcade theres no price discrimination so its unlikely that the Premium would still be $300 today.
Then you have to work out the cross price elasticity between the new cheaper (sole) Premium SKU and the PS3 since without the Arcade the Premium would be cheaper.
Wait? You probably can't.
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most of the sells come from the arcade, more than 60% of them.
if a expensive article can sell on par to a cheaper one, shows how the more expensive one it's more wanted.
