PS3>Wii In Japan this Week, DESPITE Wii Price Cut - thoughts!!??

[Avinash_Tyagi]

ViolentPhlegm said:

Avinash_Tyagi said:

ViolentPhlegm said:

Avinash_Tyagi said:
@ montana, read what ioi wrote, that is all

I was just about to suggest that you should read some of ioi's posts.  ioi says price cuts move hardware.

You are alone in your opinion that they do not.

  Did you read what he said, he said that it was the slim, not the price cut that resulted in the large sales

The massive PS3 spike was DUE TO THE PS3 SLIM MODEL, not purely from a PRICE CUT. If PS3 had just had the price reduced it would have done more like 65k - 55k - 50k - 45k - 35k or whatever. OVER HALF of the intital spike was from people buying the new model.

So yeah the Idea that price cuts drive sales is not supported, first off PS3 sales had dropped off for weeks in Japan

http://vgchartz.com/hwcomps.php?cons1=PS3®1=Japan&cons2=PS3®2=Japan&cons3=PS3®3=Japan&start=39873&end=40083

from the low 20K's to the low thousands, so if it had been only a price cut, most of those sales would have just been people who would have bought it anyways, thy just decided to hold off until the price cut

 

Exactly.  "Not purely from a price cut".  ioi says the spike was a combination of the price cut and hardware redesign and gives us some "whatever" numbers that suggest the PS3 would have lifted to 65k from its 10k baseline and then continued to sell well for at least 5 weeks without a hardware redesign.  (I know these are just off-the-top-of-his-head numbers, not calculated but still...)

Look at ioi's graphs showing price cut effects.  They are meant to illustrate the difference between a price cut with hardware redesign vs a price cut only.  When there's a hardware redesign (like PS3 slim) with the sales cut, there's a huge spike followed by an immediate decline but still elevated sales.  When there's a price cut only, there's a milder increase but it results in a sustained lift for a long time.  This is why ioi expects Wii sales to increase next week.  It's because of the price cut and historical data shows that this usually means an increase in Week 1 followed another increase in Week 2.

You have ridiculously been arguing that price cut has NO effect.  No one believes this but you.  You also seem to think that everyone else thinks that the PS3's increases were solely due to the price cut.  No one believes that either.  Everyone else believes that there is a combination of factors (but may disagree on how much each factor contributes) and if you'd calm down and read their posts carefully, you'd see that.

You would do your credibility a favour if you did not cling to absolutes in your arguments.  There is a world of difference in saying something has little effect to saying that it has no effect.

  Except what you're missing is that people were delaying their purchase, enough to account for any boost that would have occurred from the price cut, so you wouldn't get any new purchases, just delayed purchases with a price cut only, that's why I'm saying it wouldn't have any effect, because all it did was delay people, the new Sku was what generated new sales