naznatips on 28 November 2007
| jjseth said: @ Naznatips, I think that the mass market pricing at <$200 isn't the target price point any longer in this day and age. In the past few years people don't even bat an eye when dropping $250-300 on a iPod or $500-600 on a iPhone. I think that people will justify higher prices and understand that it's not going to be under $200 anytime soon and the bigger point for them will be the games for when they want to jump on a certain consoles ship. Right now Sony isn't that far off of MS's price point and could afford to drop the price along with them, if not before MS does their next price cut. With Sony reducing manufacturing costs at a breakneck pace (like any top of the line electronics and especially processor) by improving the process and moving to a smaller size 45 or 65nm compared to the 90nm, costs will drop considerably even from current costs. I think that the target price point for consoles will be anything under or around $250-300 and that will be when you see sales truly take off. I'd expect sometime in the first 6 months of 2008 for Sony to drop the price of the 40gb at least another $50. When it comes to ceilings for the target of mass market, that has increased as wages go up, people work longer, get raises, get promoted, etc and can afford to spend more then they could even 3 years ago. |
I disagree. Look at the PSP. It started at $200 and sold poorly, wheras the DS starting at $150 sold very well. Once the PSP dropped to $170 its sales increased signifficantly. Once the DS dropped to $130 it's sales nearly doubled. Mass Market price is far from $300, and $250 is only on the top edge of it because of a pack in game. The further you get below $200, the more sales increase by an exponential amount.
