Official Microsoft E3 2010 Press Conference Thread

[thx1139]

richardhutnik said:

thx1139 said:

People still dont get how pricing works when you have existing product.

Cost to produce the existing Elite with 120GB HDD > Elite with 250GB HDD.
Cost to produce the existing Elite with 120GB HDD much > then new Slim with 250GB HDD and WiFi
Cost to produce the existing Arcade much > then a new Slim Arcade without HDD

So if you dont release the new Slim with HDD now you continue to produce a more expensive to produce console. Not smart.

If you release new Slim with 250GB HDD at fall price of say $249 then the current Elites need to go on sale to $199. Arcades to $99.99.  So you release Slim at current price and reduce the other older SKUs by $50

Later this summer when stock is cleared you introduce the Slim Arcade and Skim with Kinect SKUs and lower the price fo the Slim 250GB.

And here is another scenario.

Elite unit comes with Kinect, while the Arcade unit doesn't.

Only problem is Kinect isnt ready.  So the Slims are ready to sell and you want to get them on the market. What do you do?

You start producing them (also so you dont risk production facilities changed over when production needs to be much higher) now and selling them now.