HappySqurriel on 19 December 2007
| eugene said: Price cuts come next year probably. There is also something called perceived value. If they lower the price below or on par with the Wii when it first launched, people would think that they are equal in power. Also, people will think that the PS3 is much better than the Xbox 360. You cant depreciate the value of your system too quickly. Also, they had virtually no casual games last year to appeal to casuals. It would only have cost them money without much benefits from the casuals that the Wii appealed too. |
It's not about matching Nintendo's price because (realistically) Nintendo probably wouldn't have sold the Wii at $250 if the XBox 360 Priemium was $300 ... Microsoft launched the 360 a year earlier than their competition to gain the early mover advantage; what that is, is a lot of small strategic advantages:
- Larger established userbase
- Larger (better) game library with more budget priced games
- Earlier price reductions
Microsoft's pricing strategy (on both the console and its games) has effectively prevented them from taking advantage of the benefits launching early provides.
