Xbox 360 Vs. Playstation 3 2012 - *February* Update

[Reasonable]

nightsurge said:

kowenicki said:

drkohler said:

kowenicki, Seece said:

I said a price cut in EUROPE would have helped.... you then quoted a rack of US price offerings... those US price cuts are irrelevant to the EUROPEAN sales performance.  Get it?

Look, this is a site that has visitors from all over the world. Like it or not, the US $ still is a currency everyone can relate to, so quoting local prices in US $ rather than local currencies is a simple convenience for all readers. Maybe I am thinking too fast for you (and your alter ego Seece as well), or you are intentionally playing dumb bringing up a straw man "US price cuts".

I am not going to discuss manufacturing prices (again and again and again over the years, particularly with you two). I assume there are readers knowledgable enough in mass manufacturing/electronics to see the simple points I make. There is a peculiar group of readers that apparently are not, and feel the need to divert the discussion (particularly when it comes to manufacturing and production costs of XBoxes, like there is some unexplainable miracle looming behind that particular gadget. So to sum up: For the first group, it would be simple to reproduce the calculation that a $229 shop price XBox360 250G Kinect + Software + Live) price is sold at a loss to MS, while the latter group will simple go "Lalalalala".

What in the name of god are you rambling about... ?

Bang on about manufacturing prices all you want...  the resultant facts of revenue v costs are in the interim and final year financial for all to see.  I will take those facts over your bob-the-builder estimates every day of the week.

Go find MikeB, you two will get along nicely.

Where in the world did you see a $229 250GB Kinect bundle? The cheapest those have been in the US is $299 in very limited timeframes for holiday deals. Regardless, what you fail to realize, drkohler is that MS does not cause these price reductions, it is the stores/businesses. They are the ones that take the losses. MS may give them some slight reimbursements, neither of us can know for sure of that, but it would be the stores taking the major front of the loss.

Also, where are you getting these US prices for PS3 and 360? The PS3 price has not increased, and the price for 360 you listed were limited sale prices, not current retail price.

US Prices are as follows:

PS3 - $250, 300, 350
360 - $200, 300, 300, 400

I have to say I doubt that.  Why on Earth would the retailers take a hit for MS?  They don't need to.  It's much more likley these are vendor funded promotions with MS taking the bulk of the hit.  In consumer electronics the retailer very rarely takes the bulk of the hit for deals like this.  When you see Sony TVs promoted Sony is paying for it.  When you see Samsung TVs promoted Samsung is paying for it.  That's the way it is normally.  The retailers would rather sell less 360s for more profit margin than more for less.  I doubt MS is paying for the whole shebang of course - but 50/50 split is the normal start point.