Now I don't know exactly how relevant this information is, but in Australia, for the last month - MS have been offering a $50 cashback rebate on all 360 models sold. It's not through the retailer - but directly through MS, similar to offers on PC accessories/products they've offered here before. Anecdotally, from retail friends, sales have been through the roof. There's been $298AUD(348 before cashback) 250b/Kinect deals, and for a territory where the 360 launched at $650 (the ps3 at $999! To be fair I paid 695 for my PS1 in 1995) - that's insane. Kinect has a lot of casual buzz (we have a bit of space down here) and
I'd say there's definitely some gift card contribution of some part coming from MS is those deals you've got going over there. Smart move.
It's not a "price cut" - it's better, it's a "value add". Business 101 will tell you, almost regardless of market (cars, hamburgers, TV's, cables, amazing squeegies - you name it) if a price is higher, a majority of the market will perceive this product (somewhat foolishly) to be of a higher "grade" regardless of individual differences. It's the basis of Sony's(and many others) TV marketing worldwide. Slap a "TruColour" or some buzzword on a set, charge $100 more than your competitor, and while you wont attract the entire market, many consumers will see a "prestige" in paying more for your products. The brand has to have some legitimate aura (that companies like Sony, Apple, MS and Nintendo among others) have spent many years building.
So MS has the "Kinect" aura/buzz with their products now - but if they're perceived as "too cheap" , they lose some of that prestige gloss. So they keep the price the same and "add value" through a cashback or giftcard rebate. A lower RRP is a lower RRP, and people just take that as a given once it's set. A limited "cashback" offer or "giftcard deal" not only increases the perceived value in the eyes of the consumer - it urges them to BUY NOW, as THE OFFER IS STRICTLY LIMITED - regardless of whether there's a price cut coming anyway.
Clever Clever Clever Marketing.
All told - it'd be quite the miracle if MS pulled this caper off and grinched PS3''s christmas away, but I thought it best be mentioned about the Australian $50 cashback across all 360 models, as I've seen nothing mentioned on the site (though I didn't look TOO hard) and may factor into Outside USA territories (where is Australia now? I think we were EMEAA but are now ROW) sales estimations/trackings. You may just find that outside USA 360 sales have been undertracked if this (rebates/offers) is the case in other territories - even if Australian numbers are just a drop in the ocean in the bigger scheme of things.
I would expect MS Australia to announce some numbers at some stage regardless, as this is looking (again, from anecdotal evidence, but I know a LOT of retail managers) like MS is having their best Christmas yet down here. And it wouldn't surprise me if Australia is not some rare one-off case.
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