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withdreday said:
Squilliam said:

Someone who buys a console nearly 7 years after release isn't going to buy as many games as a person who bought his console 3 years after release simply because the system is nearing obsolesence. They obviously aren't big gamers otherwise they would have bought the console already, wouldn't they? So another strike. If your console is making $100 on a $200 console, cutting the price $50 would require you to double hardware sales in order to increase profits but no $50 cut has ever doubled sales.

More people buying the console means more people paying for Xbox live, etc. And most of the new buyers could also be people who only owned the playstation and Wii and want to experience exclusives titles like Gears of War and Alan Wake. With big time exclusives coming, a price cut couldn't hurt.

Theres more to price than simply sales. They have to consider overall profit, brand perception and logistics. Why should they kill their margins for the sake of marketshare in an effectively dead generation? Why not expand their subsidised Xbox 360 offering and make even more money instead?



Tease.