Is $500 too much?

[richardhutnik]

sergiodaly said:

richardhutnik said:

 

I read the survey as what is viable for sales, not what people would pay indivdually.  It is highly presumpted for a gamer to presume that people have the same values as they do.  Unless you are arguing people should take up videogaming as a hobby (even giving up other hobbies) because it cheaper, the argument is whether or not a $500 console is too much for people.  The answer to that is very much yes.  Early adopter prices are usually far more expensive than the price of the masses pay.  And the cost of a console is also a cost of a TV to.  And with XBox a subscription, and then factor in the cost of games.  For a console to be worth it at $500 it needs to do more than just a single game.  So your initial cost estimate is much higher.

what i was trying to say is simple... most hobbies cost money to do/enjoy.

gaming is not different and expecting console manufactures to take loss or sell @ manufacture cost is not reasonable but it is what is asked here all the time. Mass market price is smaller than the $500 here is discution, but people that can wait for that price to come aren't into this hobby as others, it depends on how deep you are into the hobby... my thing with gamers is, i see them here asking for console with lots of features, fast menus, good looking graphics, in sumary they want it all but the don't want to pay for it.

To support the current model that the videogame industry has, which is to end up selling millions of copies of games, a $500 price point is not viable.  It can come out at that, but not stay there.  Sure, you can do what the 3D0 and Neo-Geo did, or heck even the PS3 ($599), but you don't move enough consoles to justify the production  costs of over $50 million to get a game done (including all costs).  It just is not sustainable.

A think about people is they want a LOT of things.  That doesn't mean they will open up the wallet and pay for it.  This is PARTICULARLY true in this era of sluggish economic growth and most people looking at wages not keeping up with inflation.