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Hi,

One of the main themes about console sales has always been that with a price cut, more numbers of consoles are sold. I wanted to look at the numbers and see how true that is. While I do agree that a cheaper console would mean that more people would want to buy it, but I always thought that it only attracts new people. I personally thought the number of units sold per month would stay the same. To better explain my view, I thought that even if there were a price cut, the number of units sold would not necassarily change. For instance, if there was a price cut for the xbox360, it would still be selling around 275k a month as it is doing now.

My point being, the only thing that really matters are the games, not price cuts. I have looked at the numbers for Playstation2, PS1, Xbox and Gamecube. I still have not finished my work with the numbers, but I will put up PS2 numbers here. Wait for future numbers. (I'll try to squeeze them in my free time)

 

Here I will put up a chart containing sales and price cuts.

Japanese Hardware
ConsoleAmount of units sold
Months with the same pricePrice (Yen)
Unit sales per monthPrice decrease
Unit sales increase
Ps2 4.75 16 39800 296  
Ps2 2.1 5 35000 420 12.0% 124
Ps2 5.8518
29800 325 14.8% -95
Ps2 0.93 25000 300 16.1% -25
Ps2 3.489 19800 387 20.8% 87
Ps2 6.5715
17800 438 10.1% 51

 

North American Harware
Console Amount of units sold Months with the same price
Price (US Dollar) Unit sales per monthPrice decrease
Unit sales increase
Ps2 10.59 18 299 589  
Ps2 11.62 12 199 960 33.4% 371
Ps2 7.32 12 179 610 10.0% -350
Ps2 12.29 24 149 512 16.7% -98

 

European Hardware
Console Amount of units sold Months with the same price Price (Euros) Unit sales per monthPrice decrease
Unit sales increase
Ps2 8.44 22 500 298  
Ps2 7.85 12 260 654 48% 356
Ps2 8.5 12 199 708 23.4% 54
Ps2 13.81 23 149 600 25.1% -108

source: http://www.scei.co.jp/corporate/data/index_e.html

 

While price cuts do generally increase the number of units sold per month, it doesn't have the effect that some people here think it might. Some price cuts didn't work either and units sold per month actually decreased.

In my opinion it is all about the games. Price cuts wont necassarily work.

Wait for future analysis.