yo_john117 said:
What a petty post.... Anyone who actually feels down or beaten up over something like videogames is just sad. |
I think he was exagerating. I'd argue anyone on this website is sad. But I'm apart of it so I say nothing.
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That third digit is a big psychological barrier. I don't think $119 will sell especially better than $150.
If $119 really is their planned MSRP, they'd be better off bundling it with Dance Central (the closest thing to a killer app yet shown) and charging $149.
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| Reasonable said: What I notice floating around is: 1 - MS is clearly holding back on deciding price and multiple options seem to be getting considered 2 - MS has clearly stated they want to try and keep everything profitable now 3 - MS desperately wants to push their console out into broader demographics and compete with Wii 4 - MS may be sitting on higher than preferred manufacturing costs, with changes already made to reduce Kinect hardware components 5 - MS 360 sales are predictably flattening (5 years old after all) and they want to try and boost interest and are using Kinect linked to the new model (designed to better support Kinect) almost as a re-launch
The only likely scenario I see right now is MS is torn between selling Kinect at a price which may well be at cost or even a loss (because there are plenty of clues the cost of the thing is higher than they'd like to make) to drive the sales and market penetration they want or pricing higher to make it a profitable peripheral but potentially harming market penetration and growth (because there are plenty of clues they want to keep everything profitable around 360 right now). I think in the end it will come down whether they final push it as more of a platform or a peripheral - my guess is that they might well go with a lower price in the end and eat margin for the sake of marketshare : but reluctantly. If they do open at a higher price and sales are sluggish I also expect them to quickly decide to sacrifice margin as well. Sony with Move are probably in a slightly better place regarding cost/price as they seem to be very much positioning the device as a peripheral and its based on well established tech now - on the other hand that strategy normally results in weaker sales and they do seem to be in danger into falling into the 'too many options' trap with the multiple configurations around Move. |
Well they have three different major groups of consumers and Microsoft as a monopolistic company is very familiar with price discrimination.
You have:
A. Unengaged people -> They have to offer the lowest price here.
B. Engaged Core -> They may not be interested specifically in the casual games and they want to pick what they get.
C. Engaged mainstream -> Bundles of games are the order of the day.
They can easily offer group A a cheaper console price bundle. They already save ~20% on store margins in a bundle with hardware so something like a $249 Arcade with Kinect and a game would work great for this group. Group B wants to pick the game so they can offer the interface for say $89 naked for the core who already own the console and for Group C they can offer a pack with a couple of games Kinect bundle for $119.
They can push it both as a platform as well as a peripheral depending of course on how they want to price it. They can also price the bundle high enough as to prevent people from rebuying their console when they don't have to and low enough so that they won't scare off people with a price which is simply too high.
In terms of profitability you have to consider it as a platform for all intents. This is because Kinect WILL help them push more software/Live content than they would have otherwise achieved without it and help push their $99 Xbox Live Gold family passes for instance. If they can move even 3 Million Gold subscribers up a tier with a family pack it could represent over $100M a year in extra Gold revenue for instance on top of any extra content and games they sell to a wider family audience.
Tease.
Since this was announced LAST yeear, I've been saying $119, JUST like the WiiFit. At this price, the thing will sell sell sell, especially given the amount of ads that will promote it. I think it will push 3-4 million during the season, and it will be a hot item for gift givers.
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whoooa!!!!
people need to get over the fact dance central isnt bundled, its not first party, so unless MS buys ubisoft it aint gonna be bundle on now and every kinect in the future. MS wouldnt make as much money as they would otherwise.
I said this in another Kinect thread awhile back: I used to think Kinect was expensive(and it stiill pretty much is) but if people drop $100 or more on a rockband/guitar hero pack why not spend money to get a gaming peripheral for around the same price that will come with a gaming library dedicated for it alone(added more thought in this post)
EDIT: if the price of Kinect does drop it will most likely equal more sale for Kinect.
btw: how much does Kinect cost MS to make?
| AussieGecko said: people need to get over the fact dance central isnt bundled, its not first party, so unless MS buys ubisoft it aint gonna be bundle on now and every kinect in the future. MS wouldnt make as much money as they would otherwise. |
Dance Central = Harmonix = Electronic Arts ^^
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iWarMachine said:
|
well thats even less likely so my thought persists... in fact if its EA its even more likely they will somehow make it multi console... EA have something against MS lol
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