Xbox 360 will plummet without price cut

TheSource

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TheSource on 24 July 2010

Pachter knows they won't plummet - but I agree a small drop is likely. Computer & Videogames is quite possibly one of the most misleading sites on the internet for this type of information (see headline vs. comments).

X360 Shipments:

January to June 2009 : 2.9 million (1.7m shipped in Jan-Mar, 1.2m shipped in Apr-June)

January to June 2010: 3.0 million (1.5m shipped in Jan-Mar, 1.5m shipped in Apr-June)

Personally, without a price cut, I would have expected X360 shipments to be about 4.2m (down from 5.2m in Oct-Dec 2009) in Oct-Dec 2010 if Kinect didn't exist. But since they'll advertise that and create some interest for it, shipments will probably be 4.8m-5.2m.

Its a bit of shame they don't seem to be cutting price, because it probably means the maximum value for X360 hardware shipments in a year will be 11.2m during April 2008 to March 2009. They're only off 10% from that peak, a price cut could have gotten them to 12m-13m in a year.

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greenmedic88 on 24 July 2010

TheSource said:

Pachter knows they won't plummet - but I agree a small drop is likely. Computer & Videogames is quite possibly one of the most misleading sites on the internet for this type of information (see headline vs. comments).

X360 Shipments:

January to June 2009 : 2.9 million (1.7m shipped in Jan-Mar, 1.2m shipped in Apr-June)

January to June 2010: 3.0 million (1.5m shipped in Jan-Mar, 1.5m shipped in Apr-June)

Personally, without a price cut, I would have expected X360 shipments to be about 4.2m (down from 5.2m in Oct-Dec 2009) in Oct-Dec 2010 if Kinect didn't exist. But since they'll advertise that and create some interest for it, shipments will probably be 4.8m-5.2m.

Its a bit of shame they don't seem to be cutting price, because it probably means the maximum value for X360 hardware shipments in a year will be 11.2m during April 2008 to March 2009. They're only off 10% from that peak, a price cut could have gotten them to 12m-13m in a year.

I'm guessing that MS was willing to take a small hit in overall sales for the benefit of keeping an extra $50 on each Kinect kit/Xbox SKU (presumably in profit).

If the difference was 800k, that's $40m in lost revenues (profits) due to a $50 price cut. $90m if the difference was 1.8m units. Additionally, this wouldn't include lost revenues from individual Kinect kits being sold at $99 as opposed to $150.

Even if the overall revenue generated through sales was roughly the same or even slightly less, profitability would still be taking the big hit, which MS may currently be weighing as more important than overall revenue and number of units sold.

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Seece on 24 July 2010

TheSource said:

Pachter knows they won't plummet - but I agree a small drop is likely. Computer & Videogames is quite possibly one of the most misleading sites on the internet for this type of information (see headline vs. comments).

X360 Shipments:

January to June 2009 : 2.9 million (1.7m shipped in Jan-Mar, 1.2m shipped in Apr-June)

January to June 2010: 3.0 million (1.5m shipped in Jan-Mar, 1.5m shipped in Apr-June)

Personally, without a price cut, I would have expected X360 shipments to be about 4.2m (down from 5.2m in Oct-Dec 2009) in Oct-Dec 2010 if Kinect didn't exist. But since they'll advertise that and create some interest for it, shipments will probably be 4.8m-5.2m.

Its a bit of shame they don't seem to be cutting price, because it probably means the maximum value for X360 hardware shipments in a year will be 11.2m during April 2008 to March 2009. They're only off 10% from that peak, a price cut could have gotten them to 12m-13m in a year.

In actual sales, where do you see 360 being at the end of the year?

And what do you think of this?

http://gamrconnect.vgchartz.com/thread.php?id=113257&page=1&str=776761854#

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Slimebeast on 24 July 2010

TheSource said:

Pachter knows they won't plummet - but I agree a small drop is likely. Computer & Videogames is quite possibly one of the most misleading sites on the internet for this type of information (see headline vs. comments).

X360 Shipments:

January to June 2009 : 2.9 million (1.7m shipped in Jan-Mar, 1.2m shipped in Apr-June)

January to June 2010: 3.0 million (1.5m shipped in Jan-Mar, 1.5m shipped in Apr-June)

Personally, without a price cut, I would have expected X360 shipments to be about 4.2m (down from 5.2m in Oct-Dec 2009) in Oct-Dec 2010 if Kinect didn't exist. But since they'll advertise that and create some interest for it, shipments will probably be 4.8m-5.2m.

Its a bit of shame they don't seem to be cutting price, because it probably means the maximum value for X360 hardware shipments in a year will be 11.2m during April 2008 to March 2009. They're only off 10% from that peak, a price cut could have gotten them to 12m-13m in a year.

Exactly. 13 million would have been possible.

I think they should have cutted the price to please their fans. The most important thing for us in this generation is to beat Sony and secure 2nd place.

Xoj

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Xoj on 24 July 2010

Seece said:

Up over 8% YOY so far

I still love you Pachter!!!!

it includes clearance sales.

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Seece on 24 July 2010

Xoj said:

Seece said:

Up over 8% YOY so far

I still love you Pachter!!!!

it includes clearance sales.

eight percent

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welshbloke on 24 July 2010

I am holding out for the price cut which I was expecting before Xmas to coincide with the Kinect launch to stimulate demand but maybe I am wrong.

The problem is I want Kinect and I want my shinny black box so even if the price does not drop I will own both before Christmas that is just the way it is.

I am a slave to a well orchestrated marketing campaign.

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(Welsh(Folk) Living Beyond Borders)

Winner of the 2010 VGC Holiday sales prediction thread with an Average 1.6% accuracy rating. I am indeed awesome.

Kinect as seen by PS3 owners ...if you can pick at it ...post it ... Did I mention the 360 was black and Shinny? Keeping Sigs obscure since 2007, Passed by the Sig police 5July10.