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Forums - Microsoft - 360 In The Drivers Seat to Start Console Price Cuts This Year, says Pachter

yo_john117 said:

Yeah its about time they make a pricecut anyhow.

Here's what I think the price cuts will look like.

Wii - $149

PS3 120GB - $249 

PS3 320GB - $349

Xbox 360 Arcade - $149

Xbox 360 Arcade Kinect bundle - $249

Xbox 360 250GB - $249

Xbox 360 250GB Kinect bundle - $349

Kinect - $119

You should be hired by all 3 console companies and put in charge of their price cutting departments...



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disolitude said:
yo_john117 said:

Yeah its about time they make a pricecut anyhow.

Here's what I think the price cuts will look like.

Wii - $149

PS3 120GB - $249 

PS3 320GB - $349

Xbox 360 Arcade - $149

Xbox 360 Arcade Kinect bundle - $249

Xbox 360 250GB - $249

Xbox 360 250GB Kinect bundle - $349

Kinect - $119

You should be hired by all 3 console companies and put in charge of their price cutting departments...

Heh that would be a hell of an easy job!



yo_john117 said:

Heh that would be a hell of an easy job!


You'd be in charge of  slashing prices and making sure profit is made.  I think you'd become an old man in a few months trying to do this for Sony, especially with NGP coming up... :)



Seece said:
snakenobi said:

all will cut price this year

 

this is how it will look

 

PS3 $199

360 $149

WII $149

 

KINECT $99

MOVE $69

Hmm, Sony cut $100 late 2009, another $100 in 2011, that's $200 in the space of 24 months, hefty ... their PS division is barely breaking even at this point, and with PSP2 coming out (and psphone) we don't know if they're making a loss on those products. It could very well be a $100 cut for PS3, but Sonys financials would be hurting.

Wii, yeah that seems about right, they have no upper model to make good revenue on like the 360 and PS3, so slashing to $99/$129, although they could afford it, would leave them with little profit/revenue on HW, essentially throwing away money. A $50 cut would be effective for them. Like pacter said, they'll likely cut around the launch of the next Wii.

360, who knows, MS can afford a hefty cut, they're division is profiting very well right now, say they cut in September, it'll have been 3 years since they went $250 > $200. We could well see

Arcade - $129
Arcade Kinect bundle - $199
250G - $199
250G Kinect bundle - $250

Kinect could get $20 knocked off, not $50 though, selling far too well for that.

so what if its $200 in 24months,they did it the last time around and if they don't want to lose badly they will have to do it.

and how can you say they are "JUST" breaking even.SONY has been making a profit since Q1 2010(JAN-MAR),they started making more profits since new RSX version went into production in Q2 2010(APR-JUNE).they are more than breaking even.They should be getting both RSX and CELL reductions again very soon plus other costs reducing.They can cut the price.

and as for PSP2,they do the loss at platform launch with all their systems so its nothing new for them and as for PSPHONE,that is nothing.its just PSP being integrated in other phones.their is no way they are making a loss on that.they will make heavy profit through software on PS SUITE.

Wii will do fine with $50 before Wii NEXT in 2012

360,MS can affod a helft cut but they don't need it.they will do fine with a $50 cut

as for Kinect,yeah selling pretty well but it won't be the same cool new commodity next holiday season.they can cut $20 but that doesn't make any sense as its a very small cut.$99 would sound alot better than $129 and sales would be easily maintained then



BHR-3 said:

who ever cuts early will be at a disadvantage best time to do it is between sep-nov

 

@ all saying sony wont go to $199 (even though i dont see it i think its still possible) i believe thats what ya'll were saying in the beginning of 09 , you have no idea how much each ps3 currently cost to manufacture or what it will cost say 6 months from now all we know is that at the beginning of last year they were profiting of em

Dude this isn't the Fast and the Furious. Hitting that NOS button early doesn't mean Vin Diesel wins and then mocks you at the finish line. To be honest Greenburg looks most like him, 360 win confirmed?!

@ You who is saying we don't know the manufacturing costs, you also don't know the manufacturing costs and you certainly don't know the other costs they are paying either or even the total cost of distribution. Look at the chart and tell me how they have been profiting greatly from their PS3 empire. At least justify how they would be able to pay for a $100 price cut.



Tease.

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Gojimaster said:

Snakenobi, there is no way that Kinect will have a $50 price-cut this soon.  Not going to happen.

M$ is going to have a very easy time keeping above last years numbers until the 1-year mark of when they released the Slim.  360 sales were in the toilet last year until the Slim was released.  After that, 360 dominated.  With a price-cut, 360 may be able to stay even or slightly above last years numbers. 

PS3 desperately needs a price-cut in NA.  Hopefully all these exclusives spike PS3 sales, but it appears that America is pretty decided that they prefer 360 at this point. 

Fudge-Pacter still seems to think the Wii is going to release an HD console within a year so which is why he can't predict whether there will be a Wii price-cut this year.  That is sad.  If the Wii was down 25% and still beating the 360 when it was up 40% there is no need to release a Wii 2 yet.  I don't know why Pacter doesn't get this... years sales and stocks might go up, but it would be a huge risk for Nintendo and could spell disaster if they release too early. 

MS is going to have an easy time until June but will Kinect be the same new cool device,no it won't as its been on the market for one year by that times so they will need a booster and that they can easily provide.

Pachter doesn't think that a Wii HD will come now,he has said that Ninty will try to do something else and compete directly with PS4 and 720



just look what happened to the 360 last yr relaunching in june instead of sept or later, Dec npd only 600k above the ps3 and most likely ps3 outshipped it every single Q in 2010 waiting for sony's oct-dec, the ball was in MS court to really make up ground on Sony and so far it looks like they dropped it to me, WW gap is about the same it was pre Move/Reach/Kinect launches even if you use this sites sold to consumers data

thats right i dont but im not going around saying that theres now way they wont drop to 199 this year, by looking at that chart one would assume that in 09 they wouldnt drop much from $400 most on here were only saying the drop wil be down only to $349 that chart means nothing to me in terms of foreseeing things

hitting the NOS early in the FF movie resulted in walker loosing diesel won cause he waited

same can apply to sales you want the wow factor of a price cut or remodel around the holidays not during the summer when every ones tanning at the beach



                                                             

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snakenobi said:
Gojimaster said:

Snakenobi, there is no way that Kinect will have a $50 price-cut this soon.  Not going to happen.

M$ is going to have a very easy time keeping above last years numbers until the 1-year mark of when they released the Slim.  360 sales were in the toilet last year until the Slim was released.  After that, 360 dominated.  With a price-cut, 360 may be able to stay even or slightly above last years numbers. 

PS3 desperately needs a price-cut in NA.  Hopefully all these exclusives spike PS3 sales, but it appears that America is pretty decided that they prefer 360 at this point. 

Fudge-Pacter still seems to think the Wii is going to release an HD console within a year so which is why he can't predict whether there will be a Wii price-cut this year.  That is sad.  If the Wii was down 25% and still beating the 360 when it was up 40% there is no need to release a Wii 2 yet.  I don't know why Pacter doesn't get this... years sales and stocks might go up, but it would be a huge risk for Nintendo and could spell disaster if they release too early. 

MS is going to have an easy time until June but will Kinect be the same new cool device,no it won't as its been on the market for one year by that times so they will need a booster and that they can easily provide.

Pachter doesn't think that a Wii HD will come now,he has said that Ninty will try to do something else and compete directly with PS4 and 720


1) Kinect came out in November 2010.  It will be out a year in November 2011, not June 2011.

2) Kinect not being the new cool device anymore?  Is that like the Wii not being the new cool device after it's first holiday in 2006? Where sales dropped off significantly in 2007?  That's what happened, right???



Seriously dude you're a bit too into the 'console war' idea.

Anyhow had they cut the price they would have sold marginally more consoles in Q3/Q4 2010 and Q1 2011 than they did. How is that a big win exactly? Less profits and running out of consoles so they can't take advantage of any price advantage sounds intelligent. We also don't have up to date Sony shipments so you can shelve the idea of Sony outshipping them until we have them.

You also assume that they wait to cut the price in Q4 because of a wow factor. The reality is of course it is margin preservation because they don't tend to cut the price until the last minute. It makes the financial year look a lot better if you cut the price halfway into it. That way your profits don't completely dive away in the year that you do something silly like cut the price.

If Greenburg really wanted to cut the price he wouldn't cut the price in Q1 with poor supply, the end of Q2 he might have supply depending on how much he wanted to sell in Q4 so at minimum the price cuts would wait until June, July, August or September or from the end of Q2 to the start of Q4. This would be a good year for aggressive price cuts if he was an ass and actually cared beyond posting a good bottom line and actually cared about hurting his competion. With the PSP2 effectively finished Sony would be ramping up R and D on the PS4 and keeping Sony in the red would be most beneficial from here on out if he expected Sony to match a large price cut with a similar cut of their own. Nintendo similarly would be looking to increase their profit margins given their precipitous drop YOY of over 75%.



Tease.

I think we're looking at 50$ price cuts, nothing more...

Sales aren't so low that they need a huge cut to relaunch them..



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !