postofficebuddy said:
Mr Puggsly said:
postofficebuddy said:
Depends on how big the price cuts to 360 and Kinect are this year. Anything more than $30 on both are going to cut pretty heavily into their margins. Although the losses are probably still going to be covered in a couple of years at the most still.
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Consoles get cheaper and cheaper to produce all the time. Also, price cuts should increase sales significantly so that would balance it out.
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After a certain point you start to reach diminishing returns. Old tech doesn't decrease in price as fast. That's probably part of the reason Nintendo has been so reluctant to cut the price of the Wii. I actually mentioned this a few times in the past but MS's price hike in the UK a couple years ago suggests that they don't have quite so much wiggle room with the arcade.
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Demand is pretty big in the UK it was an opportunity to make some extra profits. Also, that was years ago so obviously the hardware is cheaper to produce now.
Nintendo has been reluctant to drop the price because they haven't had too. Its not the Gamecube, its one of the best selling consoles ever.
Even if a price cut lowers profits per 360 console sold, surely the sales boost of hardware and accessories (Xbox Live, hard drives, Kinect, software, etc) will balance it out. Perhaps even boost profits.
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