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Forums - Sales - Analyst - PS3 Has Been 'Struggling' Against Xbox 360, Microsoft Not Likely to React to Price Drop

Currently the 360 has around a 3 million sales lead over the PS3. Assuming the PS3 outsells the 360 on average by 100k to 150k units per week. It will take 20 to 30 weeks to close the gap down on the 360. PS3 can equal or overtake the 360 in total console sales during December 2011. Both PS3 and 360 should break through the 60 million consoles sales number during December 2011.

Sony with the PS3 is focusing on increasing its market share. More market share increases game sales and accessory sales that both make huge return/profits. The PS3 has been on the world market one year less than the 360 and it has taken around 5 years to draw level with the 360 life time sales.

Microsoft with the XBox 360 is focusing on profitability and may not react to the PS3s latest price cuts. A big price cut once every 2 years has been the pattern of 360 and PS3 both taking turns in alternating years. Microsoft will have over 60 million console install base and it continues to grow. The software sales numbers with Modern Warfare 3, Gears of War 3, Kinect games, XBox live games, DLC content and other 360/multi-platform games will continue to sell decent software numbers well into the future.



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CGI-Quality said:
Well I can't see the 360 getting a price cut until at least after the Stars Wars console bundle launches. Therefore, they may head into this holiday with the current price point, giving the PS3 an easy advantage in EMEAA and a fighting chance in NA.

I can see a 360 price cut by early 2012, but not earlier. Could end up wrong though, but considering people already pre-ordered the Gears/Star Wars 360s with their current price points, I don't imagine that changing because of the PS3 cut.

the limit consoles didn't mean anything

like the TOX edition PS3,you can pre-order it before price cut=37900yen(thats official price),but it's 32900yen right now

http://translate.google.com/translate?js=n&prev=_t&hl=zh-TW&ie=UTF-8&layout=2&eotf=1&sl=auto&tl=en&u=http%3A%2F%2Fwww.famitsu.com%2Fnews%2F201108%2F17048581.html



There are some huge titles coming out leading up to the holidays and I believe that Microsoft has positioned itself perfectly, with the Kinect and it's kid/family orientated software, to keep a firm hold on second place behind the Wii. There's no doubt there will be an across the board price cut from Microsoft before December and when that happens, you can expect to see the 360 far outsell the PS3 in NA, more so than it's doing now.
WW, I don't know.... but then again, it doesn't really matter. None of this does. Both consoles are due to break 60 million very soon and the competition between them doesn't hold the same weight or importance it did just a few short years ago. At least not to those of us who consider ourselves Gamers and not silly, pom-pom waving fanboys.
Grab your panties boys and pick sides. sheesh.



CGI-Quality said:
D-Joe said:
CGI-Quality said:
Well I can't see the 360 getting a price cut until at least after the Stars Wars console bundle launches. Therefore, they may head into this holiday with the current price point, giving the PS3 an easy advantage in EMEAA and a fighting chance in NA.

I can see a 360 price cut by early 2012, but not earlier. Could end up wrong though, but considering people already pre-ordered the Gears/Star Wars 360s with their current price points, I don't imagine that changing because of the PS3 cut.

the limit consoles didn't mean anything

like the TOX edition PS3,you can pre-order it before price cut=37900yen(thats official price),but it's 32900yen right now

http://translate.google.com/translate?js=n&prev=_t&hl=zh-TW&ie=UTF-8&layout=2&eotf=1&sl=auto&tl=en&u=http%3A%2F%2Fwww.famitsu.com%2Fnews%2F201108%2F17048581.html

I think you misunderstood. I doubt they will have a WW, universal cut when they are charging a certain amount for a Limited Edition console. They will liklely wait until those have released. Either way, I didn't say that's "for sure", it's a hunch (but makes sense).

they can also cut the limited edition price,just like TOX edition PS3

and early 2012 is too late for being NO.1 ww(thats what MS want)in this year(they just leading 0.5m PS3 shipment numbers at first half of 2011)



Dark_Lord_2008 said:

Currently the 360 has around a 3 million sales lead over the PS3. Assuming the PS3 outsells the 360 on average by 100k to 150k units per week. It will take 20 to 30 weeks to close the gap down on the 360. PS3 can equal or overtake the 360 in total console sales during December 2011. Both PS3 and 360 should break through the 60 million consoles sales number during December 2011.

Sony with the PS3 is focusing on increasing its market share. More market share increases game sales and accessory sales that both make huge return/profits. The PS3 has been on the world market one year less than the 360 and it has taken around 5 years to draw level with the 360 life time sales.

Microsoft with the XBox 360 is focusing on profitability and may not react to the PS3s latest price cuts. A big price cut once every 2 years has been the pattern of 360 and PS3 both taking turns in alternating years. Microsoft will have over 60 million console install base and it continues to grow. The software sales numbers with Modern Warfare 3, Gears of War 3, Kinect games, XBox live games, DLC content and other 360/multi-platform games will continue to sell decent software numbers well into the future.

I agree with a lot of what you say, however before this PS3 price cut who was the last one to cut across the board their console prices? Wasn't it Sony in 2009 when they released their slim? The last time I remember MS giving across the board cuts to their consoles was 2008 with the 3 different sets:

$199.99 Arcade edition, $299.99 Pro, $399.99 Elite. Then they did away with Pro. Then later they did away with the Elite, and Arcade editions to introduce the X360 S which included the 4GB version for $199.99, and the 250GB version for $299.99. The last time MS made across the board cuts was 2008.

Therefore I really think MS is poised to make another cut this year across the board. If so it will increase their sales by huge numbers. I really believe they want to maintain as much market share as possible over profit margins. Thats my opinion based on what I have observed in the past.




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CGI-Quality said:
D-Joe said:
CGI-Quality said:
D-Joe said:
CGI-Quality said:
Well I can't see the 360 getting a price cut until at least after the Stars Wars console bundle launches. Therefore, they may head into this holiday with the current price point, giving the PS3 an easy advantage in EMEAA and a fighting chance in NA.

I can see a 360 price cut by early 2012, but not earlier. Could end up wrong though, but considering people already pre-ordered the Gears/Star Wars 360s with their current price points, I don't imagine that changing because of the PS3 cut.

the limit consoles didn't mean anything

like the TOX edition PS3,you can pre-order it before price cut=37900yen(thats official price),but it's 32900yen right now

http://translate.google.com/translate?js=n&prev=_t&hl=zh-TW&ie=UTF-8&layout=2&eotf=1&sl=auto&tl=en&u=http%3A%2F%2Fwww.famitsu.com%2Fnews%2F201108%2F17048581.html

I think you misunderstood. I doubt they will have a WW, universal cut when they are charging a certain amount for a Limited Edition console. They will liklely wait until those have released. Either way, I didn't say that's "for sure", it's a hunch (but makes sense).

they can also cut the limited edition price,just like TOX edition PS3

and early 2012 is too late for being NO.1 ww(thats what MS want)in this year(they just leading 0.5m PS3 shipment numbers at first half of 2011)

Well lets just say I doubt that cut will happen before those consoles are out. I just don't see them slashing the asking price of those consoles (although if they did, I'd hardly complain, but I don't see it), when they've had those solid prices for this long ($399/$449). I also don't know how anyone knows what Microsoft "wants", but I doubt an instant response to the PS3 cut is in the works. In fact, when has that ever happened?

Early-Spring 2012 at the earliest for a 360 cut is my assumption.

you didn't saw MS E3 Press Conference?or even majornelson's(or some MS guys) PR?

 

2007,2009

almost everytime



CGI-Quality said:
D-Joe said:

you didn't saw MS E3 Press Conference?or even majornelson's(or some MS guys) PR?

 

2007,2009

almost everytime

I'm not sure what you're referring to. I don't recall a global cut to the 360 (some deals, yes) when the PS3 got it's price cuts. Really, it makes no sense to keep debating the topic, it's a wait and see game. Either side may end up correct - I just don't see much reason for Microsoft to currently cut (especially in NA where they are ahead every week).

oh man,why can't you just google it

for about number one WW this year you can read this PR:

http://www.neogaf.com/forum/showthread.php?t=440545

i know we should wait and see,but you can't just keep"i don't remeber that i forget this"then make a predict



CGI-Quality said:
D-Joe said:
CGI-Quality said:
D-Joe said:

you didn't saw MS E3 Press Conference?or even majornelson's(or some MS guys) PR?

 

2007,2009

almost everytime

I'm not sure what you're referring to. I don't recall a global cut to the 360 (some deals, yes) when the PS3 got it's price cuts. Really, it makes no sense to keep debating the topic, it's a wait and see game. Either side may end up correct - I just don't see much reason for Microsoft to currently cut (especially in NA where they are ahead every week).

oh man,why can't you just google it

for about number one WW this year you can read this PR:

http://www.neogaf.com/forum/showthread.php?t=440545

i know it's wait and see,but you can't just keep"i don't remeber that i forget this"then make a predict

I looked through that and I don't see how that disproves any of what I said. The "prediction" is also simple; I don't see a cut happening before 2012. Not sure what's so hard to grip about that.

With “Gears of War 3” launching next month and more major launches to follow during the holiday, we expect Xbox 360 to maintain its lead throughout the year, ending 2011 as the number one console worldwide.

if you think even 360 without price cut,it still have chance to be number one console in this year,ok

btw we're not in the predict thread

come here if you wanna make some predict(and i will not disproves you in that thread i promise)

http://gamrconnect.vgchartz.com/thread.php?id=132889&page=1#



I agree with a lot of what you say, however before this PS3 price cut who was the last one to cut across the board their console prices? Wasn't it Sony in 2009 when they released their slim? The last time I remember MS giving across the board cuts to their consoles was 2008 with the 3 different sets:

$199.99 Arcade edition, $299.99 Pro, $399.99 Elite. Then they did away with Pro. Then later they did away with the Elite, and Arcade editions to introduce the X360 S which included the 4GB version for $199.99, and the 250GB version for $299.99. The last time MS made across the board cuts was 2008.

Therefore I really think MS is poised to make another cut this year across the board. If so it will increase their sales by huge numbers. I really believe they want to maintain as much market share as possible over profit margins. Thats my opinion based on what I have observed in the past.

Allfreedom99 said:
Dark_Lord_2008 said:

Currently the 360 has around a 3 million sales lead over the PS3. Assuming the PS3 outsells the 360 on average by 100k to 150k units per week. It will take 20 to 30 weeks to close the gap down on the 360. PS3 can equal or overtake the 360 in total console sales during December 2011. Both PS3 and 360 should break through the 60 million consoles sales number during December 2011.

Sony with the PS3 is focusing on increasing its market share. More market share increases game sales and accessory sales that both make huge return/profits. The PS3 has been on the world market one year less than the 360 and it has taken around 5 years to draw level with the 360 life time sales.

Microsoft with the XBox 360 is focusing on profitability and may not react to the PS3s latest price cuts. A big price cut once every 2 years has been the pattern of 360 and PS3 both taking turns in alternating years. Microsoft will have over 60 million console install base and it continues to grow. The software sales numbers with Modern Warfare 3, Gears of War 3, Kinect games, XBox live games, DLC content and other 360/multi-platform games will continue to sell decent software numbers well into the future.

I too think this is the case. X360 has been very successful in NA but it has been now out for few years. At what point does the "most people that want one already has one" effect kicks in or in a word, saturation - as an earlier poster mentioned.

I do think they would be a X360 price cut in reaction to Sony.

If memory serves me correctly (and it may not) big software titles didn't move that many x360s over the last year and a half or so, so why do people expect the upcoming releases to make a difference?

As for EMEAA PS3 sales common sense should dictate that Europe would be the biggest market based on economic buying power. With all due respect I don't see Africa being a big sales market, or the Middle East. In Asia (outside of Japan) I can only think of S.Korea that would have a booming gaming industry with countries like India and Thailand on the up but I don't think these figures would be no where near a "First World" market like Europe.

I could be wrong but I really don't see Sony (or maybe even Nintendo for that matter) dominating NA again regardless of price cuts. It seems NA will go the way of Japan and suport their own. It's the emerging markets that the future of gaming will be fought over and if EMEAA is anything to go a certain company is well positioned.



D-Joe said:
CGI-Quality said:
D-Joe said:

you didn't saw MS E3 Press Conference?or even majornelson's(or some MS guys) PR?

 

2007,2009

almost everytime

I'm not sure what you're referring to. I don't recall a global cut to the 360 (some deals, yes) when the PS3 got it's price cuts. Really, it makes no sense to keep debating the topic, it's a wait and see game. Either side may end up correct - I just don't see much reason for Microsoft to currently cut (especially in NA where they are ahead every week).

oh man,why can't you just google it

for about number one WW this year you can read this PR:

http://www.neogaf.com/forum/showthread.php?t=440545

i know we should wait and see,but you can't just keep"i don't remeber that i forget this"then make a predict

Interesting link pointed to in that thread's original post:

http://venturebeat.com/2011/08/11/july-retail-video-game-sales-drop-26-percent-worst-since-2006/#.TkRYkZkLVxM.twitter

WORST SINCE 2006!  People who are console partisans have a tendency to think of everything in terms of rival consoles.  One has to think that Sony has more on their mind than just "taking marketshare from Microsoft to beat them" so there would be some mythical party they can throw.   As it is now, sales declining mean something has to be done, and companies have more on their mind.  Even if there were no competitors, Sony would still look at a price drop to bolster sales.

Have no idea what Microsoft will be doing either, but it is presumed that they will do something, more likely bundle Kinect with everything, than anything else.  I am sure profitability is on their mind, but with Microsoft, if the rumored launch of another console is set over the next two years (announcement next year), then they are gearing up for that, and markeshare doesn't mean as much.  What matters is having MINDSHARE though.   But the thing now is remaining profitable in the market.  Microsoft will likely look to end up trying to grab marketshare with their new console a few years down the road, and look to hold serve.  As of now, PLACE coming it doesn't matter as much for this generation.