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Forums - Sales Discussion - Pachter - PS3/X-box 360 Still Priced Too High For U.S. Saturation

Turkish said:
Kynes said:
Turkish said:
Kynes said:
Turkish said:
WIth the magical pricetag of 199euros finally in sight for the PS3, it will have another peak year this year.


And more in the red. Do you really think you can reduce the cost of a product a 33% in one year, and with the currency exchange the japanese companies have?


Slashing 50euros/dollaz from the price is 33%? A PS3 pricecut around september is plausible, they certainly won't wait another 2 full years for a pricecut, a full year when WiiU is on the market and probably PS4 release in Holiday 2013.

Last june it was 299$/€, if you sell this september at 199$/€ it's a 33% reduction from last june MRSP.


Well I was talking slashing 50euros/usd from the current price. It got a 50eur/usd pricecut around sept. (160gb version 249) right? I think this september it will get another 50eur/usd priecut. Seems possible.

You don't own a business, right?



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kowenicki said:
Turkish said:
kowenicki said:
Turkish said:
WIth the magical pricetag of 199euros finally in sight for the PS3, it will have another peak year this year.


so now its 199 euros thats the magical price point???

thought it was $199

so presumably you hold to the notion that more than half of console sales will come after a console hits the magical $199 (or in your case 199euros) mark?

In the US 199dollaz, in Europe 199euros. I think more then 1/3 of total PS3 sales will come after it hits 199 pricetag(further pricecuts long after PS4s release date included).


In which case you are contradicting yourself.  If only a 1/3rd of sales will come following the 199 euros price point and you expect it to last another 5 years (as sony do) then sales will decline.


Yeah, I think 2012 may be the last peak year for PS3. Supposedly they ship another 15 million for fiscal 2012

It will mean they will be at +-76 million. 1/3 of it is around 25 million, I expect another 25-30 million units shipped after fiscal 2012 spread around the years to come.



Kynes said:
Turkish said:
Kynes said:
Turkish said:
Kynes said:
Turkish said:
WIth the magical pricetag of 199euros finally in sight for the PS3, it will have another peak year this year.


And more in the red. Do you really think you can reduce the cost of a product a 33% in one year, and with the currency exchange the japanese companies have?


Slashing 50euros/dollaz from the price is 33%? A PS3 pricecut around september is plausible, they certainly won't wait another 2 full years for a pricecut, a full year when WiiU is on the market and probably PS4 release in Holiday 2013.

Last june it was 299$/€, if you sell this september at 199$/€ it's a 33% reduction from last june MRSP.


Well I was talking slashing 50euros/usd from the current price. It got a 50eur/usd pricecut around sept. (160gb version 249) right? I think this september it will get another 50eur/usd priecut. Seems possible.

You don't own a business, right?

Are you implying that Sony is making a loss on every PS3 sold? If so, how much do they lose?



Turkish said:
Kynes said:
Turkish said:
Kynes said:
Turkish said:
Kynes said:
Turkish said:
WIth the magical pricetag of 199euros finally in sight for the PS3, it will have another peak year this year.


And more in the red. Do you really think you can reduce the cost of a product a 33% in one year, and with the currency exchange the japanese companies have?


Slashing 50euros/dollaz from the price is 33%? A PS3 pricecut around september is plausible, they certainly won't wait another 2 full years for a pricecut, a full year when WiiU is on the market and probably PS4 release in Holiday 2013.

Last june it was 299$/€, if you sell this september at 199$/€ it's a 33% reduction from last june MRSP.


Well I was talking slashing 50euros/usd from the current price. It got a 50eur/usd pricecut around sept. (160gb version 249) right? I think this september it will get another 50eur/usd priecut. Seems possible.

You don't own a business, right?

Are you implying that Sony is making a loss on every PS3 sold? If so, how much do they lose?

I'm implying that reducing a 33% of the MRSP in one year is not an intelligent decision for a company that has had loses since FY2008. More so at the end of a generation, where most purchasers spend much less money in games than the early adopters, and use to buy second hand games, and with the huge losses that the strong yen provides.

I don't know how much Sony profits or losses on every unit sold, but I know something, and it's that Sony should concentrate on profits, not in marketshare, at the end of the generation and with the debt problems they have.

 

PS: Kowen has explained better than me. If I were a Sony head honcho, I probably would be pragmatic and being the PS3 the 1st or near 1st most purchased console of 2011, I wouldn't reduce it's MRSP in 2012 based on some fans wet dreams or some shill analyst comments.



I think that a price cut will help sales of both consoles, but at the same time i think it probably won`t be as effective as it could have been in the past.
6/7 years on the market, no matter the tag price, is still a lot of time. Who`s still waiting by now for a price cut to 199/149 or even 99? Some, yes, but how many? A lot of people probably got tired of waiting and just ended up paying a higher price today than they would have done last generation at the same period of time.
At this time, i`m not sure that price cuts will be as affective as they were in other years. Not to mention that if prices remain this high when Wii U arives, gamers might see an advantage in investing more now in a Wii U for just more 100/150 dollars/euros, than let`s say, if the consoles were already at 99/149, which would make the investment bigger and less affordable and something for future years.



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kowenicki said:
ethomaz said:

MS and Sony had their best holidays sales in US this year... so I agree... no saturation yet.


huh?

The PS3 was down 20% YOY for December wasnt it? and the 360 only slightly up.  So combined they were clearly down.

If I'm not wrong someone in MS said the consumers are buying early... the full holiday (Nov and Dec) have both UP yoy.

Edit - I see now... you already posted that.



This year is a bit confusing : record sales and market down at the same time ! What i understand is that jan to nov saw record sales for HDs in US but dec was weak in US... in US, WW ? only HDs ?, etc. that's a mess.



The question is : how much people own both 360 and PS3 ? If we don't know we can't tell if there is saturation ! I think HDs can sell at least 160m combined and they're only at circa 127m... there's still room !



Kai Master said:
This year is a bit confusing : record sales and market down at the same time ! What i understand is that jan to nov saw record sales for HDs in US but dec was weak in US... in US, WW ? only HDs ?, etc. that's a mess.

The HD consoles see a grow this year but the Wii drooped so much... so even with the grow of PS3 and 360 the market is down.



ethomaz said:
Kai Master said:
This year is a bit confusing : record sales and market down at the same time ! What i understand is that jan to nov saw record sales for HDs in US but dec was weak in US... in US, WW ? only HDs ?, etc. that's a mess.

The HD consoles see a grow this year but the Wii drooped so much... so even with the grow of PS3 and 360 the market is down.


Mostly this, but also reduced PS3 cost means lower revenue.