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Forums - Microsoft - $400 X360+Halo bundle revealed. No X360 price cut despite PS3 Slim and WiiU launches?

D-Joe on 15 July 2012
withdreday said:
kain_kusanagi said:
withdreday said:
Rudisha said:
withdreday said:
crissindahouse said:

no clue but it really seems like they don't try a lot anymore to sell more 360s. just talking about this edition, it is for halo fans and not really for new console customers so they rather try to make a good profit with the halo 360s instead of selling more of them but without gaining a lot new customers because even if they would sell that edition for a lower price most who will buy it already own a 360. so they only profit they will make selling this edition is the profit of the console itself and not future game sales.

I think it's because they're still selling the 360s at a loss.


why do you believe this?

I just can't see any other reason they won't cut the price. They were are in position to put their foot on Sony's throat on several occasions with a price cut this gen, and they didn't, which leads me to believe they still want to turn a profit on the console.

The rule of business is to sell a product for the highest amount that the majority of customers are willing to pay. The Xbox 360 hasn't sold at a loss for years and may have never sold at a loss. Yes, MS could have undercut Sony many times, but they chose not to start a price war that would end up with both of them selling at a loss. MS must be happy with their sales projections right now. They can always price drop later. If Sony drops so will MS and things will be as they are now, just at a lower price.  MS knows that if they drop first Sony will drop too and they will be at the same price but make less money.

I wouldn't say never- http://www.joystiq.com/2005/12/28/xbox-360-costs-715-to-make/ 

That was 5 years ago. But I'm thinking the 3 or so years the 360's gone with out a price drop has something to do with the fact they lost so much at the start.

huh,360 cost already break even in 2007...

it's sell heathly profit now,they can even drop the price to $99(4GB ver) and still profit,remember 360S didn't price cut



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withdreday on 15 July 2012
D-Joe said:
withdreday said:
kain_kusanagi said:
withdreday said:
Rudisha said:
withdreday said:
crissindahouse said:

no clue but it really seems like they don't try a lot anymore to sell more 360s. just talking about this edition, it is for halo fans and not really for new console customers so they rather try to make a good profit with the halo 360s instead of selling more of them but without gaining a lot new customers because even if they would sell that edition for a lower price most who will buy it already own a 360. so they only profit they will make selling this edition is the profit of the console itself and not future game sales.

I think it's because they're still selling the 360s at a loss.


why do you believe this?

I just can't see any other reason they won't cut the price. They were are in position to put their foot on Sony's throat on several occasions with a price cut this gen, and they didn't, which leads me to believe they still want to turn a profit on the console.

The rule of business is to sell a product for the highest amount that the majority of customers are willing to pay. The Xbox 360 hasn't sold at a loss for years and may have never sold at a loss. Yes, MS could have undercut Sony many times, but they chose not to start a price war that would end up with both of them selling at a loss. MS must be happy with their sales projections right now. They can always price drop later. If Sony drops so will MS and things will be as they are now, just at a lower price.  MS knows that if they drop first Sony will drop too and they will be at the same price but make less money.

I wouldn't say never- http://www.joystiq.com/2005/12/28/xbox-360-costs-715-to-make/ 

That was 5 years ago. But I'm thinking the 3 or so years the 360's gone with out a price drop has something to do with the fact they lost so much at the start.

huh,360 cost already break even in 2007...

it's sell heathly profit now,they can even drop the price to $99(4GB ver) and still profit,remember 360S didn't price cut

Source? And if they can, they should do it. But I guess it's better for them to profit as much as possible before the start next gen. Console launch losses can get ugly in the beginning...



kain_kusanagi on 15 July 2012
withdreday said:
D-Joe said:
withdreday said:
kain_kusanagi said:
withdreday said:
Rudisha said:
withdreday said:
crissindahouse said:

no clue but it really seems like they don't try a lot anymore to sell more 360s. just talking about this edition, it is for halo fans and not really for new console customers so they rather try to make a good profit with the halo 360s instead of selling more of them but without gaining a lot new customers because even if they would sell that edition for a lower price most who will buy it already own a 360. so they only profit they will make selling this edition is the profit of the console itself and not future game sales.

I think it's because they're still selling the 360s at a loss.


why do you believe this?

I just can't see any other reason they won't cut the price. They were are in position to put their foot on Sony's throat on several occasions with a price cut this gen, and they didn't, which leads me to believe they still want to turn a profit on the console.

The rule of business is to sell a product for the highest amount that the majority of customers are willing to pay. The Xbox 360 hasn't sold at a loss for years and may have never sold at a loss. Yes, MS could have undercut Sony many times, but they chose not to start a price war that would end up with both of them selling at a loss. MS must be happy with their sales projections right now. They can always price drop later. If Sony drops so will MS and things will be as they are now, just at a lower price.  MS knows that if they drop first Sony will drop too and they will be at the same price but make less money.

I wouldn't say never- http://www.joystiq.com/2005/12/28/xbox-360-costs-715-to-make/ 

That was 5 years ago. But I'm thinking the 3 or so years the 360's gone with out a price drop has something to do with the fact they lost so much at the start.

huh,360 cost already break even in 2007...

it's sell heathly profit now,they can even drop the price to $99(4GB ver) and still profit,remember 360S didn't price cut

Source? And if they can, they should do it. But I guess it's better for them to profit as much as possible before the start next gen. Console launch losses can get ugly in the beginning...

Why should they drop just because they can? Sony didn't do their price drop to be nice, they did it because their price was turning people away. Now the price is right and people are buying. Like I said the rule of business is to sell at the highest price  the customer will pay. Unless something changes in the market MS isn't going to turn money away when people keep buying millions of Xbox 360s a year. It's not a charity, it's a business.



Mistershine on 15 July 2012

Why would they announce a November price 4.5 months in advance? That will pretty much kill current sales as people wait to save a few quid.



jamesmarkus87 on 15 July 2012

With Halo 4 being released in November, does 360 even need a price drop to compete with Wii U and PS3?



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Chark on 15 July 2012
kain_kusanagi said:

Are we sure there is going to be a 16GB model? Right now everything is a rumor and it could be a mistake. It could really be 160GB like there is now. If that's the case Sony could easily launch a new model with a pack in game at the same price levels. Unlike the Xbox 360 that can get by, just barely, without a decent harddrive, the PS3 has many games with manditory installs. 16GB just wouldn't cut it. Those of us with 60GB fats can tell you they fill up fast.


I'm considering that possibility as well, but even if it is a 160gb model written as 16 by mistake the price would still have to be $200, which is a price cut. The 250gb won't be at $300 because then it would be a samller hard drive than the 320gb model now. It's possible for a $150/$200/$250 pricing scheme, but $200/$250/$300 makes sense too.



Before the PS3 everyone was nice to me :(

withdreday on 15 July 2012
kain_kusanagi said:
withdreday said:
D-Joe said:
withdreday said:
kain_kusanagi said:
withdreday said:
Rudisha said:
withdreday said:
crissindahouse said:

no clue but it really seems like they don't try a lot anymore to sell more 360s. just talking about this edition, it is for halo fans and not really for new console customers so they rather try to make a good profit with the halo 360s instead of selling more of them but without gaining a lot new customers because even if they would sell that edition for a lower price most who will buy it already own a 360. so they only profit they will make selling this edition is the profit of the console itself and not future game sales.

I think it's because they're still selling the 360s at a loss.


why do you believe this?

I just can't see any other reason they won't cut the price. They were are in position to put their foot on Sony's throat on several occasions with a price cut this gen, and they didn't, which leads me to believe they still want to turn a profit on the console.

The rule of business is to sell a product for the highest amount that the majority of customers are willing to pay. The Xbox 360 hasn't sold at a loss for years and may have never sold at a loss. Yes, MS could have undercut Sony many times, but they chose not to start a price war that would end up with both of them selling at a loss. MS must be happy with their sales projections right now. They can always price drop later. If Sony drops so will MS and things will be as they are now, just at a lower price.  MS knows that if they drop first Sony will drop too and they will be at the same price but make less money.

I wouldn't say never- http://www.joystiq.com/2005/12/28/xbox-360-costs-715-to-make/ 

That was 5 years ago. But I'm thinking the 3 or so years the 360's gone with out a price drop has something to do with the fact they lost so much at the start.

huh,360 cost already break even in 2007...

it's sell heathly profit now,they can even drop the price to $99(4GB ver) and still profit,remember 360S didn't price cut

Source? And if they can, they should do it. But I guess it's better for them to profit as much as possible before the start next gen. Console launch losses can get ugly in the beginning...

Why should they drop just because they can? Sony didn't do their price drop to be nice, they did it because their price was turning people away. Now the price is right and people are buying. Like I said the rule of business is to sell at the highest price  the customer will pay. Unless something changes in the market MS isn't going to turn money away when people keep buying millions of Xbox 360s a year. It's not a charity, it's a business.

I don't wan't them to give the darned thing away. I just expected at least a price cut to $149 for the 4GB model by now. Who knows, they might be in the 70 millions + sold had they did it last holiday season.



NeoRatt on 15 July 2012
withdreday said:
Rudisha said:
withdreday said:
crissindahouse said:

no clue but it really seems like they don't try a lot anymore to sell more 360s. just talking about this edition, it is for halo fans and not really for new console customers so they rather try to make a good profit with the halo 360s instead of selling more of them but without gaining a lot new customers because even if they would sell that edition for a lower price most who will buy it already own a 360. so they only profit they will make selling this edition is the profit of the console itself and not future game sales.

I think it's because they're still selling the 360s at a loss.


why do you believe this?

I just can't see any other reason they won't cut the price. They were are in position to put their foot on Sony's throat on several occasions with a price cut this gen, and they didn't, which leads me to believe they still want to turn a profit on the console.

The issue is "what would a price cut do?"

They still have a big lead on ps3 in usa sales. They are equally behind in Europe, and Japan will not budge significantly towards 360.

So, if they cut price, they may have a minor gain in usa, their price cuts in europe haven't really changed results, and japan price cuts only last a few weeks (but in japan if they sell double nothing, they are still at nothing)...  Meanwhile they would tick off the people who are taking advantage of the $99 xbox deal.

I think MS is looking at the next generation. And don't really see much left to win this gen (sluggish economy and 7 years into the gen for them).  And MS has to be really happy with the results this gen... Assuming Sony releases a new console next year as well, MS will be able to brag that they have had the longest non-product replaced console in history, they can brag that sales will be in the 70 million range, and that up until the end of this year or early next they will have held 2nd place.

They are better off to stand where they are, and continue to ramp up for next year's next gen launch.  Innovation and big sales figures are done for this gen.  At E3 there was no one showing any amazing new technology.  There were new IPs but, I didn't see anything new in any of the announced games by any of the console vendors.  The only real tech at e3 was SmartGlass and the Wii U tablet.  Both have uses but were unimpressive.



withdreday on 15 July 2012
kowenicki said:
withdreday said:
CGI-Quality said:
withdreday said:

Jeez, what are they trying to do, give the console lead to Sony?

Even if the PS3 passes the 360, the "console lead" belongs to the Wii. Second, we don't know what Microsoft is planning (outside of this bundle). 

Regardless, I'm sure neither of them wants the legendary 3rd place.

1. Of course they can afford it and are making healthy profits on hardware

2." The legendary 3rd place"? do you just make that up?  I dont recall such a legend.

3. If Sony release their new slimmer slim at a much reduced price then they are dummer than even I thought they were.... Why bother with a new cheaper iteration if all you do is pass that on to the consumer?  In normal circumstance perhaps you can argue this is a good move but in Sony's current state thats idiotic.

1. I'm still looking for concrete numbers on that.

2. It was a bit of sacrasm, surely you aren't that dense.

3. Idiodic? Despite the fact that Sony has a half a billion to spend on GaiKai, and the 3 revised slims plan worked out well on the PS2 and a lower price point will lead to greater sales?

Yeah, I think most companies aim to be "idiodic" like that. 



thehusbo on 15 July 2012
kowenicki said:
withdreday said:
CGI-Quality said:
withdreday said:

Jeez, what are they trying to do, give the console lead to Sony?

Even if the PS3 passes the 360, the "console lead" belongs to the Wii. Second, we don't know what Microsoft is planning (outside of this bundle). 

Regardless, I'm sure neither of them wants the legendary 3rd place.

1. Of course they can afford it and are making healthy profits on hardware

2." The legendary 3rd place"? do you just make that up?  I dont recall such a legend.

3. If Sony release their new slimmer slim at a much reduced price then they are dummer than even I thought they were.... Why bother with a new cheaper iteration if all you do is pass that on to the consumer?  In normal circumstance perhaps you can argue this is a good move but in Sony's current state thats idiotic.


Why is Sony so idiotic releasing a cheaper console?