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Forums - Microsoft - How much/when will Microsoft drop the price of the 360?

madskillz said:
@ MrMafoo

I just have one question - if Sony is in such good financial shape, then why did they sell its chip making division off? The PS3 brand has drained the PS1 and PS2's profit in little more than a year. While Sony may be thriving, their gaming division is hurting.

I never, ever said MS was flawless - but their mistakes are minimal. And the 360 will die outside of the U.S.? When do you see this happening? The console was selling before the PS3 launch, it's still selling now, and will sell even more when MS cuts the price a bit. I see Sony losing more just from the standpoint of having to stop a lower-priced competitor. At this rate, the PS3 will take years to overcome the 360. And as I stated earlier, the 360 isn't the Xbox, and to think the 360 will fail like the Xbox is insane. Just look at the numbers - WW - and see one thing - if they figured out Japan, the 360 would be leading the PS3 totally.

All you have to do is keep watching the charts. The PS3 is really just running a wii bit ahead of the 360 WW ... domination is not on the horizon ...

 

You say all MS has to do is lower their prices. There is one flaw in that. Sony can easily lower there’s as well (or lower it first).

MS has one way to combat the PS3 for next year, and that’s price. Sony can take that away from MS by just lowering the cost of the PS3 as well.

They have a lot more incentive to do so. If they did, it would mean more BR players. Now the Format war is between DVD and BR. To sell more BR’s, they need more players.

Lowering the cost would be more than a Games Division win.

Another way to lower costs is to sell your chip manufacturing to someone who does it better and cheaper then you. That’s been done too (and should answer your question).

I see the PS3 killing the 360 sometime in late 2008, or early 2009.

MS has yet to show a profit. Yes, they play with numbers and say they had a profitable quarter. They do that by frontloading a billion in costs for RRoD's though warrantee extensions, and then can say the thousands they had to fix this quarter don't apply to current profits.

MS's game division is down billions of dollars if you add up all moneys spend and made from there gaming division. Sony on the other hand has been very profitable. I don’t know how dumping billions of dollars onto something that still cannot be determined as successful is a minimal mistake.

Same goes for Vista. That cost them 6 billion to make, and has done nothing but damage the company’s reputation even more. Yea, they have sold millions of copies with new systems. But if they had just improved XP, more system with Windows would have been sold in that timeframe. It’s a loss for MS, another one that can’t be considered minimal.

 



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madskillz said:
Legend11 said:
I guess we'll find out when they each release their quarterly report which one is in better shape for a $50 price drop.

You're correct, Legend. Aren't the reports just a week away? 


Microsoft: Jan 24th at 2:30PM PST. 

Sony: Jan 31st at 5:20PM JST.



Legend11 said:
madskillz said:
Legend11 said:
I guess we'll find out when they each release their quarterly report which one is in better shape for a $50 price drop.

You're correct, Legend. Aren't the reports just a week away?


Microsoft: Jan 24th at 2:30PM PST.

Sony: Jan 31st at 5:20PM JST.


Thanks a million, Legend! 



I think MS will wait 3-4 weeks after GTA comes out to make a price drop. Let's divide the GTA fans into 2 camps to make it simple:
1. People who love GTA and will buy a system for it at any price
2. People who love GTA and will buy it if there is a system within their price range

Group 1 is relatively limited and they will probably split between PS3 and Xbox360 WW (360 takes 60% of America say, PS3 takes 60% of EU).

The richer of Group 2 will probably go slightly to Xbox360 (because the 360 is within more people's price range). The people of Group 2 that just cannot afford a $279+ console will buy it on the first console to come down enough to their range. Unless PS3 starts massive drops, this console will most likely be the Xbox360.

In other words, I don't think they would want to pass up the extra money for the first few weeks of the GTA launch. After GTA and console sales slow down again, they'll drop the price to reinvigorate the market. That way, they can put out a press release that says (in a squeaky Bill Gates-esque voice) A) we outsold the PS3 in both hardware and GTA software and B) we continue to see even stronger sales as a result of our price drop last week. That's what I would do.



johntonsoup said:
I think MS will wait 3-4 weeks after GTA comes out to make a price drop. Let's divide the GTA fans into 2 camps to make it simple:
1. People who love GTA and will buy a system for it at any price
2. People who love GTA and will buy it if there is a system within their price range

Group 1 is relatively limited and they will probably split between PS3 and Xbox360 WW (360 takes 60% of America say, PS3 takes 60% of EU).

The richer of Group 2 will probably go slightly to Xbox360 (because the 360 is within more people's price range). The people of Group 2 that just cannot afford a $279+ console will buy it on the first console to come down enough to their range. Unless PS3 starts massive drops, this console will most likely be the Xbox360.

In other words, I don't think they would want to pass up the extra money for the first few weeks of the GTA launch. After GTA and console sales slow down again, they'll drop the price to reinvigorate the market. That way, they can put out a press release that says (in a squeaky Bill Gates-esque voice) A) we outsold the PS3 in both hardware and GTA software and B) we continue to see even stronger sales as a result of our price drop last week. That's what I would do.

That doesn't make any sense because GTA is a multi-platform launch. MS wants to take as many sales away from Sony as possible, meaning they will drop the price before GTA comes out, if they drop it at all.

They even dropped the price before Halo 3, the most anticipated game to be launched this entire generation.




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rocketpig said:
johntonsoup said:
I think MS will wait 3-4 weeks after GTA comes out to make a price drop. Let's divide the GTA fans into 2 camps to make it simple:
1. People who love GTA and will buy a system for it at any price
2. People who love GTA and will buy it if there is a system within their price range

Group 1 is relatively limited and they will probably split between PS3 and Xbox360 WW (360 takes 60% of America say, PS3 takes 60% of EU).

The richer of Group 2 will probably go slightly to Xbox360 (because the 360 is within more people's price range). The people of Group 2 that just cannot afford a $279+ console will buy it on the first console to come down enough to their range. Unless PS3 starts massive drops, this console will most likely be the Xbox360.

In other words, I don't think they would want to pass up the extra money for the first few weeks of the GTA launch. After GTA and console sales slow down again, they'll drop the price to reinvigorate the market. That way, they can put out a press release that says (in a squeaky Bill Gates-esque voice) A) we outsold the PS3 in both hardware and GTA software and B) we continue to see even stronger sales as a result of our price drop last week. That's what I would do.

That doesn't make any sense because GTA is a multi-platform launch. MS wants to take as many sales away from Sony as possible, meaning they will drop the price before GTA comes out, if they drop it at all.

They even dropped the price before Halo 3, the most anticipated game to be launched this entire generation.


My point is just that for people who care about prices of the console, I don't think MS needs to cut the prices because they are already well below PS3. Sorry if I muddled it with my lousy explanation.



I'll wait for the 360 arcade to hit $150 (used even) before I consider biting, myself. Now I just hope that there's a way to use a PS2 controller on the 360 (I HATE MS's controllers).



Nobody is crazy enough to accuse me of being sane.

All I know is MSFT wont go below $200 this year. The PS3 will be priced $299 by the end of the year. Im seeing $299 PS3 and $259 Xbox Premium. Core eliminated, and Elite priced at $359, 80gb eliminated or dropped to $450 with MGS4 bundled...or something like that.



I really can't see the PS3 having a $100 price drop this year.