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Forums - Microsoft - IS the Europe price cut bigger than first thought? Starts today?

I think that MS can take a loss on consoles, since they're doing so well in software



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They have been strongly defending their decision to sell an HD-less SKU...this will be the real test of that strategy.



DMeisterJ said:
Jeez. 122 US dollars? That's crazy.

Going by the three companies' strategy, a 80 € price drop in Europe would most likely equal a $80 drop in USA.

 



My Mario Kart Wii friend code: 2707-1866-0957

I think it's obvious that MS have made much better cost-cuts then they are given credit for, but we KNOW that Sony have made great ones too. So now the question is, will they just let MS lead (or at the very least equal Sony's marketshare) while they try to make some money, or will they use some of the premium they get on EU consoles to make another cut?



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

NJ5 said:
DMeisterJ said:
Jeez. 122 US dollars? That's crazy.

Going by the three companies' strategy, a 80 € price drop in Europe would most likely equal a $80 drop in USA.

 


Even that would be very large, and would significantly undercut the Wii's price.  But I agree that $80 is looking like the more likely upper limit to the impending NA price cut.



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

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starcraft said:
ferret1603 said:
 

 

The cost of living is shooting up in the UK. In real terms our earnings are going backwards. There was an item on the radio this morning saying we're all £1700 worse off that this time last year. Petrol prices are through the roof and fuel prices have just had massive increases. My parents have stopped heating most of the house and rely on a wood fire in the sitting room as electricity and gas prices are huge. Where I live we've also had massive water rate increases. We were already the highest in the country because of all the beaches. House prices have more than quadrupled in the last 10 years but wages haven't gone up much at all.

The average wage is about £25,000 but most people earn less than that, it's boosted by a few hundred thousand very high earners. Here (Cornwall) the average wage is about £17,000 will half of people earning £12,000 or less. So no, we don't earn more "on the island", the UK is a very very expensive place to live.

On your specific prices, the Wii is £179.99, a 40gb PS3 is £299, you can look at some food prices at tesco.com and rent widely ranges depending on where you are in the country. Take a look at rightmove.co.uk if you're really interested. For buying the average house price is about £200,000. Alcohol and cigarettes are very heavily taxed in the UK. Booze runs across to France to stock up are common because even with petrol and ferry costs you save money.

Outward migration is sky rocketing largely because of the cost of living and social changes. (Which is interesting as so is inward migration from Eastern Europe, the Asian sub-continent and Africa.) The people leaving are mainly native Britons going to the US, Canada, Australia and Spain. I'm seriously thinking of joining them, the wages just don't match the cost of living if you want to enjoy any sort of non-essentials like gaming. The UK isn't in a great state at the moment to be honest.


Come to Australia:)

 Your gaming prices seem to be even more insane! Is other stuff cheaper? What's the average house price? 

 



stranne said:
They have been strongly defending their decision to sell an HD-less SKU...this will be the real test of that strategy.

Since the HD-less SKU has existed from the beginning, it makes no sense to cut if off now... It's not like it would give them any sort of advantage, since games would still have to work in the existing Arcade/Core units which were sold before.

 



My Mario Kart Wii friend code: 2707-1866-0957

I think that sony may just go back to taking a loss on PS3s again. They've won the format war, now they need people to upgrade, also, if they want good sales for MGS4, they need to get more consoles out there. Sony will have to be aggressive and at least do 350/450, but 300/400 would be more likely, and have a bigger effect, not unless they WANT to lose this generation.



ferret1603 said:
starcraft said:
 

Come to Australia:)

Your gaming prices seem to be even more insane! Is other stuff cheaper? What's the average house price?

 


Housing prices and petrol are high like the rest of the world.  Unlike the rest of the world, our wages are keeping up with costs due to our proximity to the booming Asian giants China and India.



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

take the premium now 269 euro's new price which is 400 dollar....
In europe we always pay too much...this is a nice correction.
I didn't expect such a huge drop though!!!