Re: Price cuts - I think there are some excellent points here already, but I also have to wonder if MS isn't afraid of selling the 360 Pro at or below Wii's price point and then still being outsold by a 'last-gen/inferior' system.

Bundles - Not bundling GTA doesn't surprise me, it was not bundling Halo 3 that shocked me. Not even with the Halo 360 (or whatever they called the ugly beast). I mean WTF was with that?

European prices - Didn't they just cut the price in Europe? Not that it helped much...

Actually, it helped a bunch. The 360 was ~50k a week in Others and has since done 61k, 94k, 91k, and 75k since the price drop.

some companies in the USA bring their products to europe and when you would calculate the price to US $ you will clearly see the europeans get to pay more, sometimes even double (or more) the money. This is because there is not anything to forbid such a thing. there is no trade agreement between the EU and USA to coordinate these things. (simply because USA fills its pockets with these things, which is my opinion) Microsoft is one of those companies (even though their 'windows xp and vista' show it somewhat more clearly. Profit is all that matters to most comapnies and when there is such a possibility, you simply take it (when it wouldn't affect your company badly)

Don't we have to thank the E.U's wonderful VAT for increase in prices, rather than Capitalism?

One of the thing that is hurting Microsoft in my view too is they are starting to lack hype for future titles.

They still have a very good list of games coming this year but there isn't much visibility for the years after.(or if there are big titles announced for 2009 I haven't heard of them..)

On the PS3 side the fact that major titles haven't come out yet did hurt the PS3 at the beginning but now that the console is starting to sell people can look forward to the future and know that some of the biggest titles are yet to come ( FF, GT5, GoW, and a slouch of others Sony owned IP which while not being so big should still satisfy their fans ( Getaway, Shadow of the Colossus,...)

So what PS3 buyers see is that they will be supported well in the next years, Microsoft has however failed in my view to deliver such a message ( and the occasional rumors about an Xbox720 in 2010 or so don't help their case at all).

I consider that as part of the cost of the unit.

So for example, if the cost of shipping, labor, and replacement parts is $100 for each and 30% of them fail, you have to add $30 to every unit sold.

1- Maybe there will still be one.

2- Same here.

3- You didn't think this one through. After the price cuts, the European prices are around the same as USA's prices. To make it clear:

360 Arcade - 200 € vs $280. Take out typical 20% tax from the European price, and you have the European price being $20 less.

360 Premium - 270 € vs $350, or basically equal price after tax is removed.

360 Elite - 365 € vs $450, the Elite is $30 more in Europe after tax is removed.

This is another reason why I think Microsoft will do a price cut in USA before GTA4 - it seems very strange to me that their consoles are around the same prices in Europe, which is a kind of a first. If they don't cut their prices, it really means that they're focusing on not losing any more money.

1) I'm sure they want to hold off on a price-cut in their strongest region for as long as possible.

2) I doubt they even considered Sony would do this.

3) Conversion rates don't translate that way.

maybe that is why microsoft are really pushing the dlc for gta. they are probably trying to soften the blow of the ps3 bundle.

those are three extremely valid points.

1. I agree fully WTF is with the price cuts, or lack thereof? should be at least $300 now, not $350

2. Once again I agree. You buy the extra content which was smart, but with the PS3 bundling GTA4 sales of the game could be extrememly close!

3. I'm not sure about prices in EU so i'll leave this one to you.

great post.

9.5/10