By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Gaming Discussion - Is the era of Console Price Cuts Over?

Prices are down from the first launch, just not as dramatically as in the past... The way that hardware is manufactured these days is different. Chips are outsourced to massive third-party fabs who will charge a fixed price per chip. These fabs won't be sitting doing nothing if your console is selling less, they have other customers they can service instead...

The cost savings would come if you want a faster, better CPU.... or merge multiple chips into one. If you want five chips that basically do the same thing as last year, you'll pay the same amount as last year.



Around the Network
FarleyMcFirefly said:
SanAndreasX said:

The $99 Gamecube happened because stores were carrying so much unsold inventory of Gamecube consoles that Nintendo actually suspended manufacturing of new consoles for a couple of quarters. Don't expect that with the Switch, which is flying off store shelves at $300 almost as fast as Nintendo can ship them.

It's weird though that Nintendo never dropped the Wii U price... Is it because they would have lost much more per console than gamecube?

They weren't desperate enough to unload their inventory to drop the price. But another issue is that manufacturing is much more expensive these days. Components are likely expensive as well. At some point, you're going to be hard pressed to find $200 consoles.



The only way to see the kind of price cuts we became accustomed to in the "old days" is to wait for the new generation of consoles to come out and buy the previous ones used.

I lost a PS4 in the divorce and have been happily seeing the PS4 prices start to dip in the last month.



Retro Tech Select - My Youtube channel. Covers throwback consumer electronics with a focus on "vid'ya games."

Latest Video: Top 12: Best Games on the N64 - Special Features, Episode 7

I remember in the 360 gen it was cause for celebration when 360 or PS3 got a price cut. New battle in console wars, new sales projections. Narratives changed on a dime lol. This gen I didn’t get that feeling. It was all “oh, neat”.



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

Darwinianevolution said:
I miss 99€ consoles.



Around the Network
couchmonkey said:

I don’t follow gaming news like I used to, and CAN exchange rate might be blinding me too...but does it seem like console price cuts have come to an end?  3DS had one early on because it was flopping, but I don’t think it’s gone down $1 since then; did PS4 and XBox One get cuts when the “pro” versions came out? And, even if so, remember the days of nearly-annual price chops, or the $99 GameCube?

SanAndreasX said:
couchmonkey said:

I don’t follow gaming news like I used to, and CAN exchange rate might be blinding me too...but does it seem like console price cuts have come to an end?  3DS had one early on because it was flopping, but I don’t think it’s gone down $1 since then; did PS4 and XBox One get cuts when the “pro” versions came out? And, even if so, remember the days of nearly-annual price chops, or the $99 GameCube?

The $99 Gamecube happened because stores were carrying so much unsold inventory of Gamecube consoles that Nintendo actually suspended manufacturing of new consoles for a couple of quarters. Don't expect that with the Switch, which is flying off store shelves at $300 almost as fast as Nintendo can ship them.

Also, the Gamecube's launch price was $199.  So it's important to note that was the result of only 2 price cuts ($199 to $149, and then $149 to $99).  The PS4 has had the same number of $50 incremental price cuts over its lifetime ($399 to $349, and $349 to $299).  



There seems to be several factors involved in the lack of price cuts.  The PS2 started at $300 and got down to $99 eventually.  The PS3 started at $500/$600 and eventually got down to $270/$300.  So the PS2 ended up at 1/3 of its launch price, but the PS3 was closer to 1/2.  And now the PS4 is only 3/4 of its launch price.  Who knows if it will get another price cut?  It seems like the big 3 don't want to drop the price like they used to.

But adding to this, I don't think PS4 had much competition during Generation 8.  The Wii U and XB1 basically failed on their own, so Sony didn't have much incentive to drop the PS4 price.  It kept selling well at $300 and what else are you going to buy?  PS4 was clearly the best option.  In Generation 7, the systems were a lot more compeitive with each other.

And now there is the Switch.  They can't keep enough stock on the shelves right now, so there is no way that Nintendo is going to drop the price.  So, at the moment there doesn't seem to be a lot of incentive for companies to drop the price.  The best people can get is some sort of holiday deal.



3DS dropped in price, generally as new models were introduced. The price dropped models then tended to fade out of the market.



Too much money printing all over world, devalued currencies. Inflated product prices and assets. Up they go.



Basically PS3 and 360 was competing for the same customers, hard. So there was a bunch of price cuts. Sony probably researched and realized customers were going to buiy a PS4 anyway regardless of a price cut, that's why there hasn't been any. Microsoft is not going to steal any market share with price cut. 

Nintendo always had its league of supporters and young children as base.