John_Doe said: MorgZ said: Remember that a "win" in business is defined as making profit, the more profit the better. I think the 360 sales are still doing great. - Sony predicted overtaking the 360 in Europe by ~ July earlier in the year and certainly wont achieve this.  http://vgchartz.com/hwcomps.php?cons1=PS3®1=Europe&cons2=PS3®2=Europe&cons3=X360®3=Europe&start=38921&end=39565&weekly=1

WHAT a knock-down lol

I wouldn't doubt an Xbox360 price cut this year either; if only because I believe MS will do everything it can to keep a sizable lead on the PS3 in the US.

too bad microsoft could go lower with a price cut because there system dosent cost as much to make as the ps3

Weird logic. Their system already costs much less than a PS3. If they make another considerable price-cut the main model will cost half as much as a PS3. I really really doubt that building a PS3 costs twice than a 360. I would rather expect Sony to drop the price. Their main model has dropped from 600 to 500$ in 18 months and lost hardware BC. Not exactly a price drop that makes them poor. They should have some room to drop the price if they need to.

Let's say the 360 is set to sell 5 million more consoles this year at current prices.  If they cut price $50, they might sell an extra million.  But it would cost them $250 million up front. (5 million x $50)  Are they going to MAKE $250 per console on the extra million sold?  Not a chance.  So why cut the price?  It'd be bad for business, even if it makes their sales look bigger.

 

The goal is to turn a profit, not to sell the most consoles.  If you can do both (Nintendo) then awesome.  But MS didn't get to be the size it is by being stupid economically.   

MS should of had its first price cut 12 months after launch... They didn't, they waited till after Sony had a price cut. Cause when your competitor has a crappy launch and no clear AAA games you have to give them breathing room to catch up... Sometimes i think MS is trying to lose this on purpose

So I'm sure as hell aint going to hold my breath to wait for the next one.. if anything they'll just wait till after the PS3 has another price cut...

I would really like to know what their average lifetime profit for a sold system is. How many games does a normal customer buy during the lifetime? I think for the PS2 it was ~10 games. I suppose Microsoft makes 10$ per sold game thats 100$. Then most gamers will pay for accessories (1 or two controllers, akku loader, Wifi, hard-disc, HD player, headset) I would think at least another 50-100$.
Add Xbox live with possibly 20-30$ profit per year and you come really close to 250$ per console. (All numbers pulled out of my behind).

Kyros said: Are they going to MAKE $250 per console on the extra million sold? I would really like to know what their average lifetime profit for a sold system is. How many games does a normal customer buy during the lifetime? I think for the PS2 it was ~10 games. I suppose Microsoft makes 10$ per sold game thats 100$. Then most gamers will pay for accessories (1 or two controllers, akku loader, Wifi, hard-disc, HD player, headset) I would think at least another 50-100$. Add Xbox live with possibly 20-30$ profit per year and you come really close to 250$ per console. (All numbers pulled out of my behind).

But giving up the $250 million at the time of the cut s not the same as making $250 million over the next three years as the people buy product, due to interest and the like.  $250 million over three years is more like $320 million or more in actual dollars, plus the hit against their quarterly statements.  

The point is that the average poster on this site throws out price cuts as if the only factor involved is that the company "wants to" so that they "win".  There's just so many more factors involved than that - the state of the dollar globally, production costs, the consumer economy in each market, supply, demand, etc etc.

 

 

True on the other hand the bigger the userbase in the beginning the more developers will make games for your console. Which means more people buying it, more games, more sales, more money.

It is true that in the end the console manufacturers want to make money. On the other hand "winning" the race is indeed lucrative.

I don't think they need to cut price but if they did they should do it with NG2 before MGS4 comes out.