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Forums - Gaming Discussion - Why are so many people requesting console price cuts?

Pristine20 on 11 June 2008

I see all these posts requesting price drops. Do people realize that the US $ has fallen greatly. Thus consoles are actually a lot cheaper than they seem (at least in the US). This has cost international companies like the ones in gaming even more money. So they have actually gotten cheaper in the US while the EU foots the same bill.

A price cut right now to sell more hardware may not provide enough software boost to offset the monumental losses.

If you want a cheaper console, buy a wii or the 360 arcade and stop complaining! Any more price cuts and nintendo would be the only one left in the industry and that'll be the day I finally stop gaming. Discuss...



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler

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Words Of Wisdom on 11 June 2008
Pristine20 said:

I see all these posts requesting price drops. Do people realize that the US $ has fallen greatly. Thus consoles are actually a lot cheaper than they seem (at least in the US). This has cost international companies like the ones in gaming even more money. So they have actually gotten cheaper in the US while the EU foots the same bill.

A price cut right now to sell more hardware may not provide enough software boost to offset the monumental losses.

If you want a cheaper console, buy a wii or the 360 arcade and stop complaining! Any more price cuts and nintendo would be the only one left in the industry and that'll be the day I finally stop gaming. Discuss...


When the US dollar falls, it does not make the cost of PS3s in the country go down nor do wages suddenly go up. A PS3 is still the same price within the economic system of the US. That price in relation to the outside world (I hear there is one!) is irrelevant to the people asking for price cuts.

 



Munkeh111 on 11 June 2008

People still want an expensive PS3, and it is better when cheaper. It clearly helps console sales, which is why the PS fanboys want a PS3 one



Pristine20 on 11 June 2008
Words Of Wisdom said:
Pristine20 said:

I see all these posts requesting price drops. Do people realize that the US $ has fallen greatly. Thus consoles are actually a lot cheaper than they seem (at least in the US). This has cost international companies like the ones in gaming even more money. So they have actually gotten cheaper in the US while the EU foots the same bill.

A price cut right now to sell more hardware may not provide enough software boost to offset the monumental losses.

If you want a cheaper console, buy a wii or the 360 arcade and stop complaining! Any more price cuts and nintendo would be the only one left in the industry and that'll be the day I finally stop gaming. Discuss...


When the US dollar falls, it does not make the cost of PS3s in the country go down nor do wages suddenly go up. A PS3 is still the same price within the economic system of the US. That price in relation to the outside world (I hear there is one!) is irrelevant to the people asking for price cuts.

 


But you do realize that the falling dollar makes it illogical, for companies outside the US like Sony, to cut prices because prices have already been cut by the US economy just that Americans don't realize this. The EU prices have to stay up as well to offset these costs.



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler

Bodhesatva on 11 June 2008
Words Of Wisdom said:
Pristine20 said:

I see all these posts requesting price drops. Do people realize that the US $ has fallen greatly. Thus consoles are actually a lot cheaper than they seem (at least in the US). This has cost international companies like the ones in gaming even more money. So they have actually gotten cheaper in the US while the EU foots the same bill.

A price cut right now to sell more hardware may not provide enough software boost to offset the monumental losses.

If you want a cheaper console, buy a wii or the 360 arcade and stop complaining! Any more price cuts and nintendo would be the only one left in the industry and that'll be the day I finally stop gaming. Discuss...


When the US dollar falls, it does not make the cost of PS3s in the country go down nor do wages suddenly go up. A PS3 is still the same price within the economic system of the US. That price in relation to the outside world (I hear there is one!) is irrelevant to the people asking for price cuts.

 


Correct. The Dollar is going down relative to other currencies, it is not decreasing in price for the American consumer. That process is called inflation.



http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">

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Pristine20 on 11 June 2008
Munkeh111 said:
People still want an expensive PS3, and it is better when cheaper. It clearly helps console sales, which is why the PS fanboys want a PS3 one

 

True, but remember that the business is about making profit. Thats why nintendo is still around this gen after a dismal performance last gen from a small company. If you sell more consoles software doesn't exactly correlate. For example, compare MGS2 sales with 10 mil PS2s sold and MGS3 sales with 80 mil PS2s sold.



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler

Millennium on 11 June 2008
Words Of Wisdom said:
Pristine20 said:

I see all these posts requesting price drops. Do people realize that the US $ has fallen greatly. Thus consoles are actually a lot cheaper than they seem (at least in the US). This has cost international companies like the ones in gaming even more money. So they have actually gotten cheaper in the US while the EU foots the same bill.

A price cut right now to sell more hardware may not provide enough software boost to offset the monumental losses.

If you want a cheaper console, buy a wii or the 360 arcade and stop complaining! Any more price cuts and nintendo would be the only one left in the industry and that'll be the day I finally stop gaming. Discuss...


When the US dollar falls, it does not make the cost of PS3s in the country go down nor do wages suddenly go up. A PS3 is still the same price within the economic system of the US. That price in relation to the outside world (I hear there is one!) is irrelevant to the people asking for price cuts.

 


It's irrelevant to the people asking for price cuts, but it is VERY relevant to the game companies that they are asking to cut prices: companies who manufacture consoles under different economic systems. It is, in fact, the entire reason they will say no. 



Complexity is not depth. Machismo is not maturity. Obsession is not dedication. Tedium is not challenge. Support gaming: support the Wii.

Be the ultimate ninja! Play Billy Vs. SNAKEMAN today! Poisson Village welcomes new players.

What do I hate about modern gaming? I hate tedium replacing challenge, complexity replacing depth, and domination replacing entertainment. I hate the outsourcing of mechanics to physics textbooks, art direction to photocopiers, and story to cheap Hollywood screenwriters. I hate the confusion of obsession with dedication, style with substance, new with gimmicky, old with obsolete, new with evolutionary, and old with time-tested.
There is much to hate about modern gaming. That is why I support the Wii.

Pristine20 on 11 June 2008
Millennium said:
Words Of Wisdom said:
Pristine20 said:

I see all these posts requesting price drops. Do people realize that the US $ has fallen greatly. Thus consoles are actually a lot cheaper than they seem (at least in the US). This has cost international companies like the ones in gaming even more money. So they have actually gotten cheaper in the US while the EU foots the same bill.

A price cut right now to sell more hardware may not provide enough software boost to offset the monumental losses.

If you want a cheaper console, buy a wii or the 360 arcade and stop complaining! Any more price cuts and nintendo would be the only one left in the industry and that'll be the day I finally stop gaming. Discuss...


When the US dollar falls, it does not make the cost of PS3s in the country go down nor do wages suddenly go up. A PS3 is still the same price within the economic system of the US. That price in relation to the outside world (I hear there is one!) is irrelevant to the people asking for price cuts.

 


It's irrelevant to the people asking for price cuts, but it is VERY relevant to the game companies that they are asking to cut prices: companies who manufacture consoles under different economic systems. It is, in fact, the entire reason they will say no. 


This is why I can't understand why people make such requests Even Activision's CEO was aking for a $200 PS3/360. Do these people wan't Sony and M$ to close their gaming divisions?



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler

Bodhesatva on 11 June 2008
Millennium said:
Words Of Wisdom said:
Pristine20 said:

I see all these posts requesting price drops. Do people realize that the US $ has fallen greatly. Thus consoles are actually a lot cheaper than they seem (at least in the US). This has cost international companies like the ones in gaming even more money. So they have actually gotten cheaper in the US while the EU foots the same bill.

A price cut right now to sell more hardware may not provide enough software boost to offset the monumental losses.

If you want a cheaper console, buy a wii or the 360 arcade and stop complaining! Any more price cuts and nintendo would be the only one left in the industry and that'll be the day I finally stop gaming. Discuss...


When the US dollar falls, it does not make the cost of PS3s in the country go down nor do wages suddenly go up. A PS3 is still the same price within the economic system of the US. That price in relation to the outside world (I hear there is one!) is irrelevant to the people asking for price cuts.

 


It's irrelevant to the people asking for price cuts, but it is VERY relevant to the game companies that they are asking to cut prices: companies who manufacture consoles under different economic systems. It is, in fact, the entire reason they will say no. 


Right, that's what needs to be made clear. Since the recession in the US started, the 500$ PS3 has:

1) Not become cheaper for US Citizens.
2) Become less profitable for foreign manufacturers to sell.

So there's two halves of the equation, and only the latter half has been affected. And I agree, profitability > install base.



http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">

Pristine20 on 11 June 2008
Bodhesatva said:
Millennium said:
Words Of Wisdom said:
Pristine20 said:

I see all these posts requesting price drops. Do people realize that the US $ has fallen greatly. Thus consoles are actually a lot cheaper than they seem (at least in the US). This has cost international companies like the ones in gaming even more money. So they have actually gotten cheaper in the US while the EU foots the same bill.

A price cut right now to sell more hardware may not provide enough software boost to offset the monumental losses.

If you want a cheaper console, buy a wii or the 360 arcade and stop complaining! Any more price cuts and nintendo would be the only one left in the industry and that'll be the day I finally stop gaming. Discuss...


When the US dollar falls, it does not make the cost of PS3s in the country go down nor do wages suddenly go up. A PS3 is still the same price within the economic system of the US. That price in relation to the outside world (I hear there is one!) is irrelevant to the people asking for price cuts.

 


It's irrelevant to the people asking for price cuts, but it is VERY relevant to the game companies that they are asking to cut prices: companies who manufacture consoles under different economic systems. It is, in fact, the entire reason they will say no. 


Right, that's what needs to be made clear. Since the recession in the US started, the 500$ PS3 has:

1) Not become cheaper for US Citizens.
2) Become less profitable for foreign manufacturers to sell.

So there's two halves of the equation, and only the latter half has been affected. And I agree, profitability > install base.


You hit the nail on the head



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler