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Forums - Sales - M$ price drop in America will Sony have to respond?

Golvellius on 02 July 2008
Slimebeast said:

What people have to remember is that the PS3 initially cost $600 and the X360 only $400.

The PS3 has since dropped $200 and today costs $400.
The X360 only dropped $50 and costs $350.

The conclusion is that the X360 is lagging with price drops, and since the rumoured US price drop is again just $50, there is no way that PS3 will react to that.

So what we'll do is to look at the effect on sales numbers after this price drop on the X360:

The X360 officially dropped it's price in Europe in mid March this year by the equivalent to $50 which is 50 Euros. But in effect the price drop of X360 has been bigger due to the weakening Dollar during 2008, I'd say rufly 70 Euros (a X360 cost rufly 340 euros last fall/winter and today goes for rufly 270 euros, average prices in Western Europe).

The effect of this drop in price is that after 3 months the X360 still sells rufly 70,000 per week in EU/Others compared to 50,000 before the drop in March. That's a 40% sustained increase (the total increase during these 3 months is a lot bigger).

Sales today PS3:
Jap: ~12,000 (my estimation of stabilized sales after the initial MGS4-effect is gone)
NA: ~50,000
EU/O: ~90,000
--------------------
= 152,000 per week

Sales today X360:
Jap: ~2000
NA: ~57,000
EU/O: ~68,000
------------------------
= 127,000 per week

So the PS3 leads by 25,000 per week today.

But after the price drop in NA the X360 will get rufly 30-40% higher sustained sales than today: 1.35 x 57 --> ~77,000. That is 20,000 higher than the NA X360 sales today. ---> 147,000 X360's per week worldwide after NA price drop.

So the PS3 worldwide lead over X360 will shrink to only 5000 consoles per week this year (higher during holiday season).

As I said, this isn't so dramatic that Sony will want to respond, because they are doing just fine, but it is a nightmare for Sony fanboys because it will take eons to catch the 5.5 million install base lead of the X360 (please forget 2009 already!).

 

Very intelligent post and plausible reasoning.

I lol'ed at the bolded part.



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weaveworld on 02 July 2008
bumidan said:


I doubt that European PS3 selling price is that much higher than the US$ selling price of the PS3 to distributors and retailers.

Also, if PS3s are sold at US$350 to USA retailers/distributors - then I doubt European retailers and distributors would accept buying it for the equivalent of US$450, even though the Euro is currently a much stronger currency.

 

Alas, i know for a fact that our retailers do not make any money on selling a ps3 for 400 euro's

400 euro's equals 634 dollar.... DAMNED!! That is for the 40GB



kn on 02 July 2008

There will now be a PS3 price drop and it will be soon. How do I know this? Because I just bought a PS3 and my timing is like that. I buy a stock, it goes down. I sell the stock, it goes up. I buy something, the price drops. It's just like that. No thanks necessary to those waiting for a price drop, though... I'm selfless like that.



I hate trolls.

Systems I currently own:  360, PS3, Wii, DS Lite (2)
Systems I've owned: PS2, PS1, Dreamcast, Saturn, 3DO, Genesis, Gamecube, N64, SNES, NES, GBA, GB, C64, Amiga, Atari 2600 and 5200, Sega Game Gear, Vectrex, Intellivision, Pong.  Yes, Pong.

bumidan on 03 July 2008
weaveworld said:
bumidan said:


I doubt that European PS3 selling price is that much higher than the US$ selling price of the PS3 to distributors and retailers.

Also, if PS3s are sold at US$350 to USA retailers/distributors - then I doubt European retailers and distributors would accept buying it for the equivalent of US$450, even though the Euro is currently a much stronger currency.

 

Alas, i know for a fact that our retailers do not make any money on selling a ps3 for 400 euro's

400 euro's equals 634 dollar.... DAMNED!! That is for the 40GB

It may be due to all those factors I mentioned, and also possibly tariffs and import duties.  If the price that Sony sells to distributors are too different - then a black market will emerge - whereby North American importers will sell "cheaper" PS3s to European importers.

For big importers, it is a competitive market - and therefore having a $200 difference (equivalent currencies) for the SAME product DOES NOT MAKE SENSE.

 



bumidan on 03 July 2008

To further clarify my point, a 10% difference is likely, but not a 50% difference in WHOLESALE price as you are implying.



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makingmusic476 on 03 July 2008
SWA_JM_Obi-Wan said:
Do you 360 fans realize how foolish you are comeing off. Ober thecourse of 32 weeks on the Market, with your biggest franchises launched, the 360 is averageing 610k a month. In comparrison, Sony with 20 months (14 in Europe), With only small handfull of it's largest franchises, and a more expensive Price point, has averaged 692k a month. honestly there is no doubt which console is in higher demand. You guys would be so much better served to just keep silent on these issues and let the generation play out, because everytime you speak you just come off as looking like silly fanboys. As far as i can see this thread was just created to insire a Fanboy flame war. The answer is obvious. If Sony starts loosing sales they will drop too (reluctantly. If their sales hold (or improve as they did in Europe) Sony won't drop. Truth is a price drop has more potential to hurt MS than it does Sony.

 

I agree with this.

And let's not forget that the ps3 launched five months late in Europe, and it STILL has a higher monthly sales average than the 360.

 



weaveworld on 03 July 2008
bumidan said:
To further clarify my point, a 10% difference is likely, but not a 50% difference in WHOLESALE price as you are implying.

 

It was not implying, it is a fact that companies do not make money on the ps3, neither in America nor in Europe.

It just happens that someones precious dollar isn't worth anything anymore...

Oh yeah, and it is absolutely impossible for Sony to track what their American importers are actually doing with their consoles???? come on!!!



madskillz on 03 July 2008

@ Starcraft & Squilliam:

When dealing with the following, (Gazz, Crazz, Jazz) this graphic should help:



Diomedes1976 on 03 July 2008

I am pretty sure NPD data will show that the PS3 has smacked the 360 each and every week of June in North America.

And there goes your arguement.

As for Europe.....a big 360 120Euros(think about 180 dollars) price drop has increased a bit sales but not decreased the PS3 ones.Once the PS3 drops the price again MS will hit a wall at full speed.



starcraft on 03 July 2008
madskillz said:

@ Starcraft & Squilliam:

When dealing with the following, (Gazz, Crazz, Jazz) this graphic should help:

Skillz is full of WIN!

 



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