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Forums - Microsoft - Greenwald “very sceptical” of 360 E3 price adjustment

reask on 21 July 2008

Signal Hill’s Todd Greenwald has issued a damning statement on Microsoft’s E3 360 price adjustment today, saying that it’s not enough to differentiate the machine from PlayStation 3 in the US.

“We remain very sceptical of Microsoft’s pricing strategy and competitive positioning versus the PlayStation 3,” said the analyst in a research note.

“At $349, with a 60Gb hard drive, we just don’t think it is a compelling product compared with the PS3 at $399 with an 80Gb hard drive (along with more processing horsepower, Blu-ray, Wifi, HDMI, and going forward, more exclusive content),” he offered.

“We’d also note that the Xbox 360 has just been surpassed by the Wii in the US, despite Microsoft’s one year head start over Nintendo.

“We do think that the Netflix announcement is a significant addition for Xbox users, though its far more of a positive for Netflix than it is for Microsoft in our opinion.”

Microsoft dropped the price of the 20Gb US 360 SKU and announced a new, 60Gb machine just before E3 last week.

 

 

It,s A fair point when you look at both products.

Are ms taking the american market for granted?

http://www.videogaming247.com/2008/07/21/greenwald-very-sceptical-of-360-e3-price-adjustment/



 

 

 

 

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rocketpig on 21 July 2008
reask said:

Signal Hill’s Todd Greenwald has issued a damning statement on Microsoft’s E3 360 price adjustment today, saying that it’s not enough to differentiate the machine from PlayStation 3 in the US.

“We remain very sceptical of Microsoft’s pricing strategy and competitive positioning versus the PlayStation 3,” said the analyst in a research note.

“At $349, with a 60Gb hard drive, we just don’t think it is a compelling product compared with the PS3 at $399 with an 80Gb hard drive (along with more processing horsepower, Blu-ray, Wifi, HDMI, and going forward, more exclusive content),” he offered.

“We’d also note that the Xbox 360 has just been surpassed by the Wii in the US, despite Microsoft’s one year head start over Nintendo.

“We do think that the Netflix announcement is a significant addition for Xbox users, though its far more of a positive for Netflix than it is for Microsoft in our opinion.”

Microsoft dropped the price of the 20Gb US 360 SKU and announced a new, 60Gb machine just before E3 last week.

 

 

It,s A fair point when you look at both products.

Are ms taking the american market for granted?

http://www.videogaming247.com/2008/07/21/greenwald-very-sceptical-of-360-e3-price-adjustment/

More processing power is debatable, both have HDMI, and more exclusive content for the PS3 is highly debatable.

With that said, I'm skeptical of the price adjustment also. MS needs to get the price of the 360 down RIGHT NOW. It's coming close to 3 years with one $50 price cut... Ridiculous. It really shows how new to the manufacturing game Microsoft really is.

 




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reask on 21 July 2008
rocketpig said:
reask said:

Signal Hill’s Todd Greenwald has issued a damning statement on Microsoft’s E3 360 price adjustment today, saying that it’s not enough to differentiate the machine from PlayStation 3 in the US.

“We remain very sceptical of Microsoft’s pricing strategy and competitive positioning versus the PlayStation 3,” said the analyst in a research note.

“At $349, with a 60Gb hard drive, we just don’t think it is a compelling product compared with the PS3 at $399 with an 80Gb hard drive (along with more processing horsepower, Blu-ray, Wifi, HDMI, and going forward, more exclusive content),” he offered.

“We’d also note that the Xbox 360 has just been surpassed by the Wii in the US, despite Microsoft’s one year head start over Nintendo.

“We do think that the Netflix announcement is a significant addition for Xbox users, though its far more of a positive for Netflix than it is for Microsoft in our opinion.”

Microsoft dropped the price of the 20Gb US 360 SKU and announced a new, 60Gb machine just before E3 last week.

 

 

It,s A fair point when you look at both products.

Are ms taking the american market for granted?

http://www.videogaming247.com/2008/07/21/greenwald-very-sceptical-of-360-e3-price-adjustment/

More processing power is debatable, both have HDMI, and more exclusive content for the PS3 is highly debatable.

With that said, I'm skeptical of the price adjustment also. MS needs to get the price of the 360 down RIGHT NOW. It's coming close to 3 years with one $50 price cut... Ridiculous. It really shows how new to the manufacturing game Microsoft really is.

 

I would agree with you on those points but the bigger hd and br for 50 bucks extra means it is not great value for money in the us.

 



 

 

 

 

perpride on 21 July 2008

I don't know...to be completely honest with you I was hoping for a hundred dollar price cut so I could justify buying a second 360 (RROD'd first one RIP) just to play Gears.

The dude raises a good point that fifty dollars more for Blu-Ray, Wifi, etc., seems like very little, especially since Microsoft's always used the price difference as a tool against Sony.



Yojimbo on 21 July 2008

Microsoft wants to be profitable they wont be it if they make 100$ price cut. It can be that they might be harder for them to reduce the costs of the console then Sony? I was thinking about that they lost money this quarter and it might be for the Euro price cut.



 
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Tigawoods on 21 July 2008
perpride said:
I don't know...to be completely honest with you I was hoping for a hundred dollar price cut so I could justify buying a second 360 (RROD'd first one RIP) just to play Gears.

The dude raises a good point that fifty dollars more for Blu-Ray, Wifi, etc., seems like very little, especially since Microsoft's always used the price difference as a tool against Sony.

 

 Did you not send your console to MS for a new/refurb?

It is a very good point about the 50$ being a very minor step to getting Blue Ray Wi-Fi etc etc. Who knows maybe they will drop the price for real closer to the holidays.



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perpride on 21 July 2008

Not trying to sound like a fanboy either guys...but....the Cell absolutely pwns the Tricore 360 CPU.



reask on 21 July 2008
perpride said:
I don't know...to be completely honest with you I was hoping for a hundred dollar price cut so I could justify buying a second 360 (RROD'd first one RIP) just to play Gears.

The dude raises a good point that fifty dollars more for Blu-Ray, Wifi, etc., seems like very little, especially since Microsoft's always used the price difference as a tool against Sony.

My thoughts exactly again are they taking there biggest market for granted at there peril?

 



 

 

 

 

Burgles on 21 July 2008

..More exclusive conten....ROFLMAO!!!

The price is too high though...

If the ps3 had some decent games and its multiplats were equal to Microsoft I'd buy one.

The Xbox 360 should be at least $100 cheaper than the competeing ps3 model considering its got bluray...but then I suspect when the 80GB ps3 does show its face THAT is when ms will reduce the price another $50 or so.



perpride on 21 July 2008
Tigawoods said:
perpride said:
I don't know...to be completely honest with you I was hoping for a hundred dollar price cut so I could justify buying a second 360 (RROD'd first one RIP) just to play Gears.

The dude raises a good point that fifty dollars more for Blu-Ray, Wifi, etc., seems like very little, especially since Microsoft's always used the price difference as a tool against Sony.

 

Did you not send your console to MS for a new/refurb?

It is a very good point about the 50$ being a very minor step to getting Blue Ray Wi-Fi etc etc. Who knows maybe they will drop the price for real closer to the holidays.

I made the HUGE mistake of modding my first one. Never again.