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Forums - Microsoft - 360 price cuts might be needed to combat "stagnant demand"

Why are there so many of these threads just before the Xbox 360 price cut?

1. We know its coming.
2. Since we're so close to getting the initial data for the pricecut, why do we need to speculate?



Tease.

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mrstickball said:
dbot -

If Microsofts move is desperate, what was Sony's move last November?

Equally desperate.

Edit: The original PS3 sku's were a mistake.  Sony misjudged the willingness of gamers to pay $500 - $600.  The original PS3 should have been the current 40 gig model at $400.  Sony realized it had a problem and value engineered out some cost to create the 40 gig. 



Thanks for the input, Jeff.

 

 

The 360 is stagnating right now due to being on the market for almost three years without a huge price cut. It's not an admission of defeat to lower the price, unless you want to call the PS3s' $200 adjustment an admission of complete failure.

The 360 has understandably just about saturated the market that will buy it at its' current price. People have been asking for a drop for a looong time. The drop WILL make it more competitive, and it's absolutely the right thing for them to do.



Could I trouble you for some maple syrup to go with the plate of roffles you just served up?

Tag, courtesy of fkusumot: "Why do most of the PS3 fanboys have avatars that looks totally pissed?"
"Ok, girl's trapped in the elevator, and the power's off.  I swear, if a zombie comes around the next corner..."
Griffin said:
I'm not even sure these massive price cuts can save the 360 from the inevitable down fall to third place. The market has spoken and it will be the PS3 with the lead by a decent amount.

 

Poor 360.  Nothing but lamentable 3rd place to look forward to.  Oh wait, that's where the PS3 has been for the last couple of years and will probably remain for another year.

Why criticise a company for making price cuts when it can afford to do so?  Didn't the 360 stay at the same price it launched at for longer than any other console.  As already stated quite eloquently by mrstickball, the 360 was designed to be cheaper than the PS3 because it didn't include wifi and blu-ray.  Why then are some people stating that the PS3 would easily sell more than the 360 if they cost the same? 



Krill said:
Griffin said:
I'm not even sure these massive price cuts can save the 360 from the inevitable down fall to third place. The market has spoken and it will be the PS3 with the lead by a decent amount.

 

Poor 360.  Nothing but lamentable 3rd place to look forward to.  Oh wait, that's where the PS3 has been for the last couple of years and will probably remain for another year.

Why criticise a company for making price cuts when it can afford to do so?  Didn't the 360 stay at the same price it launched at for longer than any other console.  As already stated quite eloquently by mrstickball, the 360 was designed to be cheaper than the PS3 because it didn't include wifi and blu-ray.  Why then are some people stating that the PS3 would easily sell more than the 360 if they cost the same? 

No, the Wii has     But the 360 stayed at its' launch price longer than any PREVIOUS console.

*agree with everything else you said.

 



Could I trouble you for some maple syrup to go with the plate of roffles you just served up?

Tag, courtesy of fkusumot: "Why do most of the PS3 fanboys have avatars that looks totally pissed?"
"Ok, girl's trapped in the elevator, and the power's off.  I swear, if a zombie comes around the next corner..."
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How could Sony's price cut be a move of desperation ?

The PS3 was cut to a price where many of the people who wanted PS3's were able to buy PS3's , the XBOX 360 was cut to a price where people who were maybe unsure about which console they wanted , wanted to buy PS3's , had no interest in HD consoles could adopt a HD console for a minimal cost.

Sony had the higher price point and it wasn't reduced purely because the consumer didn't see it as good value for money but because it's far more than what the average customer can afford.

The XBOX 360 is already within what many people can afford for a console but there obviously isn't alot of interest in the XbOX 360 relative to it's competition ,if it is selling worst than it's already more expensive competitor.This isn't neccaserily a mvoe of desperation ( giving away 360's for free would be desperation ).




Krill said:
Griffin said:
I'm not even sure these massive price cuts can save the 360 from the inevitable down fall to third place. The market has spoken and it will be the PS3 with the lead by a decent amount.

 

Poor 360.  Nothing but lamentable 3rd place to look forward to.  Oh wait, that's where the PS3 has been for the last couple of years and will probably remain for another year.

Why criticise a company for making price cuts when it can afford to do so?  Didn't the 360 stay at the same price it launched at for longer than any other console.  As already stated quite eloquently by mrstickball, the 360 was designed to be cheaper than the PS3 because it didn't include wifi and blu-ray.  Why then are some people stating that the PS3 would easily sell more than the 360 if they cost the same? 

It was designed to be CHEAP not cheaper.  That is why one of the 360's problems cost M$ over a billion dollars(RRoD).

If the PS3 & the 360 were the same price, the ps3 would sell better because it has sold better since Nov. 07 while being "more expensive".  Regardless of the $200 arcade, ps3 sales will pass 360 sales sometime next year, about half way through the planed life cycle of both consoles.

 



mrstickball said:
dbot -

If Microsofts move is desperate, what was Sony's move last November?

Extremely Desperate.....come on we had to see the black beast having an epic duel with the GBA....

 



All hail the KING, Andrespetmonkey

Tigawoods said:

To answer the original question, I think MS could compete if it didnt lower its prices but it would be a competetion where a big release on Week A will push the 360 ahead of the PS3 for Week A while Week B will prolly see the PS3 moving ahead again.  Now obviously lowering the prices especially levels the playing field and makes the 360 a lot more competitive. Lets face it the closer the price of the 360 is to the PS3 the worse sales will continue to be for the 360. The PS3 has more things to offer via hardware than the 360 does. While that has been the double edged sword for them this gen (starting price point 600 USD) it will also help them in the end.

To the point of games this year i've questioned Microsoft's strategy a bit since it hardly released any exclusives and has had a drought imo. While big multiplatform games came out such as GTA, BF Bad Company, Rainbow 6 and others, there have been few 360 exclusives released to get more ppl to gravitate to the system. I think that has caused a bit of a dry spell for the 360.

@Skeeuk Now yesterday you called the 360 price drop desperate which I do not agree with. Now looking at the only real price drop in 3 years it seems to be on track at a regular financial cycle. It may seem desperate that while the the 360 sales have slowed down some that they are just now reducing the price. But how long has the 360 price point been the way it is and the PS3s price point been the way it is? Now it would be desperate if when the 200$ PS3 price drop occurred then 1 month later the 360 price drops. That would seem desperate to me. But they didnt, the 360 kept the same price. Considering what the price points were for each console when the PS3 released, this price drop seems to be directly in stride with what the price point needs to be at to get more sales.

Also with the original 200 USD price drop of the PS3 and and if that price drop of the PS3 happened this year (theoretical but I doubt its going to happen) that would be 2 price drops in two years totaling at least 250 dollars assuming the next price cut will be 50 dollars at least. Cutting the PS3 price now would seem desperate and IMO a bad business move since it sells great as is. Now if the 360 price cut ends up boosting its sales significantly than a price cut along with a possible GOW 3 release in Q1 2009 (theory) would be a great business move without looking desperate as they get the bigger money off the consoles sold during the holiday season and the generate more software/hardware sales during the first of the year.

With these comparisons I do want to know why you think the price cut is desperate Skeeuk. This is not a knock against you or your opinions, just a healthy debate.

youve confused me on that one, 360 is cheaper than ps3, its cheaper-----------------

thats all that matters is that its cheaper, if you have a cheaper console with a more quantity of games then why would you go cheaper still. obviously a even more cheaper 360(isnt so cheap if you put addons onto it) will sell more than what its doing now. but mabey that could only be temporary boost.

in EU the 360 only had a temporary boost, my last 360 i bought was for £159 yes £159 for a 360 with a game, but ps3 still sells more, could it be possible after the initial boost ps3 will still sell more?

i predict after all dust settles ps3 will still sell more, if im wrong im wrong i always welcome to be proven otherwise.

 



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Million said:

How could Sony's price cut be a move of desperation ?

The PS3 was cut to a price where many of the people who wanted PS3's were able to buy PS3's , the XBOX 360 was cut to a price where people who were maybe unsure about which console they wanted , wanted to buy PS3's , had no interest in HD consoles could adopt a HD console for a minimal cost.

Sony had the higher price point and it wasn't reduced purely because the consumer didn't see it as good value for money but because it's far more than what the average customer can afford.

The XBOX 360 is already within what many people can afford for a console but there obviously isn't alot of interest in the XbOX 360 relative to it's competition ,if it is selling worst than it's already more expensive competitor.This isn't neccaserily a mvoe of desperation ( giving away 360's for free would be desperation ).

Your assumption: "The PS3 was cut to a price where many of the people who wanted PS3's were able to buy PS3's , the XBOX 360 was cut to a price where people who were maybe unsure about which console they wanted , wanted to buy PS3's , had no interest in HD consoles could adopt a HD console for a minimal cost." is flawed by your personal preference.

In other words you are saying, there is ONLY demand for the PS3, that could not be realized until a price cut.  While the ONLY demand for the 360, is as a cheaper alternative to the PS3. 

I wonder, do you actually believe that?