By using this site, you agree to our Privacy Policy and our Terms of Use. Close

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

crumas2 on 03 September 2008
Rock_on_2008 said:
The X360 is in a later stage of its life in comparison to the PS3 and Wii. X360 has been on the market for around three years. Its competitors have only been on market for two years. X360 needs to reduce its price to stay in the game. X360 has a large library with more games on the way. But as a product ages the demand for the product decreases if it remains at the same price. Price must be reduced as the performance of the product increases over time. X360 I believe has around 2 years left on the market, before we see the next MS console. Maybe XBox 3000 could be the name of MS new console. Time will reveal all.
By November 2010 new MS console should be launched with all the bells and whistles. It will be launched in NA and Europe. I would not count on a Japanese launch of the next MS console.

 

Very well said.



Around the Network
JaggedSac on 03 September 2008

I thought stagnation meant staying the same. It is up year over year isn't it?



dbot on 03 September 2008
Tigawoods said:
dbot said:
Tigawoods said:

Well most ppl on here call it a 200$ price drop and its generally accepted. It's much easier to type that then "introduced a new SKU that is simlar to the original at 200 USD less." Terminology is irrelevant to the topic at hand. Im going back to college to get a bachelor's in Marketing to go along with my masters in Engineering. So I like talking about the sales and strategies as long as its civil and reasonable. Theres no point in talking about it if someones going to come in here and say "lawl 360 RROD" or "delaystation" etc etc

Launch price of the PS3 was $500.  That price was lowered to $400.  How much of a price cut is that?  We don't need to discuss the fact that it is essentially a different product.

 

 

 Well instead of answering my reply some 10 posts ago you decided to correct an irrelevant piece of terminology that everyone on this site has said/seen b/f and hasnt cared about. All of this happening after you said the clearance sale in America was a price cut this year. You can continue debating this to yourself.

My intent was to reply to your original claim that the PS3 had a $200 price cut instead of the actual $100 price cut.  I think I have clarified that for you.  Following your accepted definition that lowering the barrier of entry is the equivalent of a price cut, the Arcade dropped from $299 to $279 and the Pro dropped from $350 to $300 already this year.  Both cuts lowered the barrier to entry, so by your definition they are price cuts. 

 



Thanks for the input, Jeff.

 

 

Groucho on 03 September 2008

MS is dropping the price on the 360, to undercut the Wii during the holiday season, in addition to being more competitive with the PS3.

The holidays are much more about price point than value to the buyer -- because the items are often not purchased for the buyer.

The PS3 has a great deal of value. During the holiday season, as the most expensive/valuable console, it may lose some ground to the 360 and Wii, because price point becomes more important than value for the duration of the gift buying season.  People tend to buy valuable items for themselves or occasionally as very specific, highly desired gifts.  Commonplace gifts are about price point.

Sad but true.

The Wii has the advantage of being highly desirable to children, so it'll get a lot of very specific requests.  The PS3's value really appeals to adults more than kids though -- HD consoles purchased as gifts will be price-point oriented, except in circumstances where one brand was specifically requested over the other, or where the purchaser is really buying the gift for him/herself, and seeing the game-playing as a side benefit for someone else (i.e. PS3 for BluRay, +games for kids).