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Forums - Sales - Can Microsoft afford another price cut??? erm NO

psrock on 04 September 2008
TheTruthHurts! said:
@psrock....4 mil sounds realistic....compared to a lot of the other UN-realistic (PS3 less than 2mil Jan 2009) crap that floats around. Thanks for keeping it real.

 

MS wont go down like that so easily, i wish sony would fight like this espacially in Japan.



 Next Gen 

11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)
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S.T.A.G.E. on 04 September 2008
psrock said:
I expect the lead to be cut to 4 million by next year.

 

With this price drop theres no way that will happen. By the end of this year the 5 mil lead could stretch to 6-7 mil. The price drop is what changed my numbers. It probably would've been a 3-4 million lead without the price drop.



S.T.A.G.E. on 04 September 2008
TheTruthHurts! said:
@psrock....4 mil sounds realistic....compared to a lot of the other UN-realistic (PS3 less than 2mil Jan 2009) crap that floats around. Thanks for keeping it real.

 

If you say 4 mil, you are denying the impact of the price cut.



psrock on 04 September 2008
S.T.A.G.E. said:
psrock said:
I expect the lead to be cut to 4 million by next year.

 

With this price drop theres no way that will happen. By the end of this year the 5 mil lead could stretch to 6-7 mil. The price drop is what changed my numbers. It probably would've been a 3-4 million lead without the price drop.

 

Just like the price drop in Europe, right? 



 Next Gen 

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JaggedSac on 04 September 2008
psrock said:
S.T.A.G.E. said:
psrock said:
I expect the lead to be cut to 4 million by next year.

 

With this price drop theres no way that will happen. By the end of this year the 5 mil lead could stretch to 6-7 mil. The price drop is what changed my numbers. It probably would've been a 3-4 million lead without the price drop.

 

Just like the price drop in Europe, right? 

VGChartz Hardware data for the period 05th Jan 2008 to 30th Aug 2008:


Console X360
UK
644,540
France
207,573
Germany
139,064
Spain
139,646
Italy
156,925
Scandinavia
107,401
Other Europe
214,116

VGChartz Hardware data for the period 06th Jan 2007 to 25th Aug 2007:


Console X360
UK
399,755
France
83,169
Germany
87,223
Spain
48,055
Italy
74,413
Scandinavia
65,127
Other Europe
120,757


Something caused an increase in sales for the 360.  It just isn't as big as the competition, but it is definitely good for M$.

 



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S.T.A.G.E. on 04 September 2008
psrock said:
S.T.A.G.E. said:
psrock said:
I expect the lead to be cut to 4 million by next year.

 

With this price drop theres no way that will happen. By the end of this year the 5 mil lead could stretch to 6-7 mil. The price drop is what changed my numbers. It probably would've been a 3-4 million lead without the price drop.

 

Just like the price drop in Europe, right? 

 

LOL...You don't understand how badly the majority of Americans love price drops.



Shadowblind on 04 September 2008
psrock said:
S.T.A.G.E. said:
psrock said:
I expect the lead to be cut to 4 million by next year.

 

With this price drop theres no way that will happen. By the end of this year the 5 mil lead could stretch to 6-7 mil. The price drop is what changed my numbers. It probably would've been a 3-4 million lead without the price drop.

 

Just like the price drop in Europe, right?

 

 Europe =/= America. At least not last time I checked. Things could have changed in the last hour though.

 

Kinda like Switzerland =/= Japan and Superman Returns =/= The Dark knight.



GOTY Contestants this year: Dead Space 2, Dark Souls, Tales of Graces f. Everything else can suck it.

psrock on 04 September 2008
JaggedSac said:
psrock said:
S.T.A.G.E. said:
psrock said:
I expect the lead to be cut to 4 million by next year.

 

With this price drop theres no way that will happen. By the end of this year the 5 mil lead could stretch to 6-7 mil. The price drop is what changed my numbers. It probably would've been a 3-4 million lead without the price drop.

 

Just like the price drop in Europe, right? 

VGChartz Hardware data for the period 05th Jan 2008 to 30th Aug 2008:


Console X360
UK
644,540
France
207,573
Germany
139,064
Spain
139,646
Italy
156,925
Scandinavia
107,401
Other Europe
214,116

VGChartz Hardware data for the period 06th Jan 2007 to 25th Aug 2007:


Console X360
UK
399,755
France
83,169
Germany
87,223
Spain
48,055
Italy
74,413
Scandinavia
65,127
Other Europe
120,757


Something caused an increase in sales for the 360.  It just isn't as big as the competition, but it is definitely good for M$.

 

but did it grow its lead on the ps3? no 

Yes, the pricecut will help a lot, but not as much as you guys think. The 360 has always been cheaper than the ps3. And, it will only affect the NA territories. Others will make up the differences.



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11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)
chenguo4 on 04 September 2008
S.T.A.G.E. said:
chenguo4 said:
S.T.A.G.E. said:
chenguo4 said:
TheTruthHurts! said:
S.T.A.G.E. said: I'll buy the system, but I cannot deny when I see progress that I never thought that i'd see out of MS.

This sentence from a consumer is why MS is doing so well this Gen. MS's gaming division is listening to the consumers, making great games, and cutting prices. All (WINS), heading into a big holiday season. Especially when you have a console (Effective Sept 5th) that is now $200 dollars cheaper than its direct competitor.

Wow....I cant wait to see the numbers in January.

 

The $199 arcade technically is more in competition with the Wii. Holiday shopping is very much price dictated, and people looking to spend ~200-250 on a console will be deciding between the Wii and the Arcade. The Wii, if they can find one, should win if this gen has taught us anything. 

 

The Premum and Elites are gonna be the ones competing with the PS3, and they are at what, $299 and $399? So they only drop $50. It'll definitely have an effect, but when the PS3 is only $100 more than the Premium, and same price as the Elite, it wont make too much difference.

 

 The $199 may be in competition with the Wii, but Microsoft is more focused on giving Sony a heart attack.

 

Well, my point wasn't what MS is trying to do. My point is, the Arcade wont be as successful as people think because the Wii's already got the low-price market cornered.

 

 

 

Microsoft cannot face off with Nintendo for this reason aside from what you're saying. Nintendo's consoles production costs are around $180. They can afford to drop the Wii down $100 if they want. They've been making profit off of name value and the new casual market. This is why I could care less to talk about them. I'm not worried about Nintendo going up against Microsoft. I'm happy for Nintendo and they stand alone this gen.

 

??? I think you want to argue with me, but you're agreeing with me?

I'm saying, MS's goal for the 199 Arcade is the fight the PS3. It will have an effect, but much less than people think because the there is already a more popular console at a similar price: the Wii.

And this is what I'm getting from you: Nintendo can easily drop the price and still be profitable from the casual market. I'm happy for them.

 

I think what you're trying to say is that the 360 and the Wii market to different demographics?

Which is true, but consider, the hardcore demographic will likely want a console that's not as gimped as the Arcade (no hard drive), they'd prefer to go for the higher 360s or the PS3.

Which goes back to my original point: the 60GB 360 has been selling at $299 for a month now, and it's not really helping MS beating the PS3. The Elite is the same price as the PS3, so it's not gonna help much. The Arcade will help, but much less than people think because a low tier such as it will appeal mostly to casuals, who prefer the Wii.

So basically:

High price: PS3 will sell much better than 360.

Low price: Wii will sell much better than 360.

The 360 will have a foot in each market, but underwhelmingly so, and I think that even if you add it up it wont amount to enough to overcome the PS3 for more than a couple of weeks.




PSN: chenguo4
Current playing: No More Heroes

S.T.A.G.E. on 04 September 2008
chenguo4 said:
S.T.A.G.E. said:
chenguo4 said:
S.T.A.G.E. said:
chenguo4 said:
TheTruthHurts! said:
S.T.A.G.E. said: I'll buy the system, but I cannot deny when I see progress that I never thought that i'd see out of MS.

This sentence from a consumer is why MS is doing so well this Gen. MS's gaming division is listening to the consumers, making great games, and cutting prices. All (WINS), heading into a big holiday season. Especially when you have a console (Effective Sept 5th) that is now $200 dollars cheaper than its direct competitor.

Wow....I cant wait to see the numbers in January.

 

The $199 arcade technically is more in competition with the Wii. Holiday shopping is very much price dictated, and people looking to spend ~200-250 on a console will be deciding between the Wii and the Arcade. The Wii, if they can find one, should win if this gen has taught us anything. 

 

The Premum and Elites are gonna be the ones competing with the PS3, and they are at what, $299 and $399? So they only drop $50. It'll definitely have an effect, but when the PS3 is only $100 more than the Premium, and same price as the Elite, it wont make too much difference.

 

 The $199 may be in competition with the Wii, but Microsoft is more focused on giving Sony a heart attack.

 

Well, my point wasn't what MS is trying to do. My point is, the Arcade wont be as successful as people think because the Wii's already got the low-price market cornered.

 

 

 

Microsoft cannot face off with Nintendo for this reason aside from what you're saying. Nintendo's consoles production costs are around $180. They can afford to drop the Wii down $100 if they want. They've been making profit off of name value and the new casual market. This is why I could care less to talk about them. I'm not worried about Nintendo going up against Microsoft. I'm happy for Nintendo and they stand alone this gen.

 

??? I think you want to argue with me, but you're agreeing with me?

I'm saying, MS's goal for the 199 Arcade is the fight the PS3. It will have an effect, but much less than people think because the there is already a more popular console at a similar price: the Wii.

And this is what I'm getting from you: Nintendo can easily drop the price and still be profitable from the casual market. I'm happy for them.

 

I think what you're trying to say is that the 360 and the Wii market to different demographics?

Which is true, but consider, the hardcore demographic will likely want a console that's not as gimped as the Arcade (no hard drive), they'd prefer to go for the higher 360s or the PS3.

Which goes back to my original point: the 60GB 360 has been selling at $299 for a month now, and it's not really helping MS beating the PS3. The Elite is the same price as the PS3, so it's not gonna help much. The Arcade will help, but much less than people think because a low tier such as it will appeal mostly to casuals, who prefer the Wii.

So basically:

High price: PS3 will sell much better than 360.

Low price: Wii will sell much better than 360.

The 360 will have a foot in each market, but underwhelmingly so, and I think that even if you add it up it wont amount to enough to overcome the PS3 for more than a couple of weeks.

 

Obviously I'm agreeing with you. I guess it doesn't come out right some times.