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Forums - Sony Discussion - Why the 360 pricecuts will never work.

souixan on 16 September 2008

While I agree PS3 has had no price cut I'll also say in the eyes of Average Joe Casual the and Average Jane Casual, you know the guys who buy a majority of the consoles sold? It has had revisions sell outs and changes made which could create more wonder as to the hard wares stability than you may think among the casuals who basically decide or market leader.

Constant changing of a platform can be more detrimental than good even if the result is a price decrease. A price drop tends to make people think nothing of it, just a reduction in cost.

Now am I saying reducing the price will make you a smash hit, not by any means. Am I saying revision will 100% surely hurt your bottom line, not at all. I'm saying that a price reduction will place no ill will at the consumer end, only good will. A hardware revision will create angered early adopters(not all but some) and second thoughts on the end of uneducated consumers who will wonder, 'why the change?'



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Jandre002 on 16 September 2008

Well I think the fact that the cheaper console had to cut it prices in order to remain competitive is telling. I don't think I would call the 360 a dreamcast, but even with price drops it seems like it can't replace the PS3 as the PS2 successor.

What I think is happening is that we are seeing separation between how people view the 360. Originally they wanted to be the sequel, and it was working for awhile. But now the PS3 has created separation with its future software lineup and, oddly enough, its price.

The 360 can't shake the image of being "that old console that plays Halo." To many its not as fresh as the PS3, and global price drops just reaffirm that. People aren't dying to get their hands on an HD console right now because they can play a Wii. To get consumers to be interested the 360 needs new software not lower price. I really can't wait to start seeing new LBP commercials. I think the buzz surrounding the PS3 this fall will be huge and the 360 will be in trouble still even with price drops.

Will the 360 be dead? Maybe not anymore. It will actually sell better this year than last. Even still, the PS3 is selling so well ATM that the 360 can't keep up. Now if the PS3 reaches $350 or better yet $299 in the next few months THEN we will see the 360 being in serious trouble.



Arkk on 16 September 2008
Soul_tech10 said:
now matter how cheaper the ps3 is now compare to last year or '06, it was never officially called a price cut, it's called a hardware revision. there have only been temporary price cuts to bring in a DIFFERENT lower priced model. Sony only reduced the price of the 80GB in usa, the rest was never officially announced as a price cut, they never said: hey world were cutting the price of the ps3. they said we are bringing in our fourth hardware revision where we have took away some features to make it cheaper to produce" thats it.
the dreamcast sold around 10 million.
this is in the sony section of the forums cos i wanted it to be a sony thread but then this idea came up and i forgot to change threads, sorry.

No matter howmuch you want to believe that, or no matter how much you want Sony to pay you, no one looks at these price cuts as "hardware revisions" (except for you and Sony). They WANT the public to see them as price cuts. They WANT the public to percieve the devices as affordable. Why would they want the public to see them cutting prices because they are getting an inferior product? Why are you even bringing this up?

 



Just kiss the tip.


Arkk on 16 September 2008
noslodecoy said:
Soul_tech10 said:

All of you (or most) believe that the PS3 has had a price cut or two, but it hasn't, its only had clearance sales and hardware revisions.

The reason why the PS3 now is cheaper than the PS3 in 2006/07 is because it has had a major hardware revision that costs less to produce and buy.

it has had no premanent price cuts just like the Wii, not only that but it is still seling more than the 360 that has had up to 5 price cuts this year alone worldwide.

This goes to prove that the price of the PS3 determains its value in the market, same as the Wii, many believe (including me) that the 360 price cuts are all acts of desperation, for instance, Europe is about to see its second price cut in over 4 months, which won't work anyway because the last price cut didn't, and it isn't having that much of an effect in the USA either, which when you compare the first day of the price cut in the USA to the first day of MGS4 being out where the PS3 had a boost of over 200,000 units worldwide, you'll see that there is a major difference.

I admit that i have said the following on other posts before but, Microsoft is creating its very own "Dreamcast effect" where the price of the product is priced too low to convince the consumer that the said product is worth buying, and that it's actually efficient.

In mainland Europe, the 360 isn't respected as much as the PS3, no one likes it (i would know cos i live in italy), for instance, in my local games store which is massive, the stocks of 360 and PS3 are compareable to PS3 and Wii last year respectively, in other words there are no PS3's available once they come into the shop, and the 360 area is full of them, it's also deserted.

Now we can all admit that the 360 has failed and Microsoft is in a state of total desperation, hence the ridiculous number of failed price cuts.

 

Here's a BBC article stating "Sony Offers Cut-Price Playstation".  Your perception of a price cut is nothing more than an exercise in twisting semantics.  Sony had to modify the hardware with the price-cuts due to the costs to produce the console.  Microsoft is much closer to profitibility with their console.

Also, "Dreamcast Effect" seems to be a buzzword these days as I've seen it mentioned alot by people spouting doom and gloom for the 360.  The irony, is that many of these members also seem to agree that a $199.00 PS3 would dominate the market.

The PS2 was priced at $299.00 in the start of 2002.  They dropped the price $100.00 that year down to $199.00.  That was less than 2 years on the market and $100.00 less than it's competition with the XBox at that time (the Xbox later responded). [source]

Please, I'd like to read the spin on how that was acceptable for the PS2 at the time, but a price cut now for the 360 will only spell disaster.

This is a very well put together post and i agree with you.

 



Just kiss the tip.


Fei-Hung on 16 September 2008

well according to MS the 360 has shed its price only due to cost reduction; the same as the 360. :D

that alone makes this thread a fail! Also, Dreamcast didn't sell no where near as much as the 360. It would be better to compare the xbox to the dreamcst and even then, it outsold the dreamcast!



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Pharaoh on 16 September 2008

Everyone seems to forget them 360 was out a whole year before the PS3, the first year that it was out it sold 5.2 million units compared with 0 PS3s. So in fact they aren't in 3rd place because their are in different times in their lifespans.

The continued price cuts, (whether fire sales or discontinued SKUs), by the 360 will leave them with an "inferior" market perception about their product. Yes people will buy it at the beginning of its price cut, but after that you are left with a market perspective of inferiority.

You can not compete on price alone, which Microsoft should have realized already. The Wii has an overlapping target market that does not compete on price, (it hasn't had a price cut). So you can't use the Wii's success as plan to sell more 360, you think Microsoft executives would know this.



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Cactus on 16 September 2008

I didn't read the posts so forgive me if I copied what anyone said, but this pricecut (I mean worldwide) is win/win for Microsoft.

This will not only increase sales, but if Sony also decides to counter and cut the price of the PS3, they will go further into the red.



mrstickball on 16 September 2008
Soul_tech10 said:

All of you (or most) believe that the PS3 has had a price cut or two, but it hasn't, its only had clearance sales and hardware revisions.

The reason why the PS3 now is cheaper than the PS3 in 2006/07 is because it has had a major hardware revision that costs less to produce and buy.

it has had no premanent price cuts just like the Wii, not only that but it is still seling more than the 360 that has had up to 5 price cuts this year alone worldwide.

This goes to prove that the price of the PS3 determains its value in the market, same as the Wii, many believe (including me) that the 360 price cuts are all acts of desperation, for instance, Europe is about to see its second price cut in over 4 months, which won't work anyway because the last price cut didn't, and it isn't having that much of an effect in the USA either, which when you compare the first day of the price cut in the USA to the first day of MGS4 being out where the PS3 had a boost of over 200,000 units worldwide, you'll see that there is a major difference.

I admit that i have said the following on other posts before but, Microsoft is creating its very own "Dreamcast effect" where the price of the product is priced too low to convince the consumer that the said product is worth buying, and that it's actually efficient.

In mainland Europe, the 360 isn't respected as much as the PS3, no one likes it (i would know cos i live in italy), for instance, in my local games store which is massive, the stocks of 360 and PS3 are compareable to PS3 and Wii last year respectively, in other words there are no PS3's available once they come into the shop, and the 360 area is full of them, it's also deserted.

Now we can all admit that the 360 has failed and Microsoft is in a state of total desperation, hence the ridiculous number of failed price cuts.

Using your logic of "The PS3 has never had a price cut. Only hardware revisions that made the models cheaper", than the X360 has only had 1 price drop in Europe, which was in March.

07's pricecut was due to the Falcon revision. This most recent one worldwide was due to Jasper. Again, that's using your logic.

Care to rebut?

 



Back from the dead, I'm afraid.

Shadowblind on 16 September 2008

OH NOEZ, THE 360 IS DOOMED! OH LORD, WHATEVER WILL M$ DO NOW??????

Haha, but seriously, why is this in the Sony forums/still unlocked? I'm still trying to figure out why some people are actually bothering to refute this with logic...still, it made my day. Funny stuff.



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

.jayderyu on 16 September 2008

Sony fans insecurity is way up lately. Ahh I rember the days of the Nintendo fan insecurity. It's like watching a mirror into the past.

I think the OP needs to stop justifying his beliefe that he made the right purchase. Play some games and just enjoy what he has and will get. This isn't about sales discussion, this is just I want Company X to win and here is why. We aren't PR. We are not paid as PR. We are consumers who pay money to enjoy gaming.



Squilliam: On Vgcharts its a commonly accepted practice to twist the bounds of plausibility in order to support your argument or agenda so I think its pretty cool that this gives me the precedent to say whatever I damn well please.