I'm curious what you guys think of the higher prices of the 360, PS3, and Wii(edit: I realise the Wii is in a normal price range but I think that the other consoles spur research on all consoles) in regards to some of the mistakes they have made. A lot of folks on this sight (myself included) have from time to time eluded that the average consumer is almost completely oblivious to the console market and the nuiance between the different models and even the different systems.

But do people do more research when spending more money on a console then they normally spend?. Obviously not everyone is going to do more research so the question is meant to be in general. Also note that the question is worded to apply when a person is spending more than they normally would on a console, so please none of this "Well "xxxx console" only cost $yyy if you buy the zzz model!".

Also How much does negative information serve to deter would-be buyers due to problems with consoles (ie 360 failure rates, PS3 EE removal, Wii shortages/strap problems, etc...)?" Feel free to point out any other major problems these consoles have had, but the major idea here is, does knowledge of these problems really impact sales?

For me at least the examples I listed above weren't availabe when I purchased my Wii, and I think that the strap problem would of bothered me. Having a nice TV I think it would of concerned me a bit, HD TV's are not cheap. But it didn't bother me after the fact, and I actually still have my original "thin" straps on the remotes. I am saving the thicker ones for if the thin ones begin to wear or break, there are no small children in my home and I let all who play it know the straps are required. I also lucked out and got a system very early on ebay which included extra remotes, nunchuks, and games and paid about $20 more than the retail of everything, after shipping costs. I am pretty sure the taxes would of been pretty close to $20, so I was happy. However since that time I have endured some pretty painful searches when helping friends find consoles, and I have had to learn that smart shopping is better than lots of shopping (ie CALL CALL CALL). I can definately see where people are discouraged by shortages, but I don't know that I can blame nintendo for that directly.

But then more recently I have been trying to choose between the 360 and PS3 as my secondary console. And if I am being honest, the removal of the EE chip and the problems the 360 has have convinced me to push back a purchase of either console for at least a year. The 360 because I do have problems with MS, and I don't know that I will purchase a 360 if they don't do right by their customers (ie I think a recall of defective units is required). And with the PS3 it is two-fold, their price is way way above anything I would consider paying for a console, and to boot they are removing backwards compatability. I am more than willing to wait for the price drop if I have to, but the removal of the EE chip is in my mind designed to force people like me to buy (yes it also reduces costs, but there is more to the choice than just that). So now I am in a situation where both Sony and MS have made themselves and their products unattractive to me, while I am trying to decide which to buy. And all I can think is I am happier now more than ever that I purchased a Wii first and not one of the other two.

To a lot of you this may seem incredibly biased, and it probably is to some degreee. But I have owned a PS, PS2, every Nintendo Console, and while I never owned an xBox I used to do weekly Halo multiplayers with friends. I was also heavily looking forward to the PS3 when they announced the cell processor, something highly touted in the PC world actually. And I wasn't even considering the 360 when it launched, but have since given it a lot of thought. So I think in a lot of ways I am less biased then the majority of people who visit this site. But I am in no way afraid to call a spade a spade and point out the problems with a system. I really try to not get attached to one company or console, and go with the facts, but we are all human and I am sure we all have some bias on these issues.

I would love to hear your perspectives on buying experiences and any insight you folks might share on the concerns you wrestled with when choosing and how you feel now that you own the system.

Well the Wii definetly gains from its lower price, I mean i'd never plop down more than $300 on any gaming machine, and I consider myself to be a dedicated gamer.

Honestly I'm not sure most people do any research when buying a console ... The number of people who make a large purchase, like buying a car, on a whim is quite amazing; often the 'research' they do is ask their friends what they own/like which typically comes with biased answers.

With console's in particular I think people see an advertizement or hear about a game they would like and they seek out the system in store or online; when they see the unusually high prices ($400-$600) they flinch. Many may look at the spec sheet or ask the clerk their opinion but the information they get is usually meaningless or somewhat negative; they'll probably hear about Blu-Ray and HD-DVD which is not something most customers are interested in at the moment, or that the XBox 360 Core requires a $50 memory card and $50 a year for online gaming.

The Wii is honestly a fairly simple sell to the uninformed customers (which are probably the majority of customers). A Wii costs $250 and comes with a game and everything you need to play it, if you want an additional controller you can spend $50 on Wii play which comes with an a Wiimote and buy a $20 Nunchuck; for $320 you get a Wii, 2 Wiimotes, 2 Nunchucks, 2 Games and everything you need to play it (which makes it cheaper than a XBox 360, Memory Card and Wired Controller which may or may not come with a bundled game).

Don't the highest number of consoles get sold when it costs less than $250? Wasn't that true for XBOX and PS2? I think $200-250 is the mainstream price, regardless of how much of a good deal the WhateverGig model is.

I found this article interesting...even though it might be about price cuts it does give u a understanding of what prices consumers bought there consoles...

Source:  http://www.next-gen.biz/index.php?option=com_content&task=view&id=5883&Itemid=2&limit=1&limitstart=3

To see this, we first look at the sales of the PlayStation 2 and ask: how many people bought that console at each of its five prices? The chart below answers that question:




As you can see, only 24% of all PlayStation 2 systems in North America sold at $300. The remaining 76% sold for $200 or less with $150 being the most popular price by a small margin. Certainly time plays a factor there -- the $150 system price was in place for longer than any other -- but Sony would likely not have kept that price if it weren't selling systems as a rate they found acceptable.

The Xbox, like the PlayStation 2, also started at $300 but remained at that price for a far shorter time. Using the same method used to analyze the PlayStation 2 above, the graph below tells the story:









A mere 13% of all Xboxes were sold at the highest price, $300, while over 42% went for $150. A closer look at the data shows that the drop from $300 to $200 did spur sales, but the drop to $180 hardly changed the number of systems bought per month. By comparison, the drop to $150 pushed Xbox sales above 200,000 systems per month and kept them there until May 2005, the month that the Xbox 360 was announced.

Finally, here is the graph for the GameCube's pricing:

The GameCube is a bit of an odd man out, since it started at $200 and only went down from there. It also sold the fewest systems, which demonstrates that being below $200 isn't the sole determining factor to average consumers. While most GameCubes were sold at the $100 level, it is important to note that the rate at which the system sold each month was not significantly improved in the long term by that price drop. The GameCube stayed at that price for over 3.5 years, which essentially explains why 60% of those systems were sold at that price.

Finally, we can look at the graph of the average price of each system in the last generation:






The average PlayStation 2 consumer paid a hair under $200 for his console. The Xbox, at about $188 on average, fares a bit better than the GameCube with its average price of $127. Should we be surprised that the Xbox 360 and PlayStation 3 have failed to live up to sales expectations, given that their prime products -- the Xbox 360 Premium and 60Gb PlayStation 3 -- retail for two to three times the average of that consumers have been paying?

And is it any surprise that the Wii, priced at just $50 over the magic $200 barrier, is selling so well? There is ample room to argue that price isn't everything -- Nintendo's own GameCube proved that point amply -- but if a system can approach the price which moved the majority of systems in the past seven years and can offer a compelling experience at the same time, then that can post record sales month after month. The history of PlayStation 2 sales and recent trends in Wii sales seem to support that argument.

...Or Not

Certainly we can use history as a guide, but there are limits to its use for prognostication. The price drops this generation may happen in ways entirely different from what has been suggested above.

Maybe the $300 console this generation will be what the $200 console was last generation. Maybe Microsoft will forge ahead with its current price structure until after Halo 3 has come and gone. Maybe Sony will bless the PlayStation 3 with a 33% price drop sometime this year. And maybe Nintendo will give the Wii a small price drop by removing Wii Sports from the package.

Those could happen, but don't bet on it.

to my conclusion there is so many variables into determining price increasing awareness...u have games to worry about...i look at like this...if the console maker NINTENDO, SONY, MICROSOFT EVER AND I MEAN EVER CANCEL A CONSOLE I WILL NEVER SUPPORT THAT CONSOLE MAKER AGAIN!!! i had to get that off my chest..XD

@Tetsuya,

Nice find. I had posted that a few months ago. It is incredibly insightful

On Topic: With the ease of the internet, I would not be surprised if most people research their purchases now a days. Money is a big factor, and I highly doubt people by these consoles with out any research (though some of that research could be friend/family advice).