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Forums - Sales - At what point do price drops become desperation and a joke?

omgwtfbbq on 15 August 2007
jjseth said:
llewdebkram said:

PS3 and Xbox 360 both have had or are about to have price drops of some sort.

If Microsoft lowered the price of an XBox360 to $10 and therefore took a huge lead in the console wars numbers would it be a victory?

At what point does it become a desprate measure and a joke?

With most products I'm sure 'when it loses money' would be the answer.


OMG! The mercedes dealer here in town had a price drop... Oh wait, they are trying to clear inventory?

Every product has a price drop eventually and only a rare exception would it not. Name one console that was successful that never had a price drop? When the Wii cuts their price can I call that a desperation move or a joke?

Then again, the joke is on Wii owners who are paying $250 for a souped up $50 gamecube with a motion controller that costs maybe $50.

We are talking about jokes? Right? Anyone?

Me so sorry, but I couldn't help it.

erm... your point is? maybe you should stop being a smartarse and actually read the post.

He never said all price drops were jokes. In fact, he quite clearly implied that they weren't all acts of desperation. The question was "when does it become an act of desperation". For example, if Sony dropped the price of the PS3 to $100 right now, that is an act of desperation. You could have attempted to answer this question rather than derailing this thread by being a smartarse.

 



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white devil on 15 August 2007

Isn't there kind of a limit to how far you can lower your price legally? I forgot what it was called, but it's applied to companies selling a similar product at far below market price to kill the competition, and gain a monopoly.



your mother on 15 August 2007
llewdebkram said:

PS3 and Xbox 360 both have had or are about to have price drops of some sort.

If Microsoft lowered the price of an XBox360 to $10 and therefore took a huge lead in the console wars numbers would it be a victory?

At what point does it become a desprate measure and a joke?

With most products I'm sure 'when it loses money' would be the answer.


HAHAHAHAHAHAHAHA... sorry, you were saying something? 



famousringo on 15 August 2007
llewdebkram said:

PS3 and Xbox 360 both have had or are about to have price drops of some sort.

If Microsoft lowered the price of an XBox360 to $10 and therefore took a huge lead in the console wars numbers would it be a victory?

At what point does it become a desprate measure and a joke?

With most products I'm sure 'when it loses money' would be the answer.


If that were the answer, Sony and Microsoft would have both entered this generation a "desperate joke." That doesn't make much sense, especially for Sony.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

famousringo on 15 August 2007
ssj12 said:
Its a joke when you lower your console $50 - $70 and it doesnt even double the sales.

But no Sony's price drop wasn't desperate. They released a new SKU to take the 599 model's place didnt they? yep the 80GB is now in place and the 60 is being phased out like the 20GB model was.

I think the true price drop will happen in November when the PS3 turns 1 in the USA and Japan or when the 60GB is sold out, whichever comes first. All I know is that the 80GB model will sell faster then the 60GB one at $499 even without Motorstorm just because its a larger HDD and people want more storage space hence why M$ released the elite and 120GB HDD.

 I think the reason that Sony's price drop was more effective than Microsoft's was because they let everybody know it was temporary. Anybody who was waiting for a price drop to buy knew that they would have to take advantage of this limited time offer before the stock was gone. Those who were waiting for their chance have now been satisfied, and I see no reason to expect that the 80GB will sell at the same rate as cheap 60GB models. Especially since the last time I checked, the price difference between a 60GB HD and a 80GB HD was closer to $10 than $100.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

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dgm6780 on 15 August 2007

Just because we are talking price cuts, the price cut the PS3 desperately needs is to bring back the 20GB with wireless internet for $399 or even $350. That would blow the XBox out of the water.



WiiRHardcore on 15 August 2007

I remember when you could buy a Dreamcast new for $50 at EB Games. I should have picked one up, that was a great system.



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Spectrumglr on 15 August 2007
dgm6780 said:
Just because we are talking price cuts, the price cut the PS3 desperately needs is to bring back the 20GB with wireless internet for $399 or even $350. That would blow the XBox out of the water.

 the problem is that probably by now a 20g HD costs to sony only 10$ less than a 80gb one....unless you have a huge warehouse full of 20gb HDs (like MS apparently has) you simply can't lower the price just using a 20gb HD instead of the 80 gigs.

I'm more willing to think that at present they can't afford a further price drop: as far as we know production costs are still high for Sony (and probably still exceed 499$)...and in addition you should take into account that in Europe they still haven't lowered the price: if 499$ was profitable i don't see why they shouldn't lower the price also in Europe... honestly i don't think that i'm too far from truth if i say that EU customers are payin' the US Price drop.



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jjseth on 15 August 2007
rockstarjerry981 said:
No i didn't take my funny pills today, but i did take my tired pills.

Sorry about that man, I will think harder next time.

Well, I had to take mine (funny pills) because I had a absolutely horrible day yesterday and if I had posted without them I probably would have been banned.   Sometimes the best way to cope with a long or horrible day is to just be silly.



 


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snowdog on 15 August 2007

There is a possibility that if sales for the PS3 don't improve during the Christmas holiday period that the PS3 could become the Gamecube of the next-gen consoles.

Square Enix have stated that after current PS3 projects are completed they're not going to start any new PS3 titles until sales make it worthwhile. Considering the higher dev, testing and publishing (in terms of both time and money) costs for the PS3 platform some publishers are redirecting resources from the PS3 to the Wii.

PS3 titles are being worked on at the moment but what'll happen to the software line-up for 2009-2011 if they don't shift more hardware units..?