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

Forums - Microsoft - Microsoft's response to a PS3 price cut?

Groucho said:

The 360 Arcade will not get cheaper. The Pro might.

They may choose to add "value" to the Arcade, but they will definately not make it cheaper. For one thing, they're most likely losing money with each arcade sold. If you think they can make a processor like the Xenon, a GPU like the Xenos, and 512MB GDDR3 RAM, with DVD drive, built in networking, AND a nice controller like the 360s for less than $200 (heck the retailers probably want a cut too, and you have to package it, ship it, etc.), you should go start up a "laptop for every child" program, and do some great things for the world. Microsoft's Games Division net profits dropped in the hundreds of millions of dollars this Holiday season, and they were wildly successful this year, compared to the last. I think the reason is obvious.

Also, if the 360 got as cheap as a PSP, or too close to the venerable PS2, people would start to wonder "Why? Why is it so cheap compared to the Wii and PS3?"   "Microsoft is generous" wouldn't be the first thing to come to the buyer's mind, I guarantee.

No drop for the 360 anytime soon (which they have stated on several occasions). They will add "value", or drop the price on the models that actually make money (Pro/Elite).  Sony and Nintendo still have the pricedrop card in their respective hands... MS played it last year, and now they've got to fall back on less powerful plays.

Losing money on the Arcade is not a big problem, if they sell enough Premiums and Elites to get it back. Since 360's hard drive is proprietary, Microsoft can assure a minimum level of revenue as they control the standalone hard drive prices too.

 



My Mario Kart Wii friend code: 2707-1866-0957

Around the Network
halogamer1989 said:
So how about it Slimebeast? It makes good biz sense and many have suggested it online.

This is a good option:

1. Platinum: You pay $50 per year. You get online play, 2,000 MS Points yearly (and you can let them roll over and they'll accumulate) and free demos that have additional levels AND a browser interface. You'd also get a 10gb online storage bin.

2. Gold: You pay $25 per year. You get online, timed demos and everything you get with LIVE now. You get a 1gb online storage bin.

3. Silver: Free. You get online, limited demos that are delayed a week or two. Ad-supported too, but you get bombarded with tons of offers.

4. Bronze: Free. You get limited online - just twice a month. Ad-supported too but not as bad as with Silver.

 



Groucho said:

The 360 Arcade will not get cheaper. The Pro might.

They may choose to add "value" to the Arcade, but they will definately not make it cheaper. For one thing, they're most likely losing money with each arcade sold. If you think they can make a processor like the Xenon, a GPU like the Xenos, and 512MB GDDR3 RAM, with DVD drive, built in networking, AND a nice controller like the 360s for less than $200 (heck the retailers probably want a cut too, and you have to package it, ship it, etc.), you should go start up a "laptop for every child" program, and do some great things for the world. Microsoft's Games Division net profits dropped in the hundreds of millions of dollars this Holiday season, and they were wildly successful this year, compared to the last. I think the reason is obvious.

Also, if the 360 got as cheap as a PSP, or too close to the venerable PS2, people would start to wonder "Why? Why is it so cheap compared to the Wii and PS3?" "Microsoft is generous" wouldn't be the first thing to come to the buyer's mind, I guarantee.

No drop for the 360 anytime soon (which they have stated on several occasions). They will add "value", or drop the price on the models that actually make money (Pro/Elite). Sony and Nintendo still have the pricedrop card in their respective hands... MS played it last year, and now they've got to fall back on less powerful plays.

Sony pays Nvidia...

Sony pays IBM

Microsoft pays noone.

See the difference between owning I.P and licensing it?

@Bold, what do you think consumers must have thought after Sony a third off the top a little less than a year after launch? Well they obviously didn't decide against buying the PS3.

The real question they will ask is "Why is the PS3 so expensive" Not "Why is the Xbox 360 so cheap".

 

 



Tease.

I don't think MS will cut prices until one of two things happen:

The PS3 shaves the 360 lead to 5M
The PS3 is consistently selling the 360 by 3 to 1 WW

If the figures are correct, MS doesn't need to cut the price until the holidays, if then. I think they could ride the lead to like 3M. MS is in the driver's seat. They don't need to counter the Sony price cut. Not this time ...



I really dont see why the 360 needs to be even cheaper. In Australia the middle 360 (60 gig) is like $300 cheaper then a ps3 and im pretty sure the next model up is $200 cheaper, the arcade its like $450 cheaper. I bought my dad the arcade the other day puerly because its soooooooooo cheap! and for casual gamers the arcade 360 is 110% perfect! and $450 cheaper then a ps3!

The ps3 would need to drop $200 to be on a competing level with the 360 in Aus and I doubt it will get cut that much, considering the looses Sony has incured. And even though they have cut production costs if they drop the price they will be right back where they started, making a huge loss.

Sony may not be caring to strongly about Ms current win in the HD gaming market and they may be looking puerly at their own sales. If they continue to make their target at the current price there is no need for the company to drop the price. Just because we see everything as a competition doesnt mean the business world has to.

A price drop may put sony in a worse financial position then if they maintain the price with current sales. Financial position should be sonys number 1 priority right now, not winning a console war.



If at first you don't succeed, you fail

Around the Network
Zomb1337 said:
Microsoft should make a $50 price cut in late 2009 across all 3 consoles.

That's what they will probably do if Sony drops their price. I don't see Sony dropping their price until the E3 or in the Fall. If they do it will only be $50

__________________________________________

'gaming till I'm gone'

How about some FREE Xbox Live just generally for all :) wooo that would definitely be a dream come true lol...but you guys have some great ideas...we need some of these mentalities working up in the gaming business for sure



$50 drop across all skus in september. case closed. make bundles.

Just like 08.



Does everyone still think Sony will price drop despite those losses? Granted they need to get it going but maybe a $50 cut and some downward pressure on the prices for movies? The sooner Blu-Ray takes off the better for them.

MS posted the first full-year profit in their E div. last year. Is the middle of the worst recession since the 30's the time to run in the red? I'll be surprised if the arcade gets a drop before late 2010. I'd love a break on a 60G HD, a controller or the wireless add-on. That would move product if not consoles. Maybe bundle some online games and a headset with the pro? Should be interesting.



$19.99 for 1 yr Xbox LIVE would be very attractive to even casuals.



PREDICTIONS:
(Predicted on 5/31/11) END of 2011 Sales - Xbox 360 = 62M;  PS3 = 59M;  Wii = 97M