nightsurge said: Oh and one more thing, I would argue that decreasing the price of the 360, especially in markets where it already exceeds the PS3 by a good margin, will increase the perceived value, not decrease it. The average Joe will go to a store, see 2 consoles with nearly all the same games. Both consoles he finds out can play HD and one is 50% cheaper. To that person the perceived value is going to be greater on the 360 because it can do nearly every function for half the price! Plus add on the unique features of Netflix streaming, Live with its unique features, achievements, and the greater chance that you will be able to play with your friends or that more of your friends will own this console, and the value goes up even more. Sure you can argue that "they will need to pay for LIVE and to buy a wireless adapter so it isn't cheaper", but I would then counter argue that since only about 18 million Xbox 360 users even use the Silver/Gold level service, it is obviously not an absolute selling point (12 million 360 users not online). Also, to add on to that, wireless is not necessary, and most situations will not require it. But, in the event the average Joe pays for Xbox Live for full price, he still will get the occasional free XBLA game, and the chance to win prizes and points from all the MS promotions or Xbox Live PrimeTime.

Who the hell besides PS3 people play on wireless?....I swear no one I know play unwired....

Whoever says MS doesn't have room for price cut should smack their own heads. PS2 is $99, I am sure 360 will be too at some point. They can just leave the price at $200 and add 500GB hard drive, free HDMI cable or free wireless card. It's stupid to even think about it. How about drop PS3 to $50 or free? Sure I'll take it.

The 360 have games inculded with them and in the past it was rare games were included. The 360 is now making a profit and they are including games with each console. They could probably drop the price $50 and not include a game.

Zizzla_Rachet said: nightsurge said: Oh and one more thing, I would argue that decreasing the price of the 360, especially in markets where it already exceeds the PS3 by a good margin, will increase the perceived value, not decrease it. The average Joe will go to a store, see 2 consoles with nearly all the same games. Both consoles he finds out can play HD and one is 50% cheaper. To that person the perceived value is going to be greater on the 360 because it can do nearly every function for half the price! Plus add on the unique features of Netflix streaming, Live with its unique features, achievements, and the greater chance that you will be able to play with your friends or that more of your friends will own this console, and the value goes up even more. Sure you can argue that "they will need to pay for LIVE and to buy a wireless adapter so it isn't cheaper", but I would then counter argue that since only about 18 million Xbox 360 users even use the Silver/Gold level service, it is obviously not an absolute selling point (12 million 360 users not online). Also, to add on to that, wireless is not necessary, and most situations will not require it. But, in the event the average Joe pays for Xbox Live for full price, he still will get the occasional free XBLA game, and the chance to win prizes and points from all the MS promotions or Xbox Live PrimeTime. Who the hell besides PS3 people play on wireless?....I swear no one I know play unwired....

Lol, even most of my friends who have PS3's use ethernet.  In fact I bet almost every PS3 owner will use ethernet unless their PS3 is not near the router/modem.  Since most consoles are located at the biggest TV in the house (living room), they will be right beside the cable hookups and can just use a short ethernet to get the job done

Oh and did I mention that the Pro/Elite 360 supports HD out of the box with component cables, but the PS3 does not and requires an HDMI cable purchase (which if you buy at the same time as your console will be another $30-50).

nightsurge said: Zizzla_Rachet said: Shadowblind said: The_God_of_War said: I've never actually seen anyone say that but the 360 already costs $200, it can't really go significantly lower. Whereas the PS3 costs $400, there's still a lot of room for the price to go down. Not quite. The arcade is as basic a console as they come for game consoles these days; directly dropping the arcade altogether and moving a higher model to a lower price would stimulate sales alot.  but will PS3 fan boys understand this logic? Of course not.  To them only the $200 model exists.  They don't realize that the $300 model is actually the highest selling model.  The Arcade was the most popular over the holidays (for obvious reasons), but outside of that, it has always been the Pro/Premium as the majority seller.

And for some reason they think it's the only the arcade selling....While at my local gamestop's it's the only one always in stock...and pro's are always low..yes I I'm a 360 fanboy I ask...

nightsurge said: Zizzla_Rachet said: nightsurge said: Oh and one more thing, I would argue that decreasing the price of the 360, especially in markets where it already exceeds the PS3 by a good margin, will increase the perceived value, not decrease it. The average Joe will go to a store, see 2 consoles with nearly all the same games. Both consoles he finds out can play HD and one is 50% cheaper. To that person the perceived value is going to be greater on the 360 because it can do nearly every function for half the price! Plus add on the unique features of Netflix streaming, Live with its unique features, achievements, and the greater chance that you will be able to play with your friends or that more of your friends will own this console, and the value goes up even more. Sure you can argue that "they will need to pay for LIVE and to buy a wireless adapter so it isn't cheaper", but I would then counter argue that since only about 18 million Xbox 360 users even use the Silver/Gold level service, it is obviously not an absolute selling point (12 million 360 users not online). Also, to add on to that, wireless is not necessary, and most situations will not require it. But, in the event the average Joe pays for Xbox Live for full price, he still will get the occasional free XBLA game, and the chance to win prizes and points from all the MS promotions or Xbox Live PrimeTime. Who the hell besides PS3 people play on wireless?....I swear no one I know play unwired.... Lol, even most of my friends who have PS3's use ethernet.  In fact I bet almost every PS3 owner will use ethernet unless their PS3 is not near the router/modem.  Since most consoles are located at the biggest TV in the house (living room), they will be right beside the cable hookups and can just use a short ethernet to get the job done Oh and did I mention that the Pro/Elite 360 supports HD out of the box with component cables, but the PS3 does not and requires an HDMI cable purchase (which if you buy at the same time as your console will be another $30-50).

Don't forget the 60 dollar headset

There are so many fallacies related to any argument surrounding the Xbox 360s sales its so insane, but i'll wade into a few of them.

1. Theres no such thing as a mass market price. Its all related to supply costs and demand, but theres an ideal price range for different consoles where price cuts yield the greatest response in terms of increasing total unit sales. As the recession deepens this price point is lower as the overall demand for consoles drops as we have seen overall console sales start to decline year over year. Furthermore during a recession people become more sensitive to price and we have seen the average sale price of the Xbox 360 begin to decline during the year in America. So from this, a price cut will yield good results because the ideal price of $199 for the Arcade last year isn't so ideal anymore, however $150 or $179 might be.

2. The reason why the Xbox 360 3 SKU system of Arcade at $199, Premium at $299 and Elite at $399 is price point and feature discrimination towards consumers. There are people who will pay no more than $199 for a console or don't need a HDD and they would be fine with the Arcade. On the other extreme there are people who are willing and able to pay $399 for an Elite and if this SKU wasn't available Microsoft would miss out on the extra margin and revenue on these units. The price difference between the SKUs are not fixed and Microsoft can adjust the features and prices to suit different areas of the market. For example they have the option of selling the base unit for $179 and the Premium for $250 or they could offer Blu Ray in the Elite and position the console at the higher price point of $350 against the PS3. They have more open options, which makes it difficult to predict how they will respond to the recession and Sony's actions this year.

3. The Xbox 360s price cuts are nowhere near as quick as the expected PS3 cut. The PS3 has only been out for 2 years in the E.U and its shed 33% of its cost there and it will hit 50% in less than 3 years if the price rumours are true. This is far faster than any price cut we could see from Microsoft this year and if there is a price cut perception effect existing, it will hurt Sony far more than Microsoft as they are the bigger price cutters.

The 360 is already very cheap as it is, I didn't know lowering the price any more was even being considered.

Thechalkblock said: The 360 is already very cheap as it is, I didn't know lowering the price any more was even being considered.

Elite model for $200

MS makes money on each console they sell.
and they make money from games and xbox live.
they can afford a price cut now. when sony drops the price of the PS3 then
ms will drop the 360. what i see MS doing is doing away with the arcde model
and haveing the 60 gig pro for 199 and the elite at 299