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Forums - Gaming - Analysis: X360 underachieving and why it won't get a price-cut in 2009

gebx on 05 July 2009

The funny thing about this thread is that I don't think MS will have a price cut in 2009.

I believe they'll just upgrade all their consoles in late fall, and that they'll keep the current price structure

Arcade - Internal Flash Memory (maybe up to 1 gig?)
Pro - 120gig
Elite - 250gig



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The on 05 July 2009

@gebx, I think so too. Seriously, their hands are tied price-wise. And I really do think they must push the value message. Games, bundles, better hardware, I don't know. The key is not cutting the price further, honestly I believe they "can't " and would be crazy if they do, they must move hardware based on what it offers. I honestly think asking less than $200 for a Xbox 360 in 2009 is ridiculous. If someone isn't interested in buying a 360 at this stage is not because of price, Microsoft must show people WHY the price is right.



gebx on 05 July 2009
The said:
ZenfoldorVGI said:
The said:

@zen No shit. But it (the price-cut) has underachieved nonetheless.

How did it underachieve? It boosted sales greatly in the long term, and put major pressure on the PS3 for a price cut. It has been nothing but a success. Did it not have enough win for you?


Zen, my boy. What if I were to compare the early 2007 PS3 sales to the early-mid 2008 PS3 sales? Would that be so surprising? Of course it shows the PS3 starting doing a lot better, as it would've died an horrible early death if Sony hadn't found a way to reduce costs and impale themselves while cutting the price so early in the circle. But look at that difference between the dying PS3 of early 2007 and what it was selling when it got the cut. It was "less expensive" alright, but still expensive, not mass-friendly priced, and still considerably pricier than the competition! We're talking about mass market price here, $200. If you look at the 360 price cut as a LIFE-SAVING measure, then yeah, it was THE ONLY WAY OUT, and it paid off. I've never denied that. That was THE move. Still, and I'm sorry for my stubborness, I think I expect a lot more from a mass-market priced product. I would expect it should be selling around 180K every week, not its current level which is just above a product which is by no means mass-market or enjoys so strong market penetration. Take Xbox Live Gold for example, if Gold is indeed growing every month you would think more new people would prefer to buy a 360 so they'd be able to play with their friends and relatives. Just an example, I think the value of a $200 or $300 X360 should be percieved a lot higher than it is!

 

 

A gaming console sort of loses all value in a recession...

I don't understand why you keep ignoring the market conditions



Proud Member of GAIBoWS (Gamers Against Irrational Bans of Weezy & Squilliam)

                   

heruamon on 05 July 2009

Well, I just wasted my time reading this OP...but it was great comedy though.



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

Legend11 on 05 July 2009
The said:
@gebx, I think so too. Seriously, their hands are tied price-wise. And I really do think they must push the value message. Games, bundles, better hardware, I don't know. The key is not cutting the price further, honestly I believe they "can't " and would be crazy if they do, they must move hardware based on what it offers. I honestly think asking less than $200 for a Xbox 360 in 2009 is ridiculous. If someone isn't interested in buying a 360 at this stage is not because of price, Microsoft must show people WHY the price is right.


Sony is predicting a second straight year of losses (they expect to lose at least $1.16 Billion for the year ending March 2010*) and it's Microsoft hands that are tied?



*Source: http://www.businessweek.com/globalbiz/content/may2009/gb20090514_650368.htm





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The on 05 July 2009

Look at the WW sales for the PS3 in the first half of 2007....

VGChartz Hardware data for the period 31st Dec 2006 to 23rd Jun 2007:

Console PS3
Total 2,441,854


Same period, in 2008:

VGChartz Hardware data for the period 30th Dec 2007 to 21st Jun 2008:

Console PS3
Total 4,713,050


And Note: those are Worldwide numbers, and if the PS3 managed to that much in early 2007 was because of the EUROPEAN LAUNCH (you know launches sell many consoles).

You could extend the period for this comparison to October 2007


VGChartz Hardware data for the period 31st Dec 2006 to 06th Oct 2007:

Console PS3
Total 3,764,447

And the PS3 still didn't sell what it did a year later in 6 months (1 million difference)....


Ta-daaaa, that's price cut for ya!



The on 05 July 2009

^Is the 360 selling over a million YOY?



The on 05 July 2009

The PS3 gets cut from $600/$500 and a year later sales are over WAY OVER ONE MILLION and STARTS TO OUSELL THE 360. WOW, $400, $500! that's so cheap right!! ... Microsoft cuts the price to $200 and $300 and people are hesitating? 400K over the PS3 this year? 0.5 million YOY with the so-called better library, better online, etc etc?? please, I'm getting tired of own all of you.



The on 05 July 2009

@kowenicki I will kneel before you if the 360 sells 12 million this year.



The on 05 July 2009

12 million baby, that's exactly around 1 million units up YOY worldwide. Nope! won't make it! selling at $200, $300, or whatever!