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Forums - Sales - Roll Reversal

The Velour Fog said:
Look at the price difference. Then look at the sales difference. If anything, MS should be troubled by their inability to hold a huge lead over their main rival with such a high price difference.

Why would they? They seem pretty happy to me. Xbox 360 supporters haven't been forced to rejig the definition of failure this generation and they will enter the next generation stronger than they left the previous.



Tease.

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I think I need to reemphasize the point of this thread. Pricing is not relevant to this discussion. That is a theory unto itself, and even though it comprises today well over ninety percent of the debate. The other ten percent being new game will vastly shift the market. Prior to pricing being the flavor of the month. The debate revolved around brand loyalties. Which nobody espouses today. A year ago the debate hinged upon brand power.

Prior to Microsoft cutting the price of its console a lot of members adamantly denied that it would have any long lasting effect at all. Now with rumors buzzing about that the PS3 will see a price cut in the near future. It is a valid question will we return to the original theory that it is the brand recognition that would decide the console war in Europe between the High Definition twins.

I want to see if this logic is still present, and if so what impact the last ten months will have upon it. In other words I am thinking about the world beyond the massive price differential, or at least a world where the PS3s price isn't prohibitive. Everyone talks about a price reduction on the PS3, but nobody actually discusses the aftermath long term. For the PS3 that is extremely important, because you can't just say sales will go through the roof. They would indeed, but the PS3 is also known for spiking rather then developing a plateau.

Then again what happens if this theory is proven wrong once again. Where will the debate go if the PS3 gets a better competitive price, and still cannot win. What then is there another theory in the offing as to how Sony can recapture Europe where it is losing to both its competitors. This thread is about thinking about where the debate can go from where it is now. Not arguing the same points yet again for the thousandth time.

Yes we know the prices are different. Yes it has probably had a real impact. Will it dictate the rest of this generation. Nope absolutely not eventually the consoles will eventually be relatively close in the pricing area, and then what do we think will happen.



Dodece said:
I think I need to reemphasize the point of this thread. Pricing is not relevant to this discussion. That is a theory unto itself, and even though it comprises today well over ninety percent of the debate. The other ten percent being new game will vastly shift the market. Prior to pricing being the flavor of the month. The debate revolved around brand loyalties. Which nobody espouses today. A year ago the debate hinged upon brand power.

Prior to Microsoft cutting the price of its console a lot of members adamantly denied that it would have any long lasting effect at all. Now with rumors buzzing about that the PS3 will see a price cut in the near future. It is a valid question will we return to the original theory that it is the brand recognition that would decide the console war in Europe between the High Definition twins.

I want to see if this logic is still present, and if so what impact the last ten months will have upon it. In other words I am thinking about the world beyond the massive price differential, or at least a world where the PS3s price isn't prohibitive. Everyone talks about a price reduction on the PS3, but nobody actually discusses the aftermath long term. For the PS3 that is extremely important, because you can't just say sales will go through the roof. They would indeed, but the PS3 is also known for spiking rather then developing a plateau.

Then again what happens if this theory is proven wrong once again. Where will the debate go if the PS3 gets a better competitive price, and still cannot win. What then is there another theory in the offing as to how Sony can recapture Europe where it is losing to both its competitors. This thread is about thinking about where the debate can go from where it is now. Not arguing the same points yet again for the thousandth time.

Yes we know the prices are different. Yes it has probably had a real impact. Will it dictate the rest of this generation. Nope absolutely not eventually the consoles will eventually be relatively close in the pricing area, and then what do we think will happen.

How about this to try on for size. The Xbox 360 Live userbase and console userbase have expanded at the same rate. Therefore its safe to say that the majority of Xbox 360 users are in some way connected with each other. This is neither brand loyalty or brand power, its the network of connections which are between each and every one of us. Brand perhaps is the driving force when people don't have any particular afinity towards a console aside from just the brand. Perhaps price influences the 30-40% of people who buy Xbox 360s or maybe its a type of offlife social networking. In this context perhaps what a price cut and compelling software does is drive console sales through existing social network connections. Brand affinity may just reduce the initial resistance towards going for one brand over another.

 



Tease.

@Squilliam

Now those are some intriguing notions, and I surmise that most of us have some experience with the social networking aspect of console sales. That said you are highlighting two different ways consoles are sold to consumers. One through name recognition. The second would be through peer recommendation.

Effectively the PS3 and the 360 are selling through different phenomena. The 360 predominantly through peer to peer. While the PS3 is predominantly sold through name recognition. That isn't saying that either one doesn't have a little of the other. PS3 owners recommending it to friends to share the experience, or the 360 moving on some smaller degree of name recognition.

In this case it is a debate over which will garner the greater long term momentum once economic concerns are mostly swept aside. I would wager on peer given that we are three years into this generation and the initial influx is winding down. I would think peer recommendation would hold more water, because it only grows stronger over time. While last years new gadget slips from public consciousness.

Am I getting the gist of what you are saying, or am I missing the point entirely?



Hmm, I hear about how close the sales are despite the price differentiations. Perhaps its because the arcade is a bare-bones console set that pre-E3 '09 didn't outsell the Pro console? A better idea is comparing the $399 PS3 to the Pro 360, since I doubt a massive shift has occured from Pro consoles at arcade consoles without a reason. Don Mattrick himself is my source for this data.



GOTY Contestants this year: Dead Space 2, Dark Souls, Tales of Graces f. Everything else can suck it.

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FayeC said:
I don't think it was ever a strict Europe = Playstation Brand effect we were seeing. I lean more in favor of Europe = Brands that were associated with Playstation in the past. Brands which no small number of have seen (or will see) 360 releases.

Gran turismo 5 isn't leaving ;)



Maybe not Xoj, but im sure without the full support of names like Tekken, Final Fantasy, Resident Evil, Devil May Cry, Grand Theft Auto, Soul Caliber, and others the brand name isnt worth as it was last gen. These names were all synonymous with Playstation last gen. It even seems the Madden fanbase has moved platforms!
This goes without mentioning niche stuff like Magna Carta, Star Ocean and Katamari



FayeC said:
Maybe not Xoj, but im sure without the full support of names like Tekken, Final Fantasy, Resident Evil, Devil May Cry, Grand Theft Auto, Soul Caliber, and others the brand name isnt worth as it was last gen. These names were all synonymous with Playstation last gen. It even seems the Madden fanbase has moved platforms!
This goes without mentioning niche stuff like Magna Carta, Star Ocean and Katamari

Only Soul Caliber shouldn't be on that list....



Former something....

Dodece said:
@Squilliam

Now those are some intriguing notions, and I surmise that most of us have some experience with the social networking aspect of console sales. That said you are highlighting two different ways consoles are sold to consumers. One through name recognition. The second would be through peer recommendation.

Effectively the PS3 and the 360 are selling through different phenomena. The 360 predominantly through peer to peer. While the PS3 is predominantly sold through name recognition. That isn't saying that either one doesn't have a little of the other. PS3 owners recommending it to friends to share the experience, or the 360 moving on some smaller degree of name recognition.

In this case it is a debate over which will garner the greater long term momentum once economic concerns are mostly swept aside. I would wager on peer given that we are three years into this generation and the initial influx is winding down. I would think peer recommendation would hold more water, because it only grows stronger over time. While last years new gadget slips from public consciousness.

Am I getting the gist of what you are saying, or am I missing the point entirely?

It certainly explains the performance of the Xbox 360 in the U.S. and the U.K. where the 360 has a considerable advantage in terms of userbase. What I wonder is if the PS3 will hit a wall like the Gamecube did or if it can establish more of a presence in these markets.

Im not saying that the PS3 doesn't also benefit from these effects, its just that the Xbox 360 benefits more because overall the Xbox 360 has a 50% advantage over the PS3 in terms of market share in the west.

But yeah, you're getting what im saying.



Tease.

I would prefer to comment only on North America. I think I am more comfortable with those trends, because I have ran the numbers there more consistently. I do believe that the PS3 has hit a wall in North America. The console has languished within the same market share for almost a year. Which is around seventeen percent. More to the point it is languishing terrible close to two sales points which in themselves are walls. I have alluded to this before.

At just south of fifteen percent a console has basically become marginalized in many retailers that market share doesn't warrant a full door. Let alone prime placement, promotions, and obviously the title selection is correspondingly poor. At below ten percent the console moves beyond marginal, and enters the realm of dead console. These two are distinctly intertwined. Being that once a console is marginalized there is no way out, and it basically drives console sales further down.

The whole point of this is that the PS3 has slid perilously close to fifteen percent in the past, and I do believe that the console has exhausted most of its early adopter, and most of its price point potential. Meaning that the console which is already on shaky ground has things stacking up against it. However the PS3 has proven to be a real fighter. Somehow it manages to stay just out of trouble. I just don't know how much longer the luck can hold out for Sony.

The PS3 has hit a wall. I see no way for it to capture more market. The only question for me is whether it can maintain its market share, and remain a viable platform in North America. Anyway it is hard to imagine a console that is metaphorically at deaths door finding a way to any kind of real recovery.