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Forums - Microsoft - How long will it be until Microsoft counters the PS3 price cut?

BHR-3 said:
sguy78 said:
BHR-3 said:
i see alot of people taking bout 360 being cheaper than the ps3 in Eu but it always was and will be like that 360 had 2 EU price cuts in 2008 while the ps3 had none b4 08 they where even

as for prices
na
elite 300$
arcade 200$

eu
elite £169 €239
arcade £129 €179

jp
elite 29,800yen,
arcade 19,800yen

there going to need to drop the arcade if they want to compete with sony

I think the Xbox 360 Elite needs to get to a $250.00 price point.

not really the elites and pros werent the most sold last holidays the arcade was the elite can stay at 300$ and still compete with sony if there arcade is half the price of the slim

but i doubt it since in 07 the ps3 outsold the 360 wen it was priced at 400 and the core was 280 thats 120 prie diff

if the arcade goes to 150$ then maybe the 360 and ps3 sales will be neck and neck this holidays ill be suprised if the elite goes from 400 to 250 thats crazy

I'm just saying that Microsoft has a habit of trying to one up Sony. Having the Xbox 360 Elite at the same price as the PS3 would not be doing that.



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sguy78 said:
BHR-3 said:
sguy78 said:
BHR-3 said:
i see alot of people taking bout 360 being cheaper than the ps3 in Eu but it always was and will be like that 360 had 2 EU price cuts in 2008 while the ps3 had none b4 08 they where even

as for prices
na
elite 300$
arcade 200$

eu
elite £169 €239
arcade £129 €179

jp
elite 29,800yen,
arcade 19,800yen

there going to need to drop the arcade if they want to compete with sony

I think the Xbox 360 Elite needs to get to a $250.00 price point.

not really the elites and pros werent the most sold last holidays the arcade was the elite can stay at 300$ and still compete with sony if there arcade is half the price of the slim

but i doubt it since in 07 the ps3 outsold the 360 wen it was priced at 400 and the core was 280 thats 120 prie diff

if the arcade goes to 150$ then maybe the 360 and ps3 sales will be neck and neck this holidays ill be suprised if the elite goes from 400 to 250 thats crazy

I'm just saying that Microsoft has a habit of trying to one up Sony. Having the Xbox 360 Elite at the same price as the PS3 would not be doing that.

they might just 1 up them this year with HDD size i have a feeling the elite will get a bigger HDD than the slim but be the same price

it would be easier to cut the arcade by 50$ 2 150$ rather then cut the elite by 150$ 2 250$



                                                             

                                                                      Play Me

BHR-3 said:
sguy78 said:
BHR-3 said:
sguy78 said:
BHR-3 said:
i see alot of people taking bout 360 being cheaper than the ps3 in Eu but it always was and will be like that 360 had 2 EU price cuts in 2008 while the ps3 had none b4 08 they where even

as for prices
na
elite 300$
arcade 200$

eu
elite £169 €239
arcade £129 €179

jp
elite 29,800yen,
arcade 19,800yen

there going to need to drop the arcade if they want to compete with sony

I think the Xbox 360 Elite needs to get to a $250.00 price point.

not really the elites and pros werent the most sold last holidays the arcade was the elite can stay at 300$ and still compete with sony if there arcade is half the price of the slim

but i doubt it since in 07 the ps3 outsold the 360 wen it was priced at 400 and the core was 280 thats 120 prie diff

if the arcade goes to 150$ then maybe the 360 and ps3 sales will be neck and neck this holidays ill be suprised if the elite goes from 400 to 250 thats crazy

I'm just saying that Microsoft has a habit of trying to one up Sony. Having the Xbox 360 Elite at the same price as the PS3 would not be doing that.

they might just 1 up them this year with HDD size i have a feeling the elite will get a bigger HDD than the slim but be the same price

it would be easier to cut the arcade by 50$ 2 150$ rather then cut the elite by 150$ 2 250$

If Microsoft does that, it could help.



yes. Microsoft might or might not change the price. i don't think they will though.



NINTENDO

nintendo forever . . .

BHR-3 said:
sguy78 said:
BHR-3 said:
i see alot of people taking bout 360 being cheaper than the ps3 in Eu but it always was and will be like that 360 had 2 EU price cuts in 2008 while the ps3 had none b4 08 they where even

as for prices
na
elite 300$
arcade 200$

eu
elite £169 €239
arcade £129 €179

jp
elite 29,800yen,
arcade 19,800yen

there going to need to drop the arcade if they want to compete with sony

I think the Xbox 360 Elite needs to get to a $250.00 price point.

not really the elites and pros werent the most sold last holidays the arcade was the elite can stay at 300$ and still compete with sony if there arcade is half the price of the slim

but i doubt it since in 07 the ps3 outsold the 360 wen it was priced at 400 and the core was 280 thats 120 prie diff

if the arcade goes to 150$ then maybe the 360 and ps3 sales will be neck and neck this holidays ill be suprised if the elite goes from 400 to 250 thats crazy

But Holiday 07 was directly following the PS3 price cuts and at that point it was like literally the cheapest and best Blu-Ray player so a lot of people got it as mostly for that during that time period.

As far as the Elite going to $249 or lower.  The Pro was profitable by $75 when it was $400.  It was then revised twice and the chips were shrunk so profits increased.  They likely still made a slight profit of $25-50 even after they cut the Pro to $300.  With another revision in the works, it would be highly probable that MS will have a slim coming at some point or further price reductions are a certainty.  Now, the only difference between the Pro and Elite was the larger HDD and an included HDMI cable.  MS has recently removed the included HDMI cable and even dropped the component cables so now all Elites are identical to Arcades except for the hard drive and the profit margins are higher.  A Pro with a 60GB HDD and an Elite with a 120GB HDD cost identical to produce.  When it comes to HDD you pay for the platter, not how much space is on it.

So since the Pro came with component cables and still was at $300, and the Elite now has just composite cables, and cost the same as the Pro to make, it is highly probably that MS could easily afford another $50 price cut and be breaking even or only taking a small loss.  Heck, even a $100 cut to $199 for the Elite would be "possible" and they'd be taking about a $50-75 loss per console sold at that point, but that is something they definitely do not want to do.

The real secret to MS's pricing plan is their plan for Natal.  When Natal comes out, they will bundle it with every 360 and maintaint the price points of $200/300 or maybe drop by $50 at that point.  This way they absorb the costs and take no loss on hardware.  On the other hand, with Sony just now breaking even at $300 on the Slim, and wanting to get their own motion tech out there, they will have to either raise the price or take another huge loss by bundling it at the current price.  Sony's motion will likely cost double Natal because it requires the PS Eye AND 2 of those wands at minimum, while Natal is an all in one box solution.  Then if you want 4 players co-op you have to buy 6 more wands to get the full experience.  $20 a pop and you are seeing high costs for the PS3.

Next fall is when MS will strike with it's price maneuvers.



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elite needs a price cut... like 230$-250$.
arcade 150-170$



nightsurge said:
BHR-3 said:
sguy78 said:
BHR-3 said:
i see alot of people taking bout 360 being cheaper than the ps3 in Eu but it always was and will be like that 360 had 2 EU price cuts in 2008 while the ps3 had none b4 08 they where even

as for prices
na
elite 300$
arcade 200$

eu
elite £169 €239
arcade £129 €179

jp
elite 29,800yen,
arcade 19,800yen

there going to need to drop the arcade if they want to compete with sony

I think the Xbox 360 Elite needs to get to a $250.00 price point.

not really the elites and pros werent the most sold last holidays the arcade was the elite can stay at 300$ and still compete with sony if there arcade is half the price of the slim

but i doubt it since in 07 the ps3 outsold the 360 wen it was priced at 400 and the core was 280 thats 120 prie diff

if the arcade goes to 150$ then maybe the 360 and ps3 sales will be neck and neck this holidays ill be suprised if the elite goes from 400 to 250 thats crazy

But Holiday 07 was directly following the PS3 price cuts and at that point it was like literally the cheapest and best Blu-Ray player so a lot of people got it as mostly for that during that time period.

As far as the Elite going to $249 or lower.  The Pro was profitable by $75 when it was $400.  It was then revised twice and the chips were shrunk so profits increased.  They likely still made a slight profit of $25-50 even after they cut the Pro to $300.  With another revision in the works, it would be highly probable that MS will have a slim coming at some point or further price reductions are a certainty.  Now, the only difference between the Pro and Elite was the larger HDD and an included HDMI cable.  MS has recently removed the included HDMI cable and even dropped the component cables so now all Elites are identical to Arcades except for the hard drive and the profit margins are higher.  A Pro with a 60GB HDD and an Elite with a 120GB HDD cost identical to produce.  When it comes to HDD you pay for the platter, not how much space is on it.

So since the Pro came with component cables and still was at $300, and the Elite now has just composite cables, and cost the same as the Pro to make, it is highly probably that MS could easily afford another $50 price cut and be breaking even or only taking a small loss.  Heck, even a $100 cut to $199 for the Elite would be "possible" and they'd be taking about a $50-75 loss per console sold at that point, but that is something they definitely do not want to do.

The real secret to MS's pricing plan is their plan for Natal.  When Natal comes out, they will bundle it with every 360 and maintaint the price points of $200/300 or maybe drop by $50 at that point.  This way they absorb the costs and take no loss on hardware.  On the other hand, with Sony just now breaking even at $300 on the Slim, and wanting to get their own motion tech out there, they will have to either raise the price or take another huge loss by bundling it at the current price.  Sony's motion will likely cost double Natal because it requires the PS Eye AND 2 of those wands at minimum, while Natal is an all in one box solution.  Then if you want 4 players co-op you have to buy 6 more wands to get the full experience.  $20 a pop and you are seeing high costs for the PS3.

Next fall is when MS will strike with it's price maneuvers.

ur right about that it looks like ps3 gets the odd years and 360 the even

thats wat i used to create this thread  open me although the thread may sound funny it wont be funny at the end of this year wen im right about it



                                                             

                                                                      Play Me

nightsurge said:
BHR-3 said:
sguy78 said:
BHR-3 said:
i see alot of people taking bout 360 being cheaper than the ps3 in Eu but it always was and will be like that 360 had 2 EU price cuts in 2008 while the ps3 had none b4 08 they where even

as for prices
na
elite 300$
arcade 200$

eu
elite £169 €239
arcade £129 €179

jp
elite 29,800yen,
arcade 19,800yen

there going to need to drop the arcade if they want to compete with sony

I think the Xbox 360 Elite needs to get to a $250.00 price point.

not really the elites and pros werent the most sold last holidays the arcade was the elite can stay at 300$ and still compete with sony if there arcade is half the price of the slim

but i doubt it since in 07 the ps3 outsold the 360 wen it was priced at 400 and the core was 280 thats 120 prie diff

if the arcade goes to 150$ then maybe the 360 and ps3 sales will be neck and neck this holidays ill be suprised if the elite goes from 400 to 250 thats crazy

But Holiday 07 was directly following the PS3 price cuts and at that point it was like literally the cheapest and best Blu-Ray player so a lot of people got it as mostly for that during that time period.

snip

Next fall is when MS will strike with it's price maneuvers.

The PS3 software shipments really don't support the bolded statement in any way.  

Also, I don't think Microsoft will give Natal away.  They have too much money invested in it.



Thanks for the input, Jeff.

 

 

dbot said:
nightsurge said:
BHR-3 said:
sguy78 said:
BHR-3 said:
i see alot of people taking bout 360 being cheaper than the ps3 in Eu but it always was and will be like that 360 had 2 EU price cuts in 2008 while the ps3 had none b4 08 they where even

as for prices
na
elite 300$
arcade 200$

eu
elite £169 €239
arcade £129 €179

jp
elite 29,800yen,
arcade 19,800yen

there going to need to drop the arcade if they want to compete with sony

I think the Xbox 360 Elite needs to get to a $250.00 price point.

not really the elites and pros werent the most sold last holidays the arcade was the elite can stay at 300$ and still compete with sony if there arcade is half the price of the slim

but i doubt it since in 07 the ps3 outsold the 360 wen it was priced at 400 and the core was 280 thats 120 prie diff

if the arcade goes to 150$ then maybe the 360 and ps3 sales will be neck and neck this holidays ill be suprised if the elite goes from 400 to 250 thats crazy

But Holiday 07 was directly following the PS3 price cuts and at that point it was like literally the cheapest and best Blu-Ray player so a lot of people got it as mostly for that during that time period.

snip

Next fall is when MS will strike with it's price maneuvers.

The PS3 software shipments really don't support the bolded statement in any way.  

Also, I don't think Microsoft will give Natal away.  They have too much money invested in it.

Actually the software shipments do pretty much support it.  That's why it maintains such a lower Tie ratio despite good software sales.

And Natal isn't being given away for free, per say.  It's being included with every 360 instead of having a price drop.  And then anyone else will have to buy it for however much it will cost.



Well, considering that M$ had previously stated they will match anything Sony does, and they expected this to happen in Spring '09...hmmm I think it can be expected that PS3 Slim is going to get a rude awakening on launch...not to mention what Nintendo is going to do with the Wii...a $50 drop for that would chop off the slim in it's best feeding pool...Japan.



"...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