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Forums - Microsoft - No significant sales boost despite 360 price cuts, says EEDAR

sully1311 on 27 August 2009

Analyst firm EEDAR has said that the price cuts on the Xbox 360 will not give any significant boost to sales of Microsoft's console this year.

The Xbox 360 Elite dropped in price to USD 299 / EUR 249 / GBP 199 today, and brings the system in-line with the recently lowered PlayStation 3 price point.

"Forecasting for the remainder of the year, EEDAR does not expect the Xbox 360 to see a significant sales lift over last year’s performance despite its price drop for the Xbox 360 Elite system," wrote the company.

"In fact, the consistency of sales would indicate that the USD 299 price point is a sweet spot for the next-generation home consoles."

Jesse Divnich, director of analyst service at EEDAR, said that Microsoft is likely to further lower the price of the Elite console to USD 249 in the next 12 months, in time to offer a USD 299 Xbox complete with the Project Natal technology.

"Over the next year Microsoft will most likely reposition the Xbox 360 Elite model closer to the USD 249 price point to both pressure Sony and attract potential Nintendo Wii consumers.

"From a strategic standpoint this would then allow Microsoft to introduce the new Natal model in 2010/2011 at the USD 299 price point and still have an option for consumers cheaper than the Sony PlayStation 3," he wrote.

http://www.gamesindustry.biz/articles/no-significant-sales-boost-despite-360-price-cuts-says-eedar

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I say wait a few months and then we will see. If MS market it right, it can increase their sales



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sega4life on 27 August 2009

 

I don't think there will be a huge increase, but will still stay steady until the holidays..

Don't know why MS didn't add WiFi adaptors to the boxes...



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AkibaFan on 27 August 2009

it will result in huge sales & destroy ps3 momentum



badgenome on 27 August 2009
sega4life said:

 

I don't think there will be a huge increase, but will still stay steady until the holidays..

Don't know why MS didn't add WiFi adaptors to the boxes...

Adding value is a crutch.



Seece on 27 August 2009

It's not meant to boost sales, just keep them sustained. If they can do what they did last holiday season then they're doing great.



 

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FKNetwork on 27 August 2009

^That



Slimebeast on 27 August 2009
Seece said:
It's not meant to boost sales, just keep them sustained. If they can do what they did last holiday season then they're doing great.

Inpossible. Holiday will be minus 1 million compared last year. Maybe more.

They shuld have droped $179 and $249 in my opinion. But sadly it seems it's harder to make the X360 profitable than the PS3.

I mean, in four years X360 only has dropped $100 (from $299 to $199 and $399 to $299), while PS3 in only three years has dropped $300 - from $599 to $299.



deathgod33 on 27 August 2009
sega4life said:

 

I don't think there will be a huge increase, but will still stay steady until the holidays..

Don't know why MS didn't add WiFi adaptors to the boxes...

believe it or not, not everyone needs it.

but im sure it only costs like 30 bucks to make so they should add in it just to match the ps3 having wifi already.



 

 

 

 

Masakari on 27 August 2009

I don't really see the fuss about it. WiFi may be useful here and there, but no self-respecting gamer uses WiFi for online play, it's unreliable and an invitation to lag.



Seece on 27 August 2009
Slimebeast said:
Seece said:
It's not meant to boost sales, just keep them sustained. If they can do what they did last holiday season then they're doing great.

Inpossible. Holiday will be minus 1 million compared last year. Maybe more.

They shuld have droped $179 and $249 in my opinion. But sadly it seems it's harder to make the X360 profitable than the PS3.

I mean, in four years X360 only has dropped $100 (from $299 to $199 and $399 to $299), while PS3 in only three years has dropped $300 - from $599 to $299.

Few wrong points there Slimebeast. It's not impossible whatsoever. But it's very likely they will fall YOY, will have to see how aggressive Microsoft is with the advertising.

Elite launched at US$479.99 and the Arcade (Core?) launched at US$299 (Arcade - US$279)

Difference is Microsoft are making money off the 360 and Sony are making a loss.