Price Cuts Ahoy!

[chkdg8]

I knew I was right when I called this one out for the PS3. I say it's due from the fact of having too much pressure from the devs.

"Microsoft may be the first to start a price war by the end of the summer. Nollenberger Capital Partners analyst Todd Greenwald tells GameDaily BIZ that he thinks MS will slash the 360's price (all SKUs) by $50. PS3, PS2 and PSP price cuts are likely to follow. More within..."read more (http://biz.gamedaily.com/industry/feature/?id=16291)

[WOLF]

Thank god!!!!! Took them long enough.

[F34R]

What exactly did you call ? Prices will ALWAYS be lowered eventually. That's the nature of the console business, or most electronic devices at that. As production time increases, costs decrease, they can then lower the price of a console so that the increase their user base. This in turn generates more software and peripheral revenue. It's economics 101. I could have posted this exact information, sounding all professional and all knowing, when in fact that's just how business is done, regardless if I, or any other analysts, write about it.

That article is an analysts take on the market in the future. There haven't been any announcements from any console maker about price changes. You are getting excited over what an analyst has to say ?

[TBGixxer]

I never thought about it but b/c the 360 came out first MS got to extend the length of popularity of the 360 until the PS3 died out. Then MS gets to cut prices first b/c of the length of time it's been out. Good marketing skills, boys!

[F34R]

Well well well. Those PS3 price drops were going to be a direct result of the anticipated 360 price drops, well, I guess PS3 fans will be disappointed.

A response from Microsoft over at Gamerscore blog tells the tale:
http://gamerscoreblog.com/team/archive/2007/06/08/551072.aspx


Some are getting really spun up about the Bloomberg story and inaccurately reading tea leaves that don’t exist. I spoke to Bloomberg nearly two months ago and we were talking about NPD data that had just been released, and chatting generally about price points of consoles in the market. The comment, which is accurately reported, unfortunately has now been taken way out of context and being reported as if I am signaling a price drop. I was not, I am not.


With Xbox 360s selling well at their current price point, Elites selling out at US$ 479, and an insanely great portfolio of games in the market, there’s no reason to announce any kind of price drop anytime soon.


No price cuts in the near future for the 360. Does this mean that the PS3 rumor can be put to bed ?

[-CJJB-]

Well well well. Those PS3 price drops were going to be a direct result of the anticipated 360 price drops, well, I guess PS3 fans will be disappointed.

A response from Microsoft over at Gamerscore blog tells the tale:
http://gamerscoreblog.com/team/archive/2007/06/08/551072.aspx



No price cuts in the near future for the 360. Does this mean that the PS3 rumor can be put to bed ?
F34R think about it.Microsoft would never say "yeh the 360 will drop in price by the end of the summer" Then noone would buy a 360 until the price the drops.Thats bad marketing.Microsoft want people buying 360's all the time.If you were going to buy a 360 and you heard of this price drop you would obviously wait until the end of the summer and save 50 quid.That means sales would plumet until the price drop and no company wants that. :)

[F34R]

Of course that's true.... BUT... you can always say there will be a price drop in the future. The point is, people are getting happy because some analyst is predicting a price drop for the PS3 based on a price drop for the 360. This statement puts that rumor to bed, for not at least. Why would they worry about a price drop now, when they are leading sales, selling out consoles and a weekly basis, and software sales are killing the PS3.