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[The Librarian]

Is it really that much odder than last year's early-August drop?

GhaleonEB's last post.

 

[Chiggs]

How does that matter now?

Because I no longer own those crummy, scratched refurbs they sent me in exchange for my brand new units (edit: make that pristine; not new).

So getting back to your warranty problem...they didn't refund you?

No, and I'm still seething about my experience. If anyone knows a sure-fire way to raise hell about his, I'm all ears.

 

[FightyF]

$100 price drop in 2.75 years for the 360.
$100 price drop in 1 year for the PS3.

Microsoft should have dropped the price before GTA IV. Instead, all we got was talk about how summer was slow and not worth the move. Now, after sales have fallen behind the PS3, had no choice but to drop price. Microsoft needs to pro-active and act like market leader instead of just responding to the situation.

And I think that's why they will never be the market leader.

It's as if they under-estimated the impact of MGS4. Which is a pretty amatuerish thing to do.

 

[mugwhump]

hooooraaaaaaaaaay

 

[Concept17]

Epic failure?
I can give you 3 billion reasons why price cuts don't help that much. Microsoft is making profit,I'm sure they're in no hurry to use the PS3 as a blueprint for price dropping.
Besides,they won't catch the Wii anyways, the gen. is already half over,its too late for that.
May as well stay the course.

For MS maybe...

 

[The Librarian]

$100 price drop in 2.75 years for the 360.
$100 price drop in 1 year for the PS3.

The $100 price drop for the PS3 was absolutely necessary, and Sony is still losing money.

 

[Kagari]

The $100 price drop for the PS3 was absolutely necessary, and Sony is still losing money.

Last I heard it cost them $400 to make a PS3. That was several months ago, so it obviously has changed.

 

[The Librarian]

Last I heard it cost them $400 to make a PS3. That was several months ago, so it obviously has changed.

Hm. I was under the impression that they were still loosing money on it because they are so resistant to a price cut this year.

 

[Mrbob]

Well hopefully there is a 50 dollar price cut across the board at the very least. I would like a HDMI enabled 360 arcade at $199.99. Oh and the Shane Kim self own quote is funny. Par for the course for him! :lol

MS probably expected GTA4 to move more than system than it did. On the flip side, it may be that MGS4 was a bigger system mover than they also expected. Of course people want to buy the 80GB PS3, and having MGS4 and the dual shock 3 included for $499.99 is a heck of a deal.

 

[Hcoregamer00]

Nice, now all they need to do is release the 65nm GPU and I am set.

 

[Talamius]

I don't think price is as much of a factor as some may believe, but this will help. A little. Needs more value than that, re: post below.

 

[burgerdog]

Any idea how much gamestop gives for a 360pro? I know a friend selling his batshit ugly Halo 3 console for $250. I don't mind the ugliness, I just want the hdmi port on it :O Do you guys think it's a fair deal @ $250?

 

[Y2Kev]

Even though Shane Kim's quote is hilarious and is yet another reason why these talking heads are best when silent, this is till a good thing for the 360 and should propel it along further than any other game has.

$300 is still not very cheap. I believe the majority of the PS2's sales came way below this price point.

 

[Talamius]

Well hopefully there is a 50 dollar price cut across the board at the very least. I would like a HDMI enabled 360 arcade at $199.99. Oh and the Shane Kim self own quote is funny. Par for the course for him! :lol

MS probably expected GTA4 to move more than system than it did. On the flip side, it may be that MGS4 was a bigger system mover than they also expected. Of course people want to buy the 80GB PS3, and having MGS4 and the dual shock 3 included for $499.99 is a heck of a deal.

If MS were smart, they'd counter with a 360 Premium with the Wifi adapter and Halo 3 packed in for $299. That might actually move some hardware.

 

[Darklord]

Jesus it's still like $550 here. What a fucking rip off. It should be about $315.

 

[Kagari]

Hm. I was under the impression that they were still loosing money on it because they are so resistant to a price cut this year.

http://gizmodo.com/344141/ps3-production-cost-down-50-sony-finally-breaking-even

 

[TP]

Thats good news, I was getting ready to buy myself a 360
but it that 60GB business is true then ill just wait for that

 

[Dr. Zoidberg]

I think GTA4's underperformance in pushing hardware sales is the big factor. They probably could have held off until later in the year if it had boosted the HW sales numbers but it really didn't, which, let's be honest, surprised a LOT of sales-agers, too.

 

[The Librarian]

http://gizmodo.com/344141/ps3-production-cost-down-50-sony-finally-breaking-even

Well that's good to see.

 

[stotch]

Even though Shane Kim's quote is hilarious and is yet another reason why these talking heads are best when silent, this is till a good thing for the 360 and should propel it along further than any other game has.

$300 is still not very cheap. I believe the majority of the PS2's sales came way below this price point.

Who knows? Maybe $249 will be a mass-market price point -- but historically, $199 has been when you're talking a PlayStation 2-like install base. 80 percent of the business gets done at $199 and below. We're like the other guys, right?

http://www.1up.com/do/newsStory?cId=3161223

This Shane Kim guy is awesome.

 

[Kagari]

I think GTA4's underperformance in pushing hardware sales is the big factor. They probably could have held off until later in the year if it had boosted the HW sales numbers but it really didn't, which, let's be honest, surprised a LOT of sales-agers, too.

One thing I noticed regarding GTA sales: Lots of people bought a 360, however, they were used, thus not counting toward sales.

 

[Tron 2.0]

Is it really that much odder than last year's early-August drop?

I think so.

Last year it seemed like a good preparatory step for Halo 3, which was released a month later. If they had done this in March or early-April before GTA4 dropped I don't think it would be so unusual.

Also, August led them into the Holiday buying season.

 

[Talamius]

One thing I noticed regarding GTA sales: Lots of people bought a 360, however, they were used, thus not counting toward sales.

I noticed this too, for both the HD systems. When most people bought GTA4, they bought used systems. I wonder if our resident Gamestop workers have noticed a glut of people trading in systems as they complete GTA4 the way the Japanese seem to do.

 

[soul creator]

MS, why are you so scared of $199?

 

[Kagari]

I noticed this too, for both the HD systems. When most people bought GTA4, they bought used systems. I wonder if our resident Gamestop workers have noticed a glut of people trading in systems as they complete GTA4 the way the Japanese seem to do.

Not really. Lots of people trading in 360s though for PS3s and MGS4 though :X

But really. Why spend $350 or even $279 when you can get a 360 used for $220?

 

[Agent Icebeezy]

This price cut is GTA related.

 

[dragonlife]

Yes, just what I was waiting for.

 

[jamesinclair]

I honestly forgot that the 360 was more than $300. I think it needs to be even cheaper than that...

Same here. Ill jump in at 199, which was the GC launch price and the Xbox price after a year.

 

[Odysseus]

300$ for a 360 premium?

Absolutely no excuse not to pick one of these up. The software selection is really good and the new hardware changes are fairly solid as well.

I think this will be the 360's last price drop myself. If guys don't eat this up then its because they just don't want it for whatever reason. The price, hardware, and software is absolutely there at this point.

never go into business

Same here. Ill jump in at 199, which was the GC launch price and the Xbox price after a year.

more like six months

 

[gkryhewy]

It's as if they under-estimated the impact of MGS4. Which is a pretty amatuerish thing to do.

Are you serious? What impact is that, exactly? Come on. It's nice to see PS3 starting to do okay in the US, but really.

 

[brigadeer]

The price drop is great and all, but I still have to slap myself in the face to get myself to believe that this system is going on three years old, and just now got to the sub $300 price point.

It makes one wonder how long it will take them to get the system down to the sub $200 price point for mass adoption. I'm thinking by the time that happens, the Xbox 720 will be coming out.

 

[spwolf]

Not really. Lots of people trading in 360s though for PS3s and MGS4 though :X

But really. Why spend $350 or even $279 when you can get a 360 used for $220?

why in the world would you buy used 360?

and how can price drop be an bad news?

 

[Pai Pai Master]

Bring that Elite down too and you've got me sold sooner than I expected, MS.

It's nice to see PS3 starting to do okay in the US, but really.

Just okay?

 

[Liquid]

What odd timing.

My first thought is that they should have done this before GTA4, not after. I can't pretend to know what they're thinking, but I would imagine that they weren't expecting to have to drop the price because there would be excessive demand due to the release of GTA4. When that didn't exactly go according to plan, they turned to a price drop to drive hardware sales.

most retailers have had a $50 giftcard from gta onward.

 

[RBH]

Interested to see how the Arcade and Elite are affected.

 

[Odysseus]

Just okay?

it's more appropriate to say just barely north of crap

 

[P90]

300$ for a 360 premium?

Absolutely no excuse not to pick one of these up. The software selection is really good and the new hardware changes are fairly solid as well.

When that changes to "rock solid reliabilty" I'm in.

 

[speculawyer]

It is about F'in time!

 

[Firestorm]

Just in time for Tales of Vesperia!

 

[AlternativeUlster]

I think I am going to do it. TIME TO FINALLY GET BIOSHOCKED!!!!!!!!!!!!!!

 

[zaidr]

I won't correct the math here, but this line gave me a chuckle.

reading back through that, I guess I may have been a bit off on the math. . What I should have said was they have xbox support stations in two different regions. Some support staff clearly don't understand English very well and are lost most of the conversation, while others seem like they're clearly from North America and are a lot more knowledgeable.

 

[Kagari]

why in the world would you buy used 360?

and how can price drop be an bad news?

Cheapness.

 

[dead souls]

Same here. Ill jump in at 199, which was the GC launch price and the Xbox price after a year.

Me too. I won't pay a cent more than $199 for a 360. This generation's pricing is so awful.

 

[beerbelly]

Well, 50$ drop is ok.....then again, it's summer. There better be at least another 50$ price drop this fall.

 

[GhaleonEB]

Well, 50$ drop is ok.....then again, it's summer. There better be at least another 50$ price drop this fall.

That's what we said last year. Holiday bundle, don't count on another price cut.

 

[Agent Icebeezy]

That's what we said last year. Holiday bundle, don't count on another price cut.

This, in my mind, proves that bundles are going to be in effect this year. The thing is, the Forza/Marvel bundle was huge. The proper game pairings should do similar numbers or better. I think that a Rare game should get a bundle along with an EA game or Activision again.

 

[BLaZiN PRopHeT]

Pachter agrees with the price cut

Responding to recent rumours of an impending Xbox 360 price cut prior to E3, Wedbush Morgan Securities analyst Michael Pachter says that, realistically, it makes a lot of sense.

"Microsoft has historically been a price taker - meaning that they typically wait for Sony to cut first," Pachter told GamesIndustry.biz.

"However, they haven't been in the position of having a cost advantage before, as they do now."

http://www.gamesindustry.biz/articles/xbox-360-price-cut-makes-sense-says-pachter

 

[HK-47]

Oh...I agree. Wii is overpriced from day one.

Your logic...I find it interesting

 

[Odysseus]

Pachter agrees with the price cut



http://www.gamesindustry.biz/articles/xbox-360-price-cut-makes-sense-says-pachter

what does he know, he was telling them not to do it just a couple of months ago.

 

[Beer Monkey]

$100 price drop in 2.75 years for the 360.
$100 price drop in 1 year for the PS3.

And I think that's why they will never be the market leader.

It's as if they under-estimated the impact of MGS4. Which is a pretty amatuerish thing to do.

Actually, if the 360 came out at $599 and sold like a turd, I'd say they would have dropped more than the PS3 did.

These prices are based on market response and not some kind of grand strategy based on a better understanding of consumers. :lol