Microsoft's Bach Ready for Price War Options

[Xbox-Scene]

Microsoft's Bach Ready for Price War Posted by XanTium | November 27 10:30 EST

From next-gen.biz: [QUOTE] Robbie Bach, president of Entertainment and Devices at Microsoft, believes a future hardware price battle will decide the outcome of Xbox 360's struggle with PlayStation 3. In an interview with San Joe Mercury News, he said that the company is seeking to bring down Xbox 360's costs in preparation for a price initiative that he believes Sony will be unable to follow. Responding to a question on the hardware wars, he said, "You have look at the economics. You have to ask the question, over the life cycle, who has the cost advantage? Who can price most effectively? Who can reach the price points quicker? That has a huge impact on what gets driven." He added, "Because we were out there first, we have a bigger installed base of consoles. We can drive down the manufacturing curve sooner and faster. And because we designed a box that was fundamentally easier to manage on costs, we're going to have that advantage." [/QUOTE] Read More: next-gen.biz and mercurynews.com

[0794]

With Blu-Ray built-in to the PS3, Sony will be significantly behind on any price-war for a good while...and MS has already cut costs 38% per previous articles...

[blackchild1101]

don't expect a price drop till 08

[mlapaglia]

m$ is MAKING money on each 360 they sell lol, they aren't going to price drop anytime soon. look at the price difference between the ps3 and 360 right now, it's quite significant.

if the xbox drops its price anymore, people are going to assume that it's inferior to the ps3 because of the price difference, and shell out for the ps3 instead. good move m$

[Mega_mil]

m$ is MAKING money on each 360 they sell lol, they aren't going to price drop anytime soon. look at the price difference between the ps3 and 360 right now, it's quite significant.

if the xbox drops its price anymore, people are going to assume that it's inferior to the ps3 because of the price difference, and shell out for the ps3 instead. good move m$

I doubt that. It's people like that who pay outrageous prices for electronics because they THINK it's better. This economy is pretty f'd up and I think people, especially parents, use more of their brain now. They will look at the one with the better price point. Think about Xmas coming, you can get a prem 360 and still buy a another gift for someone if you were comparing it to the PS3.

[mlapaglia]

I doubt that. It's people like that who pay outrageous prices for electronics because they THINK it's better. This economy is pretty f'd up and I think people, especially parents, use more of their brain now. They will look at the one with the better price point. Think about Xmas coming, you can get a prem 360 and still buy a another gift for someone if you were comparing it to the PS3.

i guess that's true, i was just thinking about the loaded parents who want the "best" for their kids i guess lol. i'd say that the 360 is priced pretty competitively now though, they don't really have a reason for a price drop.

[BrooksyX]

I hope they announce when there is going to be the drop because I would be pretty mad if I bought an xbox 360 and 2 weeks later they cost $100 less.

[0794]

Think about Xmas coming, you can get a prem 360 and still buy a another gift for someone if you were comparing it to the PS3.

Remember that this Christmas is different though - MS doesn't have to reduce the price of the 360 because you can't even buy a PS3 even if you wanted one.

People are even still waiting in lines for Wii's with each shipment and people are still walking away empty-handed - saw this happen yesterday at Best Buy.

[elmo_sni]

maybe a 20 - 50 dollar price cut is in order... would up sales drastically, especially for the 07 holiday season

[Jeneral]

i'd say that the 360 is priced pretty competitively now though, they don't really have a reason for a price drop.

The only reason MS hasn't dropped the price is because Sony debuted their system at a higher price point than expected. If Sony had released the premium system at $399 US you can bet MS would've cut the premium system by $100. The original Xbox had a $100 price cut just 7-8 months after it was released. At that time MS was already losing a ton on each Xbox sold and just to stay competitive, they lowered the price. Price is determined by what the market will bear as well as what the competition is doing.

This post has been edited by Jeneral: Nov 27 2006, 05:25 PM

[notguiltystyle]

2 xbox 360 core units = 1 ps3 (thats just crazy)

[skEwb]

They slap development costs on products like "blu-ray" that's why it increases the price of the console, in reality it's probably not that much to make as far as materials are concerned. But hey they gotta make $ somehow and not pay a lot in taxes right? It's all business tricks kids. What's so different between a regular dvd drive and blu-ray? Just the laser diode, dvd drives are what $30? heh

This post has been edited by skEwb: Nov 27 2006, 05:31 PM

[grim_d]

im an average joe 20 year old student, i have a part time job of ~25 hours a week.

I get paid monthly, on one wage I could afford a 360 and 3 or 4 games, i couldnt afford a ps3. id be short by about £50.

I think many people are in a position similar to mine, and i think that says a lot.

im not having a bash at sony, i just think this price is stupid.

[Hmerly]

Another issue with Sony including Blu Ray in the PS3 is that Sony has to pay a lot of royalties for including Blu Ray. They've got to pay royalties for all the codecs and technologies that are included in BR. Much of it they own, but a lot of it still goes to other companies. Its another reason why, I feel, Sony really shot themselves in the foot going with their "synergy" plan throughout the company. Forcing BR on all their console fans has alienated a lot of customers who would have otherwise jumped all over the PS3, had it been at a more attractive price point.

[thepissedoffman]

I doubt that. It's people like that who pay outrageous prices for electronics because they THINK it's better. This economy is pretty f'd up and I think people, especially parents, use more of their brain now. They will look at the one with the better price point. Think about Xmas coming, you can get a prem 360 and still buy a another gift for someone if you were comparing it to the PS3.

Where the heck do you live? Right now the US economy is hawt.