Next-Gen.boz Opinion: Xbox 360’s Price Cut Options

[Xbox-Scene]

Next-Gen.boz Opinion: Xbox 360’s Price Cut Posted by XanTium | November 28 12:10 EST

From next-gen.biz: [QUOTE] Next-Gen looks at the likely timing and nature of an Xbox 360 price-cut, and gauges opinion from leading analysts. Just because Microsoft can drop the price, it does not follow that it will do so. Bach's division is under enormous pressure to deliver profitability. Cutting prices, and therefore eliminating margins, is rarely a good way to make money. Ultimately, if Microsoft has to choose between market leadership and profitability, it will plump for profitability. Michael Pachter at Wedbush Morgan Securities says, "Notwithstanding Robbie's comments to the contrary, Microsoft is not a charity, and they won't cut price just because they can. Rather, I think Microsoft is a price taker, and they will cut only when Sony does." There is another problem here. Microsoft's dilemma is that a price cut will be interpreted as an admission that its machine is next-gen lite; that it does not quite have the rocks of PS3. And although there is little factual evidence of this, PS's later launch gives it that lustre of ultra-modernity. This is where Xbox 360's one-year lead begins to lose its shine. Perhaps the last word should go to Paul-Jon McNealy at American Technology Research, who takes a definite view on all this, "Our position has been that an Xbox 360 price drop is likely in the second half of CY07. No change there." [/QUOTE] Read More: next-gen.biz (2 pages)

[bucko]

Maybe this is just to form Wii60?

[Textbook]

That typo (next-gen.boz) sounds weird.

Xbox 360 doesn't need to drop price at all, you can't get a PS3 or Wii right now, so people will buy the only system available.

[elmo_sni]

allard needs to convince microsoft to change it's marketing campaign to something like "Newer Isn't Better" and just be str8 up about it and have screens of both ps3 and 360 runnin the same game... cause we already know all cross platform games are going to be ported from 360 thus looking much better on 360's 512mb ram...

idk, hopefully people will start to realize MGS4 and square enix games are the only thing sony has...
(thats all i have one for, and maybe some linux ?)

[BumSki]

Cutting the price may hurt sales. From a value point perspective, would the public perceive the substantial difference in price from the PS3 cause concern? Would mainstream buyers go with a PS3 because its cost more, so its got to be inferior (mentality).

This post has been edited by BumSki: Nov 28 2006, 06:26 PM

[ILLusions0fGrander]

cutting the price = more console sales = more software sales = more xbox live accounts.

id go for getting the console in more homes, before sony has a chance to play catch up.

[0794]

Xbox 360 doesn't need to drop price at all, you can't get a PS3 or Wii right now, so people will buy the only system available.

exactly, talking about a price drop any time soon is premature. a price drop would only be done to steer market share, but with the ps3 commonly unavailable for months, no need to drop...and with production costs down so much, MS is in a good position.

[brywalker]

They need to have a sick rebate program for 1 weekend only.

Do a "Celebrate 1 year of XBOX 360" (I know, it's late) and have the following:

XBOX 360 Premium - Get a free 1 year live membership card, Platinum Hits Game, and Wireless Controller by mail if purchased between said dates.

XBOX 360 CORE - Get a free 1 year live membership card, Platinum Hits Game, and Wired Controller by mail if purchased between said dates.

Holds more value than a cash rebate, and they are sending this stuff out at cost. Only do it for 1 weekend Fri - Sun.

They could sell out at every store easily. Also, a lot of people won't even be able to use the live account, but will still see value in the other items so MS isn't losing as much.

[wowimsocute]

Xbox 360 doesn't need to drop price at all, you can't get a PS3 or Wii right now, so people will buy the only system available.

or the parents will say, "no ps3? well, the ps2 is good enough and super cheap. i'll grab one of those." i mean at bestbuy, they had a big old stack of ps2s. and i bet people would buy them too.

They need to have a sick rebate program for 1 weekend only.

They could sell out at every store easily. Also, a lot of people won't even be able to use the live account, but will still see value in the other items so MS isn't losing as much.

that is a killer idea. or they could have "secret agreement" with some company to sell them half off (or something ridiculous) and then the public could see it as a great 2-day sale by the company, and not a price drop due to inferiority.