The Divnich Tapes: Xbox 360's July Disappoinment Options

[Xbox-Scene]

The Divnich Tapes: Xbox 360's July Disappoinment Posted by XanTium | August 18 19:05 EST | News Category: Xbox360

From gamasutra.com: [QUOTE] The biggest story this month is clearly in the hardware category, with all the major consoles posting lower than expected results. For today, we will specifically analyze the Xbox 360, as it posted one of the most disappointing results of the year. So, why all the fuss about July's performance? Because analysts like myself expected a lot more. Our reasoning behind it was -- at the time -- logical. Price cuts typically increase sales 20-30 percent in the short-term, but we reasoned that because this was a "temporary" offer, consumers would rush to retailers to get an Xbox 360 before inventory ran dry. This is exactly what happened, but, in hindsight, we forgot to take into consideration a few crucial factors. First, this was a clearance sale on only the Pro model, which means that consumers who planned to purchase the Elite model would not likely be enticed by this offer. Those who had planned to buy an Arcade model in July, however, were likely attracted by the offer. But keep in mind that this does not add more Xbox 360 sales -- it only shifts market share between the models. We were right when we speculated a 20-30 percent increase in short-term sales; however, we applied that to overall sales when we should have just applied it to the Pro model market share. Working it out, mathematically, adds a little more clarity. [/QUOTE] Full Story: gamasutra.com

[spinr34]

this is the best comment from an analyst i have ever read.

[Bandit5317]

An analyst who admits he was wrong and corrects himself. Frankly, I'm astonished.

[trentdadi]

I think they also forgot to take into account that there hasn't been a really good game released in a while. If you dont have an xbox360 by now, there really isn't much point in getting one now, mine as well wait for christmas.

[deadlokIV]

this is the best comment from an analyst i have ever read.

Yea right!
When this guy talks about the shifting between the internal xbox sales categories it really get's you thinking how much more complicated it is to nail sales figures like these.
I enjoyed reading the analysis thoroughly.

[twistedsymphony]

Both the Xbox 360 and PS3 should be much closer to the $200 price point than they are... honestly, based on past generations they should be closer to $250 these days...

this whole dropping the price of a lower model to clear it off shelves and introducing a newer model at the same price of the old one is getting really f-ing old.

I though it was ridiculous that Sony had been doing it through this whole generation, but them MS pulls the same stunt with the 20GB... honestly the last thing they should be doing is getting marketing ideas from Sony.