Why is the heck is Xbox 360 still $199 and it's 2015?

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cainetao11

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#51 cainetao11
Member since 2006 • 38077 Posts

@tormentos:

"So yeah what site and internet forum say MS has take it to heart this gen.."

we're not taking about this gens system here are we? In the end what is the title of this thread? Is it "Do you feel the 360 should be priced lower at this point?" No, that isn't the title super genius.

The title is "Why the hell is the 360 still $199 in 2015?" And my answer remains the same. Obviously because MS haven't felt the need to drop the price. Its not my problem that people here are arguing with me because they think their personal opinion applies to the question in the title.

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coasterguy65

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#52  Edited By coasterguy65
Member since 2005 • 7133 Posts

@tormentos: Yeah of course I meant the PS3, since there is no PS4 Super Slim.It was a mistake I admitted to earlier...

I got to be honest. I didn't bother to read the rest of the crap you wrote. Reading your replies makes my head hurt, and also makes me want to argue with you. Which of course we all know is very frustrating, and gets no results since you don't really listen anyway. So I'm just going to assume it went something like this.... I know you said that both consoles should be selling for $99 at this point in the generation, but I am going to write line after line of why the PS3 should be selling for at least $100 more than the 360...Blu-ray...Super Secret Cell Processor Powa.......Kojima's rainbow of happiness in each unit.....massively more powerful.....cures cancer.....protects Japan from guys in rubber lizard suits...has sold 200 million more units than the 360 according to some obscure Sony fan site........look I have links......etc...etc...(insert missing rolling eyes emoji here).

Seriously though, in every console generation. Whatever the latest version of the PS / Nintendo / MS / Sega console of the time would have been selling at the $99 price point 5 or so years in into that generation. Both MS and Sony are just being greedy. The only real difference between the 360 and the PS3 is the BD drive, and those things cost like $20 now. Hell a local bank was giving away Sony Blu-ray players if you opened an account not that long ago.

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c_smithii

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#53  Edited By c_smithii
Member since 2003 • 1505 Posts

@cainetao11 said:
@c_smithii said:

@cainetao11 said:

@c_smithii said:

@cainetao11 said:

@c_smithii said:

@cainetao11 said:

@c_smithii said:

@cainetao11 said:

@FreedomFreeLife said:

Because people keep buying and Microsoft earns billion profit. So why would you lower your price when its almost same powerful as Wii U but with more games, better games and better online?

And that's all she wrote. Bad business to lower the price based on what happened in the past instead of what the current consumer market is dictating. Obviously the console is still selling enough at $199.

but its not.

http://www.gamespot.com/articles/gamestop-we-d-love-to-see-xbox-360-ps3-price-cuts/1100-6423751/

So gamestop decides at what level MS is satisfied with the sales of the 360? Always makes sense to let another company dictate what your company does.............sure.

Gamestop is a retailer, MS relies on it's retailers to move its units. If a retailer reports that their sales for a system has been poorly and believe a price drop would light a fire in the buy of a slow selling product, yes that would dictate that perhaps the manufacture should listen to its retailer.

In theory? Sure. But as I said to begin with, I guess MS is satisfied with the numbers they have been seeing. If they haven't been, they would have dropped the price by now. But what am I saying, its not like its a multi billion dollar corporation with teams of market analysts. We here at SW definitely know better.

Slightly off-topic, but since you want to go there. MS being a multi-billion dollar corporation with market analyst as you put it doesn't mean that said company will make all the correct decisions, as in this case not taking advantage of a fruitful opportunity with a price drop of its xbox 360 as one of its retailer Gamespot has pointed out.

Secondly a multi-billion dollar generally ends up losing its main product focus, alienates its consumer base, and sometimes ends up flopping big.

Microsoft made a slue of these mistakes in recent years, one with its Xbox One launch, its mis-mangement exclusive games for the Xbox 360 in it's later years are just two that come to mind that I can go deeper on but we really would be reaming off topic.

Continuing with "off topic" non sense, I find it hard to believe a company like Microsoft got to where they are NOT out strategizing people on an internet forum. I'll gamble on their people over you any day. In fact, as a share holder of both MSFT and SNE I already have

Face it, you couldn't refute the article I linked that backs my point that 360 needs a price drop. The only non-sense is you trying to make system wars discussion of consoles seem irrelevant because we're not employees of Microsoft or Sony. Terrible fallacy on your part. You lose. :)

Great job pulling that shit out of your ass. What are you talking about? When did I bring up us not being employees?

I don't need to refute the article because the question isn't do you, me or Gamestop feel the 360 needs a price drop. The question was "Why the hell is the 360 still $199 in 2015?" See, there is YOUR terrible fallacy. I read the titles question and stand by my answer. The fact that A) Gamestop is not the only retailer, ever hear of BestBuy, Walmart, Target and B) MS hasn't dropped the price even with that fuckin article backs up what I said. They obviously don't feel like they need to. If they did, they would have dropped the price already. Nice try, good game, see you out there

So now you want to say the link I provided about Gamestop is something I pulled out of my ass?

Aren't you claiming that you're a stock share holder of both Microsoft and Sony and since we aren't our opinion doesn't matter. I call that pulling shit out of one's ass to try to win an argument. Claim you hold stock in a company and therefore only said company will listen to you. When you own jack shit and are just sitting up here on SW baiting with me because I provided proof that retailers aren't happy with last gen sells due to lack of a price cut.

Got anything more to add?

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cainetao11

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#54  Edited By cainetao11
Member since 2006 • 38077 Posts

@c_smithii:

I sure do pal. It seems your assuming a lot in this back and forth. I brought up being a shareholder while making the point I will put my faith in the marketing analysts over your opinion any day

Being a shareholder doesn't make me an employee. It was the employee comment that came from your ass, not the gamespot article (more assumptions by you)

"When you own jack shit and are just sitting up here on SW baiting with me because I provided proof that retailers aren't happy with last gen sells due to lack of a price cut."

Who else did you provide proof from? I see gamstop, one retailer, and again that's NOT what the thread asked. Read the question in the title again guy. It doesn't ask for gamestops opinion, yours or mine. It asks "Why the heck is the 360 still $199 in 2015?" And again obviously because MICROSOFT, not you, not Gamestop, not me, MICROSOFT haven't felt they need to lower it. Prove to me Microsoft do feel it should be lower. But you'll probably just assume more, look for more opinions wont you?

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tormentos

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#55 tormentos
Member since 2003 • 33798 Posts

@cainetao11 said:

@tormentos:

"So yeah what site and internet forum say MS has take it to heart this gen.."

we're not taking about this gens system here are we? In the end what is the title of this thread? Is it "Do you feel the 360 should be priced lower at this point?" No, that isn't the title super genius.

The title is "Why the hell is the 360 still $199 in 2015?" And my answer remains the same. Obviously because MS haven't felt the need to drop the price. Its not my problem that people here are arguing with me because they think their personal opinion applies to the question in the title.

The xbox 360 is an over price shit console at this point,and the fact that on this holiday with $80 more you could buy a XBO is a statement of how stupid those price are.

@coasterguy65 said:

@tormentos: Yeah of course I meant the PS3, since there is no PS4 Super Slim.It was a mistake I admitted to earlier...

I got to be honest. I didn't bother to read the rest of the crap you wrote. Reading your replies makes my head hurt, and also makes me want to argue with you. Which of course we all know is very frustrating, and gets no results since you don't really listen anyway. So I'm just going to assume it went something like this.... I know you said that both consoles should be selling for $99 at this point in the generation, but I am going to write line after line of why the PS3 should be selling for at least $100 more than the 360...Blu-ray...Super Secret Cell Processor Powa.......Kojima's rainbow of happiness in each unit.....massively more powerful.....cures cancer.....protects Japan from guys in rubber lizard suits...has sold 200 million more units than the 360 according to some obscure Sony fan site........look I have links......etc...etc...(insert missing rolling eyes emoji here).

Seriously though, in every console generation. Whatever the latest version of the PS / Nintendo / MS / Sega console of the time would have been selling at the $99 price point 5 or so years in into that generation. Both MS and Sony are just being greedy. The only real difference between the 360 and the PS3 is the BD drive, and those things cost like $20 now. Hell a local bank was giving away Sony Blu-ray players if you opened an account not that long ago.

Well is not my fault that you are an idiot,who can't actually grasp the hardware difference between both consoles,i didn't even name cell the xbox also has a CPU and GPU but it doesn't have Blu-ray which the PS3 does has.

The PS3 cost more to manufacture than the xbox 360 it is a known fact,on top of this sony doesn't charge for online play like MS does which make the xbox 360 even a bigger robbery.

http://www.newegg.com/Product/ProductList.aspx?Submit=ENE&DEPA=0&Order=BESTMATCH&Description=bluray+player&N=-1&isNodeId=1

Blu-ray for $20 maybe in you own personal fantasy island..

The PS3 initial cost was $600 not $300 like the PS2 which took like 9 years to hit $99,the PS3 is 8 years old at that time the PS2 was $129,the PS2 only drop $200 to reach $99 and it took 9 years and 1 month,on April 2009 it hit $99.

The PS3 in 8 years has drop a whopping $350 on the most expensive model and $300 on the cheapest one,it has loss already from $100 to $150 more in 1 year less than what the PS2 has,now compare that to the xbox 360.

Release on 2005 for $399 and $299 9 years latter (like the PS2) the unit has loss $150 from the premium and $120 from the core model in 9 freaking years,that is from $50 to $70 less than what the PS2 loss in those same 9 years.

So yeah don't talk to me about that crap the PS3 has been more expensive to make all gen long than the xbox 360 and still is and Bluray in hell is $20 dollars dude,stop pulling shit form your buns.

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coasterguy65

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#56 coasterguy65
Member since 2005 • 7133 Posts

@tormentos:

You can buy new BD replacement drives for PS3s on ebay for $$50. How much do you think Sony is paying for that same drive when they buy in bulk? A hell of a lot less than $50.

You can't really do a New Egg search on a stand alone BD player. Then act like that price is the same price that Sony is paying for just the drives inside a PS3. They are two entirely different entities.

OMG dude who the hell cares anyway. Here I'll make you happy. The PS3 should cost $400 at this point...are you happy? All hail Sony for being so benevolent and selling it for only $300...

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c_smithii

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#57 c_smithii
Member since 2003 • 1505 Posts

@cainetao11 said:

@c_smithii:

I sure do pal. It seems your assuming a lot in this back and forth. I brought up being a shareholder while making the point I will put my faith in the marketing analysts over your opinion any day

Being a shareholder doesn't make me an employee. It was the employee comment that came from your ass, not the gamespot article (more assumptions by you)

"When you own jack shit and are just sitting up here on SW baiting with me because I provided proof that retailers aren't happy with last gen sells due to lack of a price cut."

Who else did you provide proof from? I see gamstop, one retailer, and again that's NOT what the thread asked. Read the question in the title again guy. It doesn't ask for gamestops opinion, yours or mine. It asks "Why the heck is the 360 still $199 in 2015?" And again obviously because MICROSOFT, not you, not Gamestop, not me, MICROSOFT haven't felt they need to lower it. Prove to me Microsoft do feel it should be lower. But you'll probably just assume more, look for more opinions wont you?

Why do I need to provide proof of more retailers? Why are you talking side ways. You made a comment that I simply proved was wrong. You're the one who's trying to dodge the link I post to your comment. Just accept the fact that its not just gamespot SW posters who think there should be price drop. Get over yourself pal don't tell me on how to run my own thread.

and to update my original post I just ended picking up a Xbox 360 4GB E system I found at Frys for $139 over the weekend. Screw trying to repair my non-reading disc 360, I read further that I could potentially risk getting it banned if I would have tried to flash key it. Nor the other fix which required soldering the old the logic board with the replacement could potentially break the replacement drive if not done right.

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cainetao11

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#58 cainetao11
Member since 2006 • 38077 Posts

@tormentos:

Fine. Still doesn't change the obvious answer to what the thread asked

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cainetao11

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#59 cainetao11
Member since 2006 • 38077 Posts

@c_smithii: No buddy your the one missing the point. You didn't ask do we feel the 360 needs a price cut. I certainly do. You asked why is it the price it is. I said its obviously selling enough to not cut it. You then came with Gamespt's article about Gamestop calling for a cut. But who makes the decision to cut the price? Microsoft. And they haven't. Simple logical conclusion is its selling enough to Microsoft as it is. Other wise they would have already cut the price. I don't get why this is hard for you to grasp.

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deactivated-5a30e101a977c

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#60  Edited By deactivated-5a30e101a977c
Member since 2006 • 5970 Posts

Because they are still selling well for that pricepoint... Money money money

Could be that they are going break-even on the Xbox One at the moment, so this way they still make a small profit

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tormentos

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#61 tormentos
Member since 2003 • 33798 Posts

@coasterguy65 said:

@tormentos:

You can buy new BD replacement drives for PS3s on ebay for $$50. How much do you think Sony is paying for that same drive when they buy in bulk? A hell of a lot less than $50.

You can't really do a New Egg search on a stand alone BD player. Then act like that price is the same price that Sony is paying for just the drives inside a PS3. They are two entirely different entities.

OMG dude who the hell cares anyway. Here I'll make you happy. The PS3 should cost $400 at this point...are you happy? All hail Sony for being so benevolent and selling it for only $300...

You can buy also a PS3 in ebay and a 360 to does that mean its price dropped.?

Blu-ray wasn't $20 $50 yeah maybe you can find a deal but mostly is $79 or more.

No that doesn't show the price it cost sony but $20 dollars they don't cost and sony ones cost like $100 $89.

No i am not saying that but your are to stupid to actually understand that both units don't cost the same to make,they have never cost the same,since day 1 that is a fact and the PS3 in price has drop a ton while MS has barely drop the price of its console.

MS has drop more the xbox one price in a few months than they drop the xbox 360 price in 9 years..hahaha

@cainetao11 said:

@tormentos:

Fine. Still doesn't change the obvious answer to what the thread asked

I could care less and your are wrong not only in price theory also on the offtopic shit MS do care what sites say deep enough to make a 180 in almost every respect of their console.

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DEadliNE-Zero0

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#62  Edited By DEadliNE-Zero0
Member since 2014 • 6607 Posts

You think that's bass. The PS3 is still 250 euros. But the answer for both M$ and $ony is, well, money

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PSP107

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#63 PSP107
Member since 2007 • 18984 Posts

@lundy86_4:

Yea I agree. But I do wish they were lower. Right now I'm considering GameStop to buy a used PS3.

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2Chalupas

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#64 2Chalupas
Member since 2009 • 7286 Posts

@cainetao11 said:

@2Chalupas said:
@cainetao11 said:

@c_smithii said:

@cainetao11 said:

@FreedomFreeLife said:

Because people keep buying and Microsoft earns billion profit. So why would you lower your price when its almost same powerful as Wii U but with more games, better games and better online?

And that's all she wrote. Bad business to lower the price based on what happened in the past instead of what the current consumer market is dictating. Obviously the console is still selling enough at $199.

but its not.

http://www.gamespot.com/articles/gamestop-we-d-love-to-see-xbox-360-ps3-price-cuts/1100-6423751/

So gamestop decides at what level MS is satisfied with the sales of the 360? Always makes sense to let another company dictate what your company does.............sure.

Actually, it does make sense. You do realize Gamestop is probably one of the largest retail partners, up there with Wal-Mart, Best Buy, Target. I'd say their opinion carries quite a bit of weight if they comment on the price desperately needing a cut.

Besides, they aren't dictating anything to Sony or Microsoft. They are just stating the reality of what is happening to the old consoles - which should be obvious.

Yes to the questions you asked. I am aware that company's take what retailers say into their pricing decisions. But his and my conversation is, like this thread about WHY hasn't 360 gotten a price drop. Not do I feel it should have a price drop. As far as why hasn't there been a price drop, I stand by my answer. Obviously MS hasn't felt the need to as of yet.

Because they haven't acted doesn't mean there is sound logic behind their reasoning. These companies drop the ball all the time (as the PS3 launch showed, as the XB1 launch disaster showed, and as some of their constantly out of whack digital prices show).

It seems that price cuts will have to be coming soon, either that or the old consoles will be discontinued. There is no way to continue selling them for $249 or $199... retailers will just refuse new inventory at some point. Hell, it won't be too much longer before people are hypothesizing hardware revisions and price cuts on the NEW consoles.

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#65  Edited By coasterguy65
Member since 2005 • 7133 Posts

@tormentos:

You can buy also a PS3 in ebay and a 360 to does that mean its price dropped.? One is a brand new drive BD drive..one is a full console. They aren't the same thing.

Blu-ray wasn't $20 $50 yeah maybe you can find a deal but mostly is $79 or more. Yes the average BD player is around $80, but I can walk into Wal-Mart right now and pull a $49 LG BD player off the shelf and buy it right now. Obviously it didn't cost LG $50 to make that player. There was the cost of parts, packing materials, transportation, advertising, and Wal-Mart's markup. So assuming that the actual BD drive cost them around $20 is not unreasonable.

No that doesn't show the price it cost sony but $20 dollars they don't cost and sony ones cost like $100 $89. Nope Sony BD player at Best Buy $60 and the first one I looked up. I bet I could have found one cheaper if I invested the time.

No i am not saying that but your are to stupid to actually understand that both units don't cost the same to make,they have never cost the same,since day 1 that is a fact and the PS3 in price has drop a ton while MS has barely drop the price of its console. I never said they cost the same to make. That's something you have assumed I believe. You are the one that is trying to make it seem as if it is costing Sony a shit ton more money to make a PS3 now because it has a Blu-ray drive, free online, and other stupid facts you were throwing out there. Sure it cost Sony a ton more to make the PS3 when it first came out. The BD drives were ridiculously high back then. That's my point...they aren't ridiculously high price wise now. You can't use 2005 prices, and act like Sony should still be charging $100 more for a PS3 because it has a $20 BD drive in it versus a $5 DVD drive.

As far as the price drops go it's simple business. They started with a $600 product that was only slightly more powerful (technically) than the $300 product they were in direct competition with. Of course they had to drop their price faster.

MS has drop more the xbox one price in a few months than they drop the xbox 360 price in 9 years..hahaha What does this have to do with where the PS3 and 360 are priced?

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tormentos

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#66 tormentos
Member since 2003 • 33798 Posts

@coasterguy65 said:

@tormentos:

You can buy also a PS3 in ebay and a 360 to does that mean its price dropped.? One is a brand new drive BD drive..one is a full console. They aren't the same thing.

Blu-ray wasn't $20 $50 yeah maybe you can find a deal but mostly is $79 or more. Yes the average BD player is around $80, but I can walk into Wal-Mart right now and pull a $49 LG BD player off the shelf and buy it right now. Obviously it didn't cost LG $50 to make that player. There was the cost of parts, packing materials, transportation, advertising, and Wal-Mart's markup. So assuming that the actual BD drive cost them around $20 is not unreasonable.

No that doesn't show the price it cost sony but $20 dollars they don't cost and sony ones cost like $100 $89. Nope Sony BD player at Best Buy $60 and the first one I looked up. I bet I could have found one cheaper if I invested the time.

No i am not saying that but your are to stupid to actually understand that both units don't cost the same to make,they have never cost the same,since day 1 that is a fact and the PS3 in price has drop a ton while MS has barely drop the price of its console. I never said they cost the same to make. That's something you have assumed I believe. You are the one that is trying to make it seem as if it is costing Sony a shit ton more money to make a PS3 now because it has a Blu-ray drive, free online, and other stupid facts you were throwing out there. Sure it cost Sony a ton more to make the PS3 when it first came out. The BD drives were ridiculously high back then. That's my point...they aren't ridiculously high price wise now. You can't use 2005 prices, and act like Sony should still be charging $100 more for a PS3 because it has a $20 BD drive in it versus a $5 DVD drive.

As far as the price drops go it's simple business. They started with a $600 product that was only slightly more powerful (technically) than the $300 product they were in direct competition with. Of course they had to drop their price faster.

MS has drop more the xbox one price in a few months than they drop the xbox 360 price in 9 years..hahaha What does this have to do with where the PS3 and 360 are priced?

For the intended purposes they are both because it is goods which you can shop cheaper on ebay that doesn't constitute a real price point.

LG doesn't make sony's drives which are more expensive and the PS3 is basically one of the finest blu-ray players out there it has been since launch,when it beat the crap out of $1000 stand alone models in picture quality.

No that is something you have to try to imply specially adding stuff like $20 blu-ray players in your fantasy island.

Lets see MS uses cheap ass DVD which is even cheaper than blu-ray,it uses a soc on the slim 360 for years which reduced allot the price of making the unit,since it no longer has to carry 2 chips,and its CPU and GPU components have always been a tad cheaper than Cell and the RSX,the xbox 360 doesn't use XDR which is more expensive than DDR3,it lacks blu-ray and its flash storage is actually 4Gb vs the PS3 12GB one which is 3 times the size and should cost more even if by 1 or 2 dollars.

This are fact ^^ and i am not counting that online play is not free on xbox 360,is $60 a year which actually rise the cost of the unit period it is like that want online PAY period there is no way around that,just like on PS4 now,on PS3 is not that way so yeah it is cheaper so if any console should be $99 considering that you on the spot have to trow another $50 for online play and still be missing features is the xbox 360 not the PS3.

Yeah but that $600 product carry tech inside it that was worth $1,400 in 2006 if you wanted what it offer some place else,saying the PS3 was barely more powerful at $600 and using the $300 xbox 360 as comparison is a joke,that unit came without HDD,it wasn't even backward compatible by default because it need it a storage device for backward compatibility that screw up that model was.

What the PS3 offer for those $600 give the xbox 360 a run for its money,even more on the core model,fact is sony dropped a hell of allot more than MS did,if there is a unit that really need to be $99 is the core xbox 360,hell MS has drop the price more on the xbox one already on its first year than it did with the xbox 360 in 9 you can compare how the 2 MS compare 360 days and xbox one days.

Allot it show that MS has barely drop the price of the unit in 9 years when this gen they have already loss more,funny how desperate MS act when it knows it is well behind,compare to the 360.

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#67  Edited By coasterguy65
Member since 2005 • 7133 Posts

@tormentos:

Wow you really are just a dumb ass. You just can't seem to grasp the fact that there is a difference in a retail product and a bulk purchased BD drive that is put into a PS3 can you? Or the fact that free online has nothing to do with the price point that a console sells at. I'm done wasting my time with this crap. You're obviously too dense in the head, or too far up Sony's ass to see reality.

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PurpleMan5000

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#68 PurpleMan5000
Member since 2011 • 10531 Posts

I have been waiting on a $99 price point for a couple of years now. I'm starting to think it will never come and MS will just discontinue the console at its current laughable price point.

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SUD123456

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#69 SUD123456
Member since 2007 • 7059 Posts

Your own perspective answers the question and applies to both MS and Sony.

1. They are selling at $200 and you want them to sell at $100, meaning they need to sell at least twice as many units just to breakeven on the revenue line.

2. On the profit line they would need to sell more. Let's assume their cost to produce and distribute is only $50, with a profit margin of $150. And lets assume they sell around 3M units. That is about $450M in profit margin. If they drop to $100 consumer price they would then need to sell 9M units for the same profit, which is not going to happen.

3. If you are buying this late in a generation then you are either a laggard or replacement customer. If you are a laggard, then you won't be buying a current gen system anytime soon, so they might as well stiff you for what they can get now. If you are a replacement customer, they would prefer you to upgrade to a current gen system now and if the price spread is too great between current and last gen then they risk you staying last gen, which they don't want.

4. They will reduce last gen pricing again when they are able to produce current gen cheaper through meaningful hardware revisions. That will allow them relative pricing flexibility across both generations so they can maximize value from all segments including laggards, replacers, and mainstream new adopters.

5. They are already abusing the early adopters for this gen with relatively weak h/w upgrades and mediocre libraries.

6. The consumer decides everything in this category. Buy or don't.

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#70 OniLordAsmodeus
Member since 2010 • 381 Posts

The PS2 came out in 2000. Didn't it only get under $100 in like 2010 or something?

I don't think the 360 still being $200 is that big of a deal. When sales slow, they will cut the price. It's like all other products in every other market.

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cainetao11

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#71 cainetao11
Member since 2006 • 38077 Posts

@tormentos: "I could care less and your are wrong not only in price theory also on the offtopic shit MS do care what sites say deep enough to make a 180 in almost every respect of their console."

So then you do care. Learn how the expression works. I never gave anyone my pricing theory so how can I be wrong on it. I answered the question the thread asks with the only answer any of us have because none of us work for MS. Sorry guy, you're wrong.

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cainetao11

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#72 cainetao11
Member since 2006 • 38077 Posts

@2Chalupas:

I'm having a blast with this thread, dude. I never said Microsoft's pricing logic is sound, or that I personally don't think the 360 needs a price cut. For the record I feel it does. All I did was read what was asked and answer the only logical way I could being I don't work for Microsoft. I think it is logical to conclude they haven't felt the need to drop the price if they..........you know haven't dropped the price. Whether that's sound business, right, a sin against the pope is not what brought to the table with my answer.

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blue_hazy_basic

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#73 blue_hazy_basic  Moderator
Member since 2002 • 30854 Posts

@aroxx_ab said:

How do think MS can afford the massive Xboner pricecuts?

A company-wide successful business model which generates huge amounts of profit?

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cainetao11

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#74 cainetao11
Member since 2006 • 38077 Posts

@SUD123456 said:

Your own perspective answers the question and applies to both MS and Sony.

1. They are selling at $200 and you want them to sell at $100, meaning they need to sell at least twice as many units just to breakeven on the revenue line.

2. On the profit line they would need to sell more. Let's assume their cost to produce and distribute is only $50, with a profit margin of $150. And lets assume they sell around 3M units. That is about $450M in profit margin. If they drop to $100 consumer price they would then need to sell 9M units for the same profit, which is not going to happen.

3. If you are buying this late in a generation then you are either a laggard or replacement customer. If you are a laggard, then you won't be buying a current gen system anytime soon, so they might as well stiff you for what they can get now. If you are a replacement customer, they would prefer you to upgrade to a current gen system now and if the price spread is too great between current and last gen then they risk you staying last gen, which they don't want.

4. They will reduce last gen pricing again when they are able to produce current gen cheaper through meaningful hardware revisions. That will allow them relative pricing flexibility across both generations so they can maximize value from all segments including laggards, replacers, and mainstream new adopters.

5. They are already abusing the early adopters for this gen with relatively weak h/w upgrades and mediocre libraries.

6. The consumer decides everything in this category. Buy or don't.

Holy Odin's beard!!! Someone who understands the common factors of business. I haven't broke it down as you have so perfectly. Bottom Line? Microsoft hasn't felt the need to drop the price of the 360. When the need is greater than the stream, then they will. So many here just wont get this.

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#75 PurpleMan5000
Member since 2011 • 10531 Posts

I really just want a cheap way to own Lost Odyssey, Gears of War, the newer Halo games, Kameo, and Crackdown. $99 is pushing it, really, since I won't have online for the Halo and Gears games. Maybe those games will get released as collections on the PC at some point and I can just save the $99.

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#76 Bread_or_Decide
Member since 2007 • 29761 Posts

MY 360 died twice. The second time I was in the middle of dark souls. UGH...I'm still mad...and yeah why does it still cost so damn much?