360 and PS3 price drops this year..?

Cygnus · 01-08-2007, 06:47 PM

I don't see how sony can afford to drop PS3 price this year, especially with so few shipped. I can see 360 price dropped. Let me play the "analyst" role here. Assuming the 360 v2 rumor is true. I expect 360 20GB price to drop to $299 and the new 360 Pro (e.g. 100GB) to cost $399. The Core will get phased out. M$ needs 360s with hard drives to push their movie download biz. Your thoughts?

http://www.gamespot.com/news/6163838...tories;title;2
Analysts bet on 360 price cut
Microsoft decision could lead to extending lead in race to capture market share; $100 reduction not unthinkable, says one.

LAS VEGAS--This Nevada town, where betting and speculation are the norm, is an appropriate place for talk of a price cut to the Xbox 360 to find traction.

Yesterday, two analysts--Michael Goodman and Colin Sebastian--spoke of a possible announcement from Microsoft. Goodman, of the Yankee Group, went so far as to consider a $100 price drop for the one-year-old-plus console--a doubling of the traditional $50 reduction. A third, Wedbush Morgan's Michael Pachter, offered his opinion as well, which, not surprisingly, contradicts Goodman's and Sebastian's.

In a morning note to investors, Lazard Capital Markets analyst Colin Sebastian hedged his bets, declining to speculate on an exact figure a price cut could take, but he did introduce the topic.

Pegging his theory on the dual combination of greater production efficiencies and component cost reductions for the console, as well as a shift of the platform to a more mass-market consumer audience, he said a price drop in 2007 was a "possibility."

"At CES, Microsoft is introducing several new services and updates for the Xbox 360 aimed at broadening the content available over the platform beyond video games...specifically, Microsoft is now positioning the Xbox 360 as a media hub and set-top box for the living room, linking broadband connectivity and the Xbox Live service with providers of traditional media content through Internet protocol television (IPTV)."

Goodman put a few more chips on the table, telling GameSpot he was looking at the March-June time frame as fertile ground for a price drop--and that if Microsoft really wanted to disrupt the console playing field, it would slash the price by $100.

"It's a market share battle," Goodman said. The $100 cut in price is what Microsoft would do "if [it] wants to be super competitive--put Sony against the wall and put competitive pressure on the Wii."

Pachter scoffed at talk of a preemptive Microsoft price drop. The rationale? Greed.

"Microsoft will not cut price below its cost of production," Pachter said. He posits that the 360 currently costs Microsoft $359 to produce, so "why not enjoy a $50 profit per box," he said. In addition, assuming a price drop, Pachter still saw little upside: "I'm not convinced a $300 [price point] will spike demand."

But it was on philosophical grounds that Pachter based his reluctance to join the price-cut chorus. "Microsoft is not in the business of wealth transfers to the consumer...they don't give anything away." He also doesn't see Microsoft playing the role of a price leader; rather, he sees the company as a follower in the marketplace, or a price taker, in conventional business-development lingo.

"Sony isn't prepared [to drop the price of the PS3] until summer," Pachter said. And with no Electronic Entertainment Expo in May to use as a platform for news, there isn't the usual incentive to target such drama (a price drop) in late spring--it can wait, according to Pachter. Wait until Sony does drop the price, he says, and then watch out. "Microsoft will follow, eight seconds later."

And when will Sony deliver a lower-priced PS3? Maybe it was the setting that got to him: "A Sony price drop?" Pachter pondered. "July 11. mark that day down in your calendar."

ViperVenom18 · 01-08-2007, 06:54 PM

You're analysis is exactly what I would think they would do.

However on the subject of when... I would suspect that Microsoft would drop the price just before or on Halo 3's launch area... that would be total pwnage right there. lmfao

EddieDZ · 01-08-2007, 07:00 PM

this would be awesome!.

Quote:

I don't see how sony can afford to drop PS3 price this year, especially with so few shipped.

redirect to > US PS3 shipments hit 1m mark (and afew other online websites)

the PS3 shipped and sold 1million PS3's in North America from Nov 17th thru Dec 31st making it sony's faster selling console outbeating the PS2 in terms of selling 1 million in a 6week period in north amercia, so no the PS3 and sony "havent shipped so few". Also the 360 DID NOT sell 1.5million in north amercia from its launch date to dec 31st 2005. http://www.ps3news.ca/01072007/23/it..._tops_xbox_360 (yea i know its a PS3news.ca website but it was the faster source i found for now). the 360 only shipped and sold 600,000 in north amercia from its launch date thru the second week of january 2006!. so the PS3 has also topped the 360 initial launch sales, no wonder the 360 was practically impossible to find.. they didnt ship that many.

Cygnus · 01-08-2007, 07:02 PM

I see it happening in june/july, eg. when 360 V2 will be released. I expect them to announce it during E3. While E3 ain't big like it was in the past, the media will still be covering it alot. That way 360 to get increased sales due to price drop, and later on during Halo 3 launch.

EddieDZ · 01-08-2007, 07:04 PM

but isnt the "360 v2" just a rumor? or did MS officially announce something about it? as far as i know its still only a rumor...

Cygnus · 01-08-2007, 07:09 PM

Big deal...1 million shipped, while Wii has shipped about 3 times as many. Besides, sony invested billions on PS3, blu-ray, Cell, etc technology. One million PS3 sales does not come close to making up for that loss in investment, esp since sony already loses $300 on each PS3 sold. Thus I doubt there will be a PS3 price drop this year, because PS3 parts will still be costly. Now the time is ripe for a 360 price drop, with over 10 million sales, component parts are cheaper, using a cheaper and cooler running processor etc. Now of course this is ignoring the greed factor of M$

Regarding PS3 shipments by the end of 2006, 360 had 1.5 million shipped worldwide by the end of 2005.

Quote:

Originally Posted by EddieDZ

redirect to > US PS3 shipments hit 1m mark (and afew other online websites)

the PS3 shipped and sold 1million PS3's in North America

Cygnus · 01-08-2007, 07:13 PM

Its a rumor; thus I prefaced it with "Assuming the 360 v2 rumor is true." Now if the rumor is false, I see a possible $100 price drop on Core and Premium. A cheaper Core will make it cheaper than the Wii. But with M$'s big plans for movie download, IPTV, etc, a bigger hard drive will be needed. Thus I can see the rumor of a 360 v2 being true.

Quote:

Originally Posted by EddieDZ

but isnt the "360 v2" just a rumor? or did MS officially announce something about it? as far as i know its still only a rumor...

-=CC=- · 01-08-2007, 10:25 PM

My guess is MS will have a 100$ price drop just in time for the europe PS3 launch in march. That would help sell systems over the summer and then halo3 will drop in time for x-mas 07. With both a price drop and halo3 MS wont need to worry about sales in 07 at all. They will sale themselves.

junehhan · 01-08-2007, 10:50 PM

Quote:

Originally Posted by -=CC=-

My guess is MS will have a 100$ price drop just in time for the europe PS3 launch in march. That would help sell systems over the summer and then halo3 will drop in time for x-mas 07. With both a price drop and halo3 MS wont need to worry about sales in 07 at all. They will sale themselves.

That's also what I was thinking. What better way could you spoil Sony's PS3 launch!

Cygnus · 01-08-2007, 10:55 PM

Thats assuming PS3 is even launched in March

junehhan · 01-08-2007, 11:06 PM

Quote:

Originally Posted by Cygnus

Thats assuming PS3 is even launched in March

The way that they are starting to pile up on retail shelves, I don't think that's going to be a problem

Gideon · 01-09-2007, 01:35 AM

Here, this will make you laugh...

Went to Gamestop again tonight, walked up to the PS3's that have been sitting there (yes there is dust on them-going on two weeks for most of them, and 3 weeks for 2 others). The store manager has decided to put big stickers on them that says "BUY ME." I kinda chuckled and said it was a sad sight. He then told me that "we just cant sell them" and thats when we both agreed that the system is just too expensive. He said most of the kids asking questions, or showing interest have NO IDEA what Blu Ray is.

EddieDZ · 01-09-2007, 09:44 AM

Quote:

Originally Posted by Gideon

Here, this will make you laugh...

and thats when we both agreed that the system is just too expensive. most of the kids asking questions, or showing interest have NO IDEA what Blu Ray is.

and this is new news to you??

joba78 · 01-09-2007, 09:53 AM

A price drop will have to be timed perfectly for the X360. I see this happening around the 2007 holiday shopping season coinciding with the Halo 3 launch, larger HDD, and the IPTV rollout. MS is looking to knockout the competition this holiday season! Looks possible so far.

Cygnus · 01-09-2007, 11:41 AM

Well I guess its news to sony at least

Quote:

Originally Posted by EddieDZ

and this is new news to you??

01-08-2007, 06:47 PM	#1
Cygnus The Bringer of Balance Join Date: Dec 2004 Posts: 6,832	360 and PS3 price drops this year..? I don't see how sony can afford to drop PS3 price this year, especially with so few shipped. I can see 360 price dropped. Let me play the "analyst" role here. Assuming the 360 v2 rumor is true. I expect 360 20GB price to drop to $299 and the new 360 Pro (e.g. 100GB) to cost $399. The Core will get phased out. M$ needs 360s with hard drives to push their movie download biz. Your thoughts? http://www.gamespot.com/news/6163838...tories;title;2 Analysts bet on 360 price cut Microsoft decision could lead to extending lead in race to capture market share; $100 reduction not unthinkable, says one. LAS VEGAS--This Nevada town, where betting and speculation are the norm, is an appropriate place for talk of a price cut to the Xbox 360 to find traction. Yesterday, two analysts--Michael Goodman and Colin Sebastian--spoke of a possible announcement from Microsoft. Goodman, of the Yankee Group, went so far as to consider a $100 price drop for the one-year-old-plus console--a doubling of the traditional $50 reduction. A third, Wedbush Morgan's Michael Pachter, offered his opinion as well, which, not surprisingly, contradicts Goodman's and Sebastian's. In a morning note to investors, Lazard Capital Markets analyst Colin Sebastian hedged his bets, declining to speculate on an exact figure a price cut could take, but he did introduce the topic. Pegging his theory on the dual combination of greater production efficiencies and component cost reductions for the console, as well as a shift of the platform to a more mass-market consumer audience, he said a price drop in 2007 was a "possibility." "At CES, Microsoft is introducing several new services and updates for the Xbox 360 aimed at broadening the content available over the platform beyond video games...specifically, Microsoft is now positioning the Xbox 360 as a media hub and set-top box for the living room, linking broadband connectivity and the Xbox Live service with providers of traditional media content through Internet protocol television (IPTV)." Goodman put a few more chips on the table, telling GameSpot he was looking at the March-June time frame as fertile ground for a price drop--and that if Microsoft really wanted to disrupt the console playing field, it would slash the price by $100. "It's a market share battle," Goodman said. The $100 cut in price is what Microsoft would do "if [it] wants to be super competitive--put Sony against the wall and put competitive pressure on the Wii." Pachter scoffed at talk of a preemptive Microsoft price drop. The rationale? Greed. "Microsoft will not cut price below its cost of production," Pachter said. He posits that the 360 currently costs Microsoft $359 to produce, so "why not enjoy a $50 profit per box," he said. In addition, assuming a price drop, Pachter still saw little upside: "I'm not convinced a $300 [price point] will spike demand." But it was on philosophical grounds that Pachter based his reluctance to join the price-cut chorus. "Microsoft is not in the business of wealth transfers to the consumer...they don't give anything away." He also doesn't see Microsoft playing the role of a price leader; rather, he sees the company as a follower in the marketplace, or a price taker, in conventional business-development lingo. "Sony isn't prepared [to drop the price of the PS3] until summer," Pachter said. And with no Electronic Entertainment Expo in May to use as a platform for news, there isn't the usual incentive to target such drama (a price drop) in late spring--it can wait, according to Pachter. Wait until Sony does drop the price, he says, and then watch out. "Microsoft will follow, eight seconds later." And when will Sony deliver a lower-priced PS3? Maybe it was the setting that got to him: "A Sony price drop?" Pachter pondered. "July 11. mark that day down in your calendar." __________________ Toshiba 57H81 Kenwood VR-616 Comcast DCT6412 III XBox 360 GamerTag Sec0nd2N0n3

01-08-2007, 06:54 PM	#2
ViperVenom18 High Definition is the definition of life. Join Date: Feb 2006 Posts: 641	You're analysis is exactly what I would think they would do. However on the subject of when... I would suspect that Microsoft would drop the price just before or on Halo 3's launch area... that would be total pwnage right there. lmfao __________________ -Sony 34in HDTV - KD--34XS955 -Denon AVR-3300 -Denon DVD-1000 -Definitive Tech. BP 2004tl Bipolar towers w/ built in 10in subs. -Definitive Tech. BP2X Bipolar surrounds -Definitive Tech. C/L/R 2300 center channel with built in 8 inch subwoofer. -DIY 15 inch TC-2000 subwoofer tuned to 20hz with 1200 watt amp rms. -Xbox 360 (Gamertag: C Dimension) Soon to come: Nintendo Wii.

01-08-2007, 07:02 PM	#4
Cygnus The Bringer of Balance Join Date: Dec 2004 Posts: 6,832	I see it happening in june/july, eg. when 360 V2 will be released. I expect them to announce it during E3. While E3 ain't big like it was in the past, the media will still be covering it alot. That way 360 to get increased sales due to price drop, and later on during Halo 3 launch. __________________ Toshiba 57H81 Kenwood VR-616 Comcast DCT6412 III XBox 360 GamerTag Sec0nd2N0n3

01-08-2007, 07:04 PM	#5
EddieDZ PSN is Free Join Date: Jan 2006 Location: Saint John, NB Canada Posts: 4,707	but isnt the "360 v2" just a rumor? or did MS officially announce something about it? as far as i know its still only a rumor... __________________ Uncharted 2 l GRID l Killzone 2 l Battlefield:BC l BuzzQuiz l Pacific Rift l Dead Space l Burnout l Motorstorm l R&CF l Uncharted Fat Princess l Shatter l Zen Pinball l PJ Monsters l PJ Eden l Astro Tripper l Zuma l Soldner-X l Cuboid l Prince Persia l PowerUp l Magic Ball l WipeOut HD l R&CF: Quest Booty l Fatal Inertia l Stardust HD l flOW l Blast Factor AR l Nucleus l Everyday Shooter Samsung LN46A530

01-08-2007, 10:55 PM	#10
Cygnus The Bringer of Balance Join Date: Dec 2004 Posts: 6,832	Thats assuming PS3 is even launched in March __________________ Toshiba 57H81 Kenwood VR-616 Comcast DCT6412 III XBox 360 GamerTag Sec0nd2N0n3

01-08-2007, 10:25 PM	#8
-=CC=- High Definition is the definition of life. Join Date: Mar 2006 Posts: 100	My guess is MS will have a 100$ price drop just in time for the europe PS3 launch in march. That would help sell systems over the summer and then halo3 will drop in time for x-mas 07. With both a price drop and halo3 MS wont need to worry about sales in 07 at all. They will sale themselves.

01-09-2007, 01:35 AM	#12
Gideon High Definition: euphoria Join Date: Sep 2006 Location: Somewhere between earth and hell... Posts: 880	Here, this will make you laugh... Went to Gamestop again tonight, walked up to the PS3's that have been sitting there (yes there is dust on them-going on two weeks for most of them, and 3 weeks for 2 others). The store manager has decided to put big stickers on them that says "BUY ME." I kinda chuckled and said it was a sad sight. He then told me that "we just cant sell them" and thats when we both agreed that the system is just too expensive. He said most of the kids asking questions, or showing interest have NO IDEA what Blu Ray is.

01-09-2007, 09:53 AM	#14
joba78 Put some LCD's on that B! Join Date: Nov 2006 Posts: 187	A price drop will have to be timed perfectly for the X360. I see this happening around the 2007 holiday shopping season coinciding with the Halo 3 launch, larger HDD, and the IPTV rollout. MS is looking to knockout the competition this holiday season! Looks possible so far. __________________ Samsung 40" LCD LNS4092D - Wall Mounted Motorola DCT3412 via HDMI Comcast HD Cable Xbox 360 w "Black Knight" case mod AIWA 5.1 ch Surround GamerTag: joba78

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