Archived from groups: alt.games.video.sony-playstation2,alt.games.video.xbox (More info?)
Imagine for a moment that you're an Xbox executive (insert joke here about
poor fashion sense).
Your last console took a serious bite out of Sony's dominant marketshare and
surpassed Nintendo - but you are still a distant second.
The launch of the Xbox 360 - arguably - is a make or break moment. One of
the key decisions before you is this: How much do you charge for the next
system?
I'm interested in what others here think - AND WHY.
Example:
The Xbox 360 should cost $299 for three reasons:
1) Xbox 360 Needs a Strong Launch
2) The Console Marketplace is already very Crowded
3) Sony Would Have More to Lose in a Price War
First, Xbox 360 needs a strong launch and will thus need to be priced
aggressively. If launch sales are weak, bad word of mouth will spread
quickly - "users saw no reason to upgrade;" "hardly a difference in
graphics;" "consumers are waiting to see what the other options are" - and
Xbox could see itself going the way of the other well-designed, but
ill-launched and poorly priced consoles before it. On the other hand, a
strong launch, just before the holiday season, could make Xbox the "it" item
of the season.
Aside from needing a strong launch, Xbox should recognize that this is an
incredibly crowded market. Many console owners don't feel the *need* to
upgrade. All three consoles are still churning out graphically-impressive,
great-gaming titles, witness PS2's God of War, Xbox's Halo 2, Chaos Theory
and Jade Empire and Gamecube's upcoming Zelda. While gamers will eventually
make the switch to a new system, the question is if they don't feel they
need to make the switch NOW then what will entice them? The answer is price.
Lastly, it's a strong strategic move against Sony. Sony invested a lot of
money in its partnership with IBM to come up with a "revolutionary" new
chip. Unfortunately for them, after all that R&D, their console turned out
to be the same speed as the Xbox 360 with less memory, leaving them to talk
about potential teraflops. Sony needs to pay for that investment and so
rumor has it that Sony wants to price their console at launch at possibly
$499.
Put simply, the last thing Sony wants right now is a continued price war
with Xbox. They need to recover their R&D costs somehow.
Imagine for a moment that you're an Xbox executive (insert joke here about
poor fashion sense).
Your last console took a serious bite out of Sony's dominant marketshare and
surpassed Nintendo - but you are still a distant second.
The launch of the Xbox 360 - arguably - is a make or break moment. One of
the key decisions before you is this: How much do you charge for the next
system?
I'm interested in what others here think - AND WHY.
Example:
The Xbox 360 should cost $299 for three reasons:
1) Xbox 360 Needs a Strong Launch
2) The Console Marketplace is already very Crowded
3) Sony Would Have More to Lose in a Price War
First, Xbox 360 needs a strong launch and will thus need to be priced
aggressively. If launch sales are weak, bad word of mouth will spread
quickly - "users saw no reason to upgrade;" "hardly a difference in
graphics;" "consumers are waiting to see what the other options are" - and
Xbox could see itself going the way of the other well-designed, but
ill-launched and poorly priced consoles before it. On the other hand, a
strong launch, just before the holiday season, could make Xbox the "it" item
of the season.
Aside from needing a strong launch, Xbox should recognize that this is an
incredibly crowded market. Many console owners don't feel the *need* to
upgrade. All three consoles are still churning out graphically-impressive,
great-gaming titles, witness PS2's God of War, Xbox's Halo 2, Chaos Theory
and Jade Empire and Gamecube's upcoming Zelda. While gamers will eventually
make the switch to a new system, the question is if they don't feel they
need to make the switch NOW then what will entice them? The answer is price.
Lastly, it's a strong strategic move against Sony. Sony invested a lot of
money in its partnership with IBM to come up with a "revolutionary" new
chip. Unfortunately for them, after all that R&D, their console turned out
to be the same speed as the Xbox 360 with less memory, leaving them to talk
about potential teraflops. Sony needs to pay for that investment and so
rumor has it that Sony wants to price their console at launch at possibly
$499.
Put simply, the last thing Sony wants right now is a continued price war
with Xbox. They need to recover their R&D costs somehow.