2 years ago#182
I'm still not getting the logic here. By this logic, the PS3 should apparently still be priced at $600 and still be sitting on shelves collecting dust? Or, wait, did they drop the price, start selling bundles and watch the sales of their product start doing better? I'm confused, how is a price drop bad for a consumer, and how is a company using tactics to sell more of their products bad? At this point, both companies should be doing everything they can to push their next gen consoles. They are both readily available on Amazon and I see them on the shelves whenever I go to stores that sell gaming consoles. Lots of people are still perfectly happy with their PS3's and 360's (or PC) and the list of upcoming exclusives really doesn't look rosey for either "next gen" console. Sure, there are games out there, but when? The dates keep sliding and it's now looking like another year or 2 until things really start to pick up.
The logic is that companies only drop prices when they HAVE to. The PS3 price drop was FORCED on Sony so that WAS bad for them. However even then, they dropped the price A YEAR LATER, not less than half a year. Gaming publishers themselves publicly stated that they would withdraw support if they didn't drop the price and sales of the PS3 were MUCH behind what was needed on nearly all levels so they took a further loss by dropping the price to build an install base and to make it up with accessory and software sales (their original plan at the original price point anyway). PS3's price drop is probably what saved for going under entirely. Sega Saturn could have used that (and games outside Japan).
Do you think ANY company is going to sell something at a price lower than they would have to if their sales never changed regardless of price? If that were the case, then they'd RAISE them. Again look at cable that ONLY does that.
But, how are you not seeing the point unless you're blatantly ignoring it. If a company has to drop a price within a few months as opposed to a year that means things aren't going so hot. If they have a competitor who doesn't have to drop their price or make comparable bundles and STILL outsell them by major numbers most the time then it's even worse.
Price drops and sales are not a general situation due to various reasons why they are put into place. That should be VERY simple to grasp, if not study some business and pay close attention. Microsoft is doing it extremely early and only after their sales not only fell much behind expectations but was HEAVILY succeeded by their competition that they have stated they want to outdo. This price drop was never planned or expected to come so soon from them or anyone. It didn't even get in a major advance announcement which is what companies do to make people aware. It just suddenly popped out of no where and said it'll be here in a week or two. So yes, the price drop for MS happened BECAUSE things were bad hence why the price drop was seen as negative for THEM. A price drop itself is NEVER bad for the consumer though because that's less money WE have to spend.
It would be a lot different if this price drop came a year later as that's generally the trend FOR EVERYONE, but it came less than a half year breaking the trend because wait for it, they aren't selling well enough for their forecasts. Shareholers wont be happy, especially for a division that has been CONSIDERED to be put up for sale and was rarely if at all ever financially successful for them.
This is GameFAQs. People here take great pride in ignoring common sense.
2 years ago#183
So xbox drops the price by $50 and PS4 puts the price up $50.
2 years ago#184
It's a genius strategy for Microsoft. Price drop gets people talking about the console and Microsoft knows those early numbers in a console war are very important because developers closely watch that stuff to see who the want to sell their exclusives to. Then you get Titan Fall also which is a multiplayer game which indoctrinates you into their online community which is pretty much hook, line and sinker.
It's a great move from a business prospective. lol gamefaqs!
2 years ago#185
Microsoft realizes Sony is giving them more stiff competition from last cycle and they are adapting and quick. It happens in business, no one is impervious to it. The important thing is knowing what to do next.
2 years ago#186
Tyronelio1 posted...Omega_Black posted...ChrisObama posted...Its too early in the console life cycle with them bundling one of their biggest game this year, with the price cuts here and in the uk. It seems very desperate.Indeed. I'm guessing that 3 to 1 margin in PS4's favor is rightly rattling Microsoft's confidence.
I am disappointed in you Ace. Look at the "mathemagics" in this post and no comment on it from you other than some lame bet!
2 years ago#187
So xbox drops the price by $50 and PS4 puts the price up $50.
2 years ago#188
Honestly, you're pretty much proving my point. They are being proactive. Rather than sit around and wait for third parties to threaten like you said with the PS3, they're taking 50 bucks off the price and putting consoles in peoples' homes. Would it be better for MS to not have a price reduction? Sure. Would it be better to sit there and do nothing and hope for things to get better? Doubtful. This is 100% on MS, they could drop Kinect and put it out for $399. They're choosing to keep the mandatory Kinect and eat some money. They clearly feel that Kinect is (or more likely will be) a big selling point. Also, MS is cash rich so they can afford to lose some money and try to make it up on peripherals like charge kits, headsets, controllers etc.
So really, what is your point that I'm not getting? Because mine is that it's better to sell units at a reduced cost than to NOT sell units at a higher cost. Then, you've got a shot at making up some money with all the extras. I get the fact that it's early in the life cycle, but as I stated they appear to be attacking this proactively rather than waiting around. On top of that, they're trying to strike while the Titanfall hype train is still rolling. I don't think you're getting it.
2 years ago#189
If this is considered a desperate move, then what would you say if Microsoft raised the price $50?
2 years ago#190
AceAndJunpei posted...Tyronelio1 posted...Omega_Black posted...ChrisObama posted...Its too early in the console life cycle with them bundling one of their biggest game this year, with the price cuts here and in the uk. It seems very desperate.Indeed. I'm guessing that 3 to 1 margin in PS4's favor is rightly rattling Microsoft's confidence.
I'm immune to mathemagics now:(
Sailor Goon broke me!
Now Playing: MGS5 Ground Zeroes, Second Son (PS4), DKTF (WiiU), Lords of Shadow 2 (PS3), Yaiba: Ninja Gaiden Z (PC)
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