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Pachter: Console Price Drops This Holiday
Pachter: Console Price Drops This Holiday
kotaku.com - May 20, 2008
Submitted by GoldenJackel (2045) at 3:51AM PST on May 21, 2008
Analyst Michael Pachter expects a $50 price drop will be hitting both the Playstation 3 and Xbox 360 this holiday, but that it will still be hard for the industry to match last year's extraordinary holiday sales.
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1apujanata posted on Industry News at 7:29PM PST on May 21, 2008. RE: Pachter: Console Price Drops This Holiday@vGInfidel,
I think they (Sony & Microsoft) can afford a $100 drop, but no more than that. Of course they will be losing (more) money that way, but the impact should be bigger.
Of course, taking into consideration the last gen example of GCN dropping to $99 and not getting significant long term H/W sales increase, it is still questionable whether $100 price cut for those 2 will have the long term impact I hope for. But I think it will help more, since US is in a financial crisis ATM.[ Oracle ] [ Level 30 ] [ Rank: 14935 ]bids
2vGInfidel posted on Industry News at 5:59PM PST on May 21, 2008. RE: Pachter: Console Price Drops This Holiday@apujanata,
Can MS or Sony afford to drop any more? Probably not, i could possibly see MS do it to get a bigger install base to sell more software and generate profit that way.
I cant see Sony doing it though. Dont forget that the PS3 is tied to the blu-ray market so if Sony starts slashing prices on the PS3 then it brings that entire market price down with it, which will mean a loss of potential revenue in that sector as more and more people will adopt the format, what with BR's recent victory at a higher price point, which Sony will be abandoning. Also Sony dont want to completely undercut the BR market, and have BR become the prime reason people are buying PS3's as they lose money on the console anyway and will struggle to recoup it from BR sales unlike software.[ Oracle ] [ Level 22 ] [ Rank: 150 ]bids
1apujanata posted on Industry News at 5:46PM PST on May 21, 2008. RE: Pachter: Console Price Drops This Holiday@GoldenJackel,
Is the 50$ price drop significant enough, that it can boost PS3 and X360 H/W sales ? I don't think it will.
I have high hopes that Wii might help industry to match last year's extraordinary holiday sales. Especially since in April 08, the Wii factor enabled the industry to maintain YOY growth.[ Oracle ] [ Level 30 ] [ Rank: 14935 ]bids
21GoldenJackel posted on Industry News at 3:51AM PST on May 21, 2008. Article: Pachter: Console Price Drops This Holiday
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I don't see either Sony or Microsoft doing a $100 drop this year as they are companies and they need to make money. A $50 drop would be effective enough to spur a bit higher sales this holiday and they could hold off on another $50 until next year.
It's not only the U.S. that has a financial problem as globalization makes the financial problem most of the corners of the world.