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PLAYSTATION 3 (PS3)
360 Price Cuts Did Not Hinder PS3 Sales
360 Price Cuts Did Not Hinder PS3 Sales
Gamasutra - October 20, 2008
Submitted by Animate (241) at 7:24PM PST on October 20, 2008
Our data indicates, however, that a price cut from either system plays a minimal role in affecting the others' sales, with the most recent example being the September 2008 price cut by Microsoft. While Xbox 360 weekly sales jumped by 42 percent, it played no role in hindering PlayStation 3 sales, which actually saw a small (.1 percent) increase.
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1welshbloke posted on PLAYSTATION 3 (PS3) at 5:34AM PST on October 21, 2008. RE: 360 Price Cuts Did Not Hinder PS3 Sales@kspraydad,
Agreed, what will be interesting from a Microsoft perspective is if they have managed to push this demand out significantly by lauching this multiple phased marketing attack on the competition.
Of course not all this effort is directed at the PS3 should we not see some dip for the Wii as MS claim to have seen significant uptake for the Arcade.
It will as ever be an interesting Xmas period, as I am sure Sony and Nintendo have something to give before the dust settles (maybe not so much for Nintendo except maybe lots more Wii to the channel).[ Oracle ] [ Level 30 ] [ Rank: 60 ]bids
3kspraydad posted on PLAYSTATION 3 (PS3) at 5:12AM PST on October 21, 2008. RE: 360 Price Cuts Did Not Hinder PS3 Sales@welshbloke,
I remember writing an article for SPG last year when PS3 dropped its price. I argued that price cuts merely shift demand forward in time but not away from the competition.
Jesse seems to be supporting this argument.
[ Oracle ] [ Level 21 ] [ Rank: 475 ]bids
1welshbloke posted on PLAYSTATION 3 (PS3) at 4:48AM PST on October 21, 2008. RE: 360 Price Cuts Did Not Hinder PS3 SalesI agree with Joe80, but in addition what I find interesting with this price is the timing, the new releases, huge marketing, lots of bundles and even free games and the update with the cute new dashboard.
The price cut on its own may only have halted the PS3 sales but if we start combining the above it is likely to have a greater impact and with all the additional activity it will not be possible to attribute sales growth for the 360 for example to the price cut alone.
What we should see if the trend continues in the upward direction is the PS3 flatlining which will be an indication that something was working even if it was not the Price cut on its own.[ Oracle ] [ Level 30 ] [ Rank: 60 ]bids
1Animate posted on PLAYSTATION 3 (PS3) at 7:27PM PST on October 20, 2008. RE: 360 Price Cuts Did Not Hinder PS3 Sales@Joe80,
And the same happened when PS3 got a price cut:
"In the same respect, looking back to last year, the PlayStation 3 had a 100 percent increase in weekly sales following its July 2007 price cut, but was of no nuisance to the Xbox 360, which achieved a 7 percent gain in the same month."
"While it is tough to conclude using only a few data sets, both situations show an emerging trend -- a price cut for one system does not hinder sales of the competition.
While I still maintain my original analysis that the current PlayStation 3 price point is too steep to spur sales this holiday season, it may not affect its overall potential install base in the end.
In other words, those potential PlayStation 3 owners who are turned off by the current high price point may just delay their purchase until prices come down, instead of buying the cheaper Xbox 360."
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I am not sure if I agree, for instance despite sales not appearing to be negatively affected, what if sales of PS3 or 360 would've gone up even higher if the other did not get a pricecut...[ Oracle ] [ Level 26 ] [ Rank: 241 ]bids
16Animate posted on PLAYSTATION 3 (PS3) at 7:24PM PST on October 20, 2008. Article: 360 Price Cuts Did Not Hinder PS3 SalesOur data indicates, however, that a price cut from either system plays a minimal role in affecting the others' sales, with the most recent example being the September 2008 price cut by Microsoft. While Xbox 360 weekly sales jumped by 42 percent, it played no role in hindering PlayStation 3 sales, which actually saw a small (.1 percent) increase.[ Oracle ] [ Level 26 ] [ Rank: 241 ]
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put that way i find that to be a fascinating theory indeed: and thinking about it a bit more makes me wonder:does this mean that a system (360 in this case) could drain it's userbase in advance thereby reducing it's potential in the later stages of it's lifecycle or shortening that? hard to measure the theory considering the snowball effect of the more there are the more it gets recomended, speciffically in a market that has a lot of growth left until every household has a console worldwide.