Hello gamers,
I was looking at some news on IGN about a possible price cut for the 360. According to the rumor, "The forums at High-Def Digest have gotten their hands on an image that appears to reveal an impending price cut for the Xbox 360. Currently priced at $349.99 (the SKU with a 20 GB hard drive, headset, and HDMI output) the advertisement suggests a 50 dollar price cut to $299.99." So, does that mean that more people can buy it? From my personal experience, I've had to pay over $100 for my 360. If you want online, you're going to have to spend some more money. It's not like I'm saying that you're going to spend that much (because I had to buy a wireless adapter), but you for sure are going to be paying more than just your system.
Also, what about Microsoft? If they make the system cheaper, that means that they're going to be losing more money because the system itself takes more than $300 to make. There was also rumor that the PS3 was going to lower it's price to $299, but that seems to be a myth. If SONY truly did that, they would be cutting their own throats.
Just remember this is a rumor and doesn't mean that Microsoft will cut the price. As they told IGN, "We don't comment on rumors or speculation".
Well, that's all for now,
HANG TIGHT GAMERS!!
I was looking at some news on IGN about a possible price cut for the 360. According to the rumor, "The forums at High-Def Digest have gotten their hands on an image that appears to reveal an impending price cut for the Xbox 360. Currently priced at $349.99 (the SKU with a 20 GB hard drive, headset, and HDMI output) the advertisement suggests a 50 dollar price cut to $299.99." So, does that mean that more people can buy it? From my personal experience, I've had to pay over $100 for my 360. If you want online, you're going to have to spend some more money. It's not like I'm saying that you're going to spend that much (because I had to buy a wireless adapter), but you for sure are going to be paying more than just your system.
Also, what about Microsoft? If they make the system cheaper, that means that they're going to be losing more money because the system itself takes more than $300 to make. There was also rumor that the PS3 was going to lower it's price to $299, but that seems to be a myth. If SONY truly did that, they would be cutting their own throats.
Just remember this is a rumor and doesn't mean that Microsoft will cut the price. As they told IGN, "We don't comment on rumors or speculation".
Well, that's all for now,
HANG TIGHT GAMERS!!
P.S.: After looking at some of the comments, I wanted to inform you all that the 360 takes about $715 to make, not $300. (http://www.joystiq.com/2005/12/28/xbox-360-costs-715-to-make/)
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14 Awesome Comments:
a actually consider buying one
sorry my keyboard broke, i said if the price goes down, i may actually consider buying one
A price-cut is good for the consumer, bad for the company. Sure, they'll probably get more sales, but they'll be lossing more and more money.
meh, a portion of the money goes to the store and the rest to the company. the fact is, xbox 360s dont actually cost 499 dollars or whatever, they are probably about 100 dollars to make, then to turn any sort of a profit, they have to raise the overall price. so, they wont be losing money, but they will make significantly less.
(is it just me or did i become an expert in marketing overnight?)
kind of unrelated, but shouldn't this post have a "vgc news" Title on the top?
oh wait, i didnt read your post thoroughly, 300 to make... that makes a difference
are you sure its 300 though? that sounds a bit high
It's actually about $700 to make a 360 console
http://www.joystiq.com/2005/12/28/xbox-360-costs-715-to-make/
That's why Microsoft is losing so much money.
Yes, it probably should have "VGC! News" title.
So, as you can see, cutting the price is a really bad idea for Microsoft. With the Wii, though, I believe Nintendo is making MORE money with each system instead of losing some.
http://www.mywii.com.au/NewsDetail.aspx?id=153
Losing a little money on the systems doesn't matter to them. They make more money from the games. The more people buy systems, the more games they will sell. A loss of $400 on a system is nothing to them. Each game they sell is $50 or $60, and not a whole lot less for the older ones. If each person who buys the underpriced system gets maybe six or seven new games, Microsoft still comes out ahead.
That's a good point Kingjames13, but it has a few flaws.
First, it takes WAY more money to make a game than what the company is asking the consumer. It's estimated around 4 million bucks to make the game.
Second, the company would have to sell at least 80,000 copies of the game to even come close to what it took to make the game.
Third, the company is going to have to pay even more if they want to put it on shelves. Doesn't Gamestop or EB Games want some of the profit?
http://explore.digipen.edu/index.php?id=510
i agree with king james, not all games would cost 4 million bucks, and if each game is 50 - 60 dollars and its popular like halo is, 60 x 1.7 million (preorders alone).
well you do the math because i am too lazy, but its a lot of money. im not saying that every game makes this kind of cash, but if you average it out you get a lot of money coming in. plus they get money from xbox live and all the xbox attachments.
i agree with spacepiratefear, Microsoft get a lot of money coming in with all the x box stuff, a price cut would not cause them much money loss.
By the way, make another post!
But that's saying that every Xbox game they make will sell over 80,000, which most won't. Most Xbox owners buy very little games because they find that they find a lot of replay value out of that game.
Lets say that one guy buys a 360 and 15 games and another guy buys a Wii and 15 games.
The Wii costs about $200 to make and Nintendo puts the price at $250. Their games are $50 each (new)
The 360 costs about $715 to make and they price it at about $300. Thier games are $60 (new)
Nintendo will gain $50 from thier console and $750 for the 15 games. A total of $800 they will make from that gamer.
Microsoft will lose about $415 but gain about $900 from games. However, that only gives them $485 which is a differance of $315 when compared to the Wii.
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