PS2 Price May Fall, Gamecube Staying Put
mrquackers writes: "Looks like the price war in the console gaming world is starting a bit early. With Microsoft expected to announce a drop in the price of the Xbox to $199 next Monday at E3, Sony's rumored to be cutting PlayStation 2 prices as early as tomorrow. Meanwhile, Nintendo says it won't be making ANY price cuts before or during the show -- though it's not ruling one out for later in the year." Update: 05/14 18:01 GMT by T : An anonymous reader points out this CNN story indicating that the PS2 cut is official.
http://www.gamers.com/news/1147215
:)
Even the PS One is getting a price cut to $50
Are that the ethernet and 56k modem adaptors will be sold for just $34.95 each. Nintendo were looking as thought they weren't going to bring these out previously so this is damn good news - finally PSO without loads of hacked-up charecters (hopefully...)
Blaming GW Bush for the Iraq war is like blaming Ronald McDonald for the poor quality of food.
You know I think this hails the begining of the end for microsoft.
No matter how big you are you just cannot indefinately lose hundreds of dollars on consoles.
Anyone with any idea of market forces will be able to confirm this. Esspecially when you are trying to "break into" the market and you dont have a wide base of customers like sony do.
Mind you consumers are gaining in the meantime so whos complaining
The Borg assimilated my race & all I got was this lousy T-shirt
GTA3 changed all that. Well, that and FFX. These two games have kept me up many a night pondering whether or not to indulge my fantasies and purchase a PS2. But, to be perfectly honest, $299 is not in my price range right now.
I'd have to say that if Sony even lowered the price of the PS2 to $199 to become more competitive with the Gamecube, I'd probably pick one up in a second. I've been waiting for GTA3 to come out to the PC for what seems like ages, and the opportunity for instant gratification would be irresistable. All I can say is, Sony, please lower the price and spare me the agony of waiting another month of agony waiting for GTA3!
I just bought one yesterday. ARGH!
I hate those losers who can't come up with a decent sig. Oh, wait...
wicked.
It really doesn't matter about matching or costing less than a competitors console. If its reasonably priced, and it has figurehead games and a reasonable fan base, it will go well. Pros and Cons: P2 - Its older, but thats not necessarily a hard thing. Its got crap all RAM, and its hard to program for, but its still got more support than the X-Box. It has good titles, the FF series, and a good controller. X-Box - Its a great console, but no matter how much it costs, if its got no figurehead titles, it won't sell. And it doesn't. Halo is ok, but thats all that's even made me look twice. Im writing it off already, due to no games coming that interest me. Gamecube - Not out here (Australia) yet, so i cannot comment. Give me PC anyday.
Think nothing is impossible? Try slamming a revolving door.
great time to pick up a spare pc for $200 considering mod chips have just been released! I bet a real OS port comes soon. Google Enigmah-X or Xtender for details.
GameCube is more for kids, whatever Nintendo tries. They do a *good* job with their consoles and the games have a longevity other consoles/games lack. Gameplay rules.
X-Box tries to appeal to PC users and 'older' kids (teens, twens).
But *that's* where the PS2 is strongest.
All Sony has to do now is bring out PS3 at the right moment. Doesn't have to be able to play PSX-Games, really. Needs PS2 compatibility and 'something new'.
they work, whereas PC games, if they even install, crash after you've got halfway through a level. This has happened to me on many machines over the last 10 years, and I don't see it stopping soon. Even the developer ads for the CD "protection" systems used by most games claim that they won't work on 5% of PCs.
I'm not sure about this, but aren't there laws against selling equipment below cost? They were usually put in place to prevent asian countries of muscling into the market by selling at a loss, but I'm fairly certain that what microsoft is doing, taking a loss of hundreds of dollars on each console, could be labeled as... hmmm, anti-competative?
Microsoft's coffers are so deep, they can keep this up for another hundred years or so....
and that's liquid assets... it would take several x-boxes a house hold to take microsoft down.
We'll at $200 plus $200 more for the linux kit i'd never leave the living room. It does come w/ a 40gig drive + keyboard + mouse + ethernet...not a bad setup. ssh to server to update website/access to the net / and just power cycle for counsle gaming!!!
LinuxWorx
Spelling errors are intentional as are gramatical error
I'm still holding out for one, since at $149 to $129 (or dare I think it: $99) I would be incredibly happy to finally get one. Besides, just because Nintendo says they won't be cutting prices, doesn't mean that it won't happen. Hell, just 6 days ago Sony was saying they wouldn't be making any price cuts at E3:
source
I've had nearly everything.. from intellivison, to atari 2600, to coleco vision, to nintendo 8 bit.. sega master, sega 16bit, nintendo 16bit.. turbo graphx(with CD), jaguar(ugh dunt remind me), to 3DO(one of my all time faves) to saturn and ps1 and PS2(love it!)....
:)
:)
Now that xbox has dropped(or will) drop to 200 range.. I'd might actually get one.. hate to say it.. since i'm personally against giving MS any of my earned cash(bla bla bla bla). But i have been impressed with some of the graphics i've seen on the xbox and it sounds like it can be a great system(has potenential)..
I guess the worst case is that I'll pay 200 bux for a 40gb IDE drive
As for Nintendo's new gamecube... its limited.. but hey its a gaming platform.. thats all.. i think i'll wait and see how good metroid will really be before i consider buying this one.
just a few honest thoughts about price drops here
Does anyone have any idea how much of a loss MS takes on every console sold?
Considering modchips and game rips have just been released, making a profit may become harder than they expected.
Kids LOVE gory stuff! I know _I_ always used to watch overly sick horror films (so called 'video nasties') when I was a kid without many ill effects. Mind you, I probably WAS a grubby lil' scrote back then.
The Resident Evil games are no worse than a copy of the Fangoria Swimsuit Special edition.
And venturing dubiously off topic, I wonder if Capcom are going to acknowledge the fact that the Gamecube controllers have ANALOGUE STICKS on them, and thus allow the gamer to immerse themselves into the game by... Pointing the stick in the direction they want to go!
If there's one thing gamers HATE about the Resident Evil games, it's the 'turn and point' method of control. It's clunky and artificial, and a throwback to games that are about a decade old. The N64 version of RE2 had the right idea, with an analogue stick option. But the Dreamcast RE games didn't have.
Funnily enough, RE2 was the only one I persevered with. I couldn't even be bothered to get out of the first room on Dreamcast RE3 because of the controls.
However, if Capcom actually include the option to use a vaguely modern control system in the Gamecube versions, I WILL buy the console just for that. Hell, the control system in Luigi's Mansion seems just right. One stick to move, one stick to aim. Sorted.
"Why did they cancel my favorite Sci-Fi show? I downloaded ALL the episodes!"
I'm no fan of MS but no one will deby that the Xbox has the best graphics of the current crop
of consoles and thats what gamers go for. The installed base of the PS2 is huge so Sony won't
be hurt but in the west I reckon this could kick Nintendos backside as frankly the GC has some
pretty damn lame games so far except for Luigis Mansion but thats only of interest if you're
15 or under IMO. The graphics in the other games are pretty woeful and I'm thinking Nintendo may
have cut one too many corners in the GC design in trying to keep the price down.
Say, aren't we supposed to boycott Sony for screwing up our iMacs?
I am NOT supporting a product of a monopolist, evil, and anti-competitive company...
So we're Sony's pals this week then?
"Why did they cancel my favorite Sci-Fi show? I downloaded ALL the episodes!"
So we're Sony's pals this week then?
:)
:)
Well according to the calendar yes..
5/12-5/18 Sony(celebrate PS2 price cuts)
5/19-5/25 Apple(celebrate rackmount servers)
5/26-6/01 PanIP(celebrate American Capitalism)
6/02-6/08 Microsoft(has to happen once a century)
6/09-6/15 Napster(company will be reborn and the same as in past but umm better)
6/16-6/22 AT&T(they realize they lose to much money and promise free phone calls for all)
6/23-6/29 TBA -- Check slashdot poll for this weeks
thats what the current calendar shows.. so be pre-pared
For that price or less you could buy a Dreamcast and, of course, run Linux or NetBSD on it.
There is even a thriving dev scene
"As consoles are sold at a loss anyway, ..." a common myth. No consoles are sold at a loss past the first few months if the company doesn't want to lose millions (look at the Saturn: Sega learned that one the hardway as the Saturn supporters didn't help them at all). Any company that doesn't recoup costs of the hardware can't be competitve on pricing of the base unit or licencing to 3rd parties.
Sony has been making money on the PS2 systems since 2-3 months after they were released. They're just dropping their markup right now. Nintendo's probably only making a few percentage points on the Gamecube right now, and it uses much newer and more proprietary components than the PS2. And it doesn't have 2 years of components being refined and made cheaper yet.
MS is probably not losing any more on the Xbox because of price drops in supplies of things like the P3.
Think about normal consumer goods: everything you see probably has a 3-5x markup. A shirt that is 100$ on the rack cost 20$ tops. A 20$ shirt on the rack cost the original supplier maybe 4$. That's why they can stay in business with low sales. But consoles need high sales at first, which is why they are at a loss or break-even for the first little while. Then manufacturing advances or supplier changes modify the base costs. This allows a company to change its strategy. With Sony, it was "make money" -- with MS it's "increase penetration." Once MS has more consoles out there, they can reap the benefits of more money from 3rd parties, which is where the real money is to be made.
--
Internet Explorer (n): Another bug -- that is, a feature that can't be turned off -- in Windows.
It's a pity that people judges consoles based on graphics. PS2, Xbox and Gamecube don't differ THAT much in terms of graphics power.
What counts to me ist the quality of the games and on this sector Nintendo was, is and allways will be the best. Just look at what really good games came out for PS2 in 2 years and compare it to what Nintendo will release 2002. I think, most of the PS2 Games are crap.
I won't even begin to talk about Xbox (lockups, price, games, controller,...).
I like this scenario:
Microsoft sells Xbox underpriced - making a loss per each sold product. Meanwhile as the modchips have already been released, Microsoft is digging another hole for themselves: they have created the perfect platform for cheap Linux based homecomputer, again, project(s) already going. Once this evolvs into a easy-to-setup Linux home computer: voila!
Summasummarum, Microsoft's bully tactics may well prove as the ultimate bullet to their own head. They will end up loosing both because of hardware and because of lost Windows license fees. Eventually, loosing around $200 because of every sold Xbox. Thanks.
Im getting pissed of now, They're doing price drops on the consoles all the time so people will buy their machines but I thought cosole gaming was about the games?!? Today its more like about the console since I can't afford to buy one console and one game. Here in sweden a GC costs around $250 and ONE game costs around $70. Xbox is similar priced and the games for the PS2 costs a little less. Now, which one is the most attractive if your looking at the price, I'd say the PS2. To bad the only good game I was looking forward to on the PS2 was MGS2, now when ive seen the game, well, its more like a movie to me :(
--- No, english is not my mother tongue.
If everyone was talking about Microsoft being crazy for selling a machine they wouldn't be able to make any money on for 7 years even if they sold a ton of games, does their having to unplannedly drop the price this early pretty much mean it's a failure?
As hesitant as everyone seems to be to officially call the XBox a failure, it seems like all I ever see are statistics about PS2 insanely outselling it. That's the opposite of normal for consoles. If the latest and greatest console can't outsell 2yo technology immediately (dont forget PS2 came out in Japan like 9mo or something earlier), then I think that has always meant quick and certain doom. I actually almost feel bad for MS - here they are actually technically way superior (the hardware) for once, and yet are unable and yet are failing in the face of extreme hype.
Of course, as much as I'm revolted by all the shady crap sony pulled with retailers preceding launch, sony's bogus "supercomputer" claims that had everyone waiting based on lies for a misdesigned heap of crap instead of buying dreamcasts for like a year before hand, and the general irritation of having the damn advertising and extravagent hype in my face everywhere I go (even like grandmothers talking about it and thinking they're cool cuz they're down with the "sony style"), nothing would actually make me feel sorry for MS.
My bet is that Microsoft, being the company it is, will learn from each and every little mistake it's made with XBox1 and come back in incredible avengence with XBox2. I don't give a rat's ass about consoles, and think 340x200 interlaced graphics are a weak alternative to a geforce 4 pc, but I know that a cornered Bill Gates is about the most vicious competitor the world has ever seen, and that he has determined that the console segment is going to be an extremely important one in the future.
MS has a history of always starting out low-key with 1.0 releases (Word 1, IE 1, Excel 1, NT 1, etc. all super weak and unpopular), but then completely taking over with subsequent releases.
I am NOT supporting a product of a monopolist, evil, and anti-competitive company
So you go and buy a Sony, who are members of both the RIAA and the MPAA. Yeah, real clever there.
I wish the companies would lower game prices, myself: $50 a pop per game on each console is pretty ridiculous.
This is all part of the MS big plan. Remember back before IE and Netscape were free? MS was trying to beat out the competition, so they sold IE at a heavy loss, to the point of giving it out for free. They knew they could support themselves indefinitely during the browser war, and that there was no way that the company would end up dying due to losses on IE. Netscape on the other hand could not take such drastic actions. They were not such a large company, and could not support themselves well at all without some revenue from Netscape sales. Eventually they were forced to give away their browser too, at the risk of losing whatever market share it still held (as well as shuffles in upper management, etc). Although I really have no proof, we can still speculate. I would imagine that even if the Xbox department ended up losing money overall (consoles + games) this time around, they would still show up for the second round with the Xbox2. MS doesn't want to lose a foot hold in the console market, it's their nature to operate in this fashion. The price cut was most likely a jab taken towards Sony's market share, why else would they be willing to drop the price $100 on something they are already losing money dearly on? The only way it makes any sense is if their goals are aimed towards market share, and not profit maximization (I doubt the price drop would be balanced by games revenue any time soon after). Sure, right now there is no way MS will be able to edge Sony out of the console market. But MS has to start somewhere right?
By your own words, no less.
Nintendo is kept solely afloat by the under 18 crowd.. As long as Pikachu and Mario don't come to the X-box or Playstation 2, Nintendo has nothing to worry about.
http://biz.yahoo.com/rc/020514/tech_sony_playstati on_5.html
Tuesday May 14, 6:20 am Eastern Time
Reuters Company News
Sony cuts price of PlayStation, PS2
....... Thus ends my attempt at wit or whatever
They give away IE and a host of other applications for free now. They sell academic licensing for nearly nothing. Their assets make Alan Greenspan wet himself in envy.
As for an 'easy to set up Linux computer', please.. Do you really think tons of people are going to rush out and buy an X-box to put Linux on it?
They're not even doing that with normal PC's.
Neither am supporting m$ i but i've been seeing banners of m$ Visual Studio .NET on freshmeat AND today at slashdot.
You could use the analogue stick to move in any direction you wanted. When the camera angle shifted, your character kept moving in the same direction for about a second, just to give you time to adjust to the new screen and direction configuration. It was VERY smooth and intuitive, although it naturally wasn't the default option. The system you mention above gets in the way of the game, providing an unnecessary 'head messing' barrier to being absorbed in the carefully designed atmosphere. It would have been nice if all the characters in the Resident Evil movie rotated on the spot and moved in straight lines just to add that sense of authenticity. Let alone Milla Jojovich (sic?) not being able to pick up a keycard because her pockets were stuffed full of plants.
"Why did they cancel my favorite Sci-Fi show? I downloaded ALL the episodes!"
The N64 version got it right. You could use the analogue stick to move in any direction you wanted. When the camera angle shifted, your character kept moving in the same direction for about a second, just to give you time to adjust to the new screen and direction configuration.
It was VERY smooth and intuitive, although it naturally wasn't the default option. The system you mention above gets in the way of the game, providing an unnecessary 'head messing' barrier to being absorbed in the carefully designed atmosphere.
It would have been nice if all the characters in the Resident Evil movie rotated on the spot and moved in straight lines just to add that sense of authenticity. Let alone Milla Jojovich (sic?) not being able to pick up a keycard because her pockets were stuffed full of plants.
"Why did they cancel my favorite Sci-Fi show? I downloaded ALL the episodes!"
Your typical games player has spent at least some time in arcades and fairgrounds, places you're very unlikely to see the word "Microsoft" on a machine. The names Sega and Nintendo are extremely well known and instantly identifiable with games, hence players have historically bought their consoles in droves.
Enter Sony, they may not have had any presence in the arcades, but by producing TVs, audio and video gear the name has long been associated with pretty decent electronics gear. The massive amount of money they spent promoting the Playstation brand doubtless lit the flame that eventually engulfed their competitors - by promoting the PS as a "cool" item, kids, teens and adults felt embarrassed admitting to owning Nintendo and Sega gear, so the exodus continued.
What of the image of Microsoft? To most people Microsoft=Office computer software that crashes. Not a good starting point, is it? The problem is that this image has prevailed for years and years and it's going to be VERY difficult to shake this view. "If their office stuff crashes, their games stuff will probably crash" must be in the minds of many potential customers.
I certainly wouldn't buy an X-box - I already have a PC. If I want a console, I'll buy Sony or Nintendo. The console market has never been able to support 3 brands, (Atari vs Intellivision, Atari vs Nintendo, Nintendo vs Sega, Sega vs Playstation, Nintendo vs Playstation). And for those claiming MS will just pour money in, don't forget that both Nintendo and Sony have been in this business for a long time, and both have huge cash reserves to throw at this market. Nintendo only do one thing: games and game related products, Microsoft have fingers in many pies, so their $40billion must be sliced between them - they're obviously going to pour more into their established products.
No, I'm thinking it'll be a two horse race with Sony maybe winning out due to the DVD playing advantage of their box. I can see MS migrating into interactive TV type stuff rather than pure games...
Code, Hardware, stuff like that.
Throw in a Linux kit, and I'll take it!
Dude, that hairshirt's gotta itch. When you get through flagellating yourself take a peek into the family room. We'll be the ones playing GTA3.
I'm sure there was an NT 1 buried somewhere in a lab at MS at one point but it sure never made it :)
to the outside world!
Gamestop has pretty much confirmed the price drop on their website. $199 for a new PS2, $169 for a used system with a free DVD.
http://www.gamestop.com/gs/stores/newps2.asp
Have you checked out Resident Evil for the Gamecube yet?
One word: Awesome.
Nintendo just put out this press release in the UK... the company seems very happy (excuse the PR hype, it's a press release after all) - interesting fact is the healthy 2.3 games sold per machine.
400,000 NINTENDO GAMECUBES sold in launch week
May 14 2002 - NINTENDO GAMECUBES have scarcely rested on the shop shelves across Europe before heading straight out of the door. 400,000 NINTENDO GAMECUBES have been snapped up by European gamers - that's 80% of the consoles that were in stores across Europe for launch. Many stores sold out during launch week, however more NINTENDO GAMECUBES are being delivered daily from warehouses to replenish stocks in store, and another 500,000 are being shipped across Europe over the next seven weeks.
Games sales have also been outstanding. On average gamers are buying 2.3 games with each NINTENDO GAMECUBE bought, with the best selling games being Nintendo's Luigi's Mansion and Star Wars Rogue Leader: Rogue Squadron II. The average age of a NINTENDO GAMECUBE owner is 23 years.
This initial launch success will be followed by the release of the classic beat-em up game, Super Smash Bros. Melee on May 24, which sold over one million copies in just 9 weeks in Japan. This will be closely followed by the already legendary Pikmin, which launches across Europe on 14th June. By summer there will be a total of fifty games available for NINTENDO GAMECUBE.
Andy Williams, Nintendo UK General Manager says: "The hype around the launch of NINTENDO GAMECUBE was massive and we are delighted with the support the trade has put behind it. It has been, without doubt, a very successful launch and this is set to continue as we bring in more stock on a regular basis in the forthcoming weeks."
At the end of the money.com story about Nintendo, it talks about their plans for online gaming. They are taking a balanced approach, releasing the modem in a few months and letting developers worry about whether to charge money or not. The most interesting part of all is that Nintendo does not plan on charging a subscription or anything else. This will help keep overall costs for the users down, and allows flexibility for developers and users. And they don't have to worry about overhyping a a big launch and then having it go bust like Sega...are you listening PS2???
Thank you Dave Raggett
Willing to sell-out for 'entertainment'. What a winner YOU are.
Look, Microsoft is going to take a bath on the Xbox console. They knew that going in. Doesn't matter anyway. Software is where they will make their money on the console. Plus, unlike both Nintendo and Sony, Microsoft has $40,000,000,000 in the bank. That will sustain a very impressive burn rate trying to get into/take-over this market. Frankly if it wasn't for anti-trust concerns Microsoft could probably buy Sony and Nintendo just to eliminate them as competitors with petty cash.
Yes, the designer and head honcho of the XBox that quit and left Microsoft to start his own software company has been confirmed to be an exclusive GAMECUBE Dev. Plans for games on other systems are not known. Is this comedy or what.
Sorry, people, no matter how well the Gamecube is doing in Europe, that was yesterday, this is today.
... geez. Not to mention the prices on many of these games has fallen to below $20!!
Price being equal between the systems, right at the magic $199 mark, most people will find the PS2 irresistable. Both the X-Box and PS2 have it ALL OVER the Gamecube, and while it might have a few cool games, the other boxes have many MORE "must haves" from ALL genres.
I'm even tempted to pick up an X-Box, to suppliment the PS2 and Dreamcast consoles sitting next to my big screen, at that price.
Nintendo simply can't compete at the same pricepoint, without full DVD support and a bigger selection of games. Like most one-hit-wonders, Nintendo's Gamecube will fade into obscurity much like The Buggles or Toni Basil.
I don't think the X-Box is dead yet, but it's on the ropes. Only the incredible stamina (provided by M$ immense financial backing) will keep them around until the next box comes out. Still, there are more "must have" games on the PS2 than any other systems... not even counting the PSX compatibility! GTA3, GT3, FFX, MGS2, ATV-OF, Tekken series,
What I love about this post is it's a summary of various pieces of received "wisdom". Sigh...
Your typical games player has spent at least some time in arcades and fairgrounds, places you're very unlikely to see the word "Microsoft" on a machine.
Where have you been in the last few years? It's pretty hard to breathe these days without seeing MS advertising somewhere - TV, magazines, billboards. It's one of the most recognised brand names in the US. And if console users = computer users, then about 99.999% will have heard of MS.
The names Sega and Nintendo are extremely well known
Yeah, and that REALLY helped Sega sell its Dreamcast, didn't it? Bzzt.
What of the image of Microsoft? To most people Microsoft=Office computer software that crashes.
Yep, that's why no-one buys MS software any more.... desktop OS market share is down to, what, 95%? Apart from the 0.01% of the world's population that has a clue, to most people MS is computer software. MS might be bullies, monopolists and generally no good, but Mr & Ms Average are quite happy with IE, Excel, and MS Word.
I certainly wouldn't buy an X-box
Downfall of Microsoft: film at 11.
The console market has never been able to support 3 brands
One hears this said again and again, but without any thinking about why this might be the case. In the past, true, one machine has emerged as a "winner" in each technology generation. But why must that continue?
People forget that even after Sega went under and before the XBox launched, there were three games formats: Nintendo, PS and the PC.
Since then, the size of the games market has increased hugely, and Ninento and Sony seem to be able to co-exist with different niches and products (Sony gets the adults, Nintendo gets the kids). And now hardware is soooo cheap (viz these price wars), I don't see why three console brands can't survive. I see a lot of people here talking about buying two, and if the Nintendo gets to $99 I'll be one of them. It's a maturing market, competition increases, profits go down. If MS is willing to subsidise the XBox for long enough, it may well get established as a brand, and all three console will continue.
"Killer games" are already getting ported across the console and PC divides, and independent game companies have an incentive to continue that trend - more sales for them.
Just in case you''re thinking that MSFT's selling the XBox at a loss is going to drive them into bankruptcy, you might want to read this article on CNNMoney. To quote the article:
I somehow doubt that slashing XBox prices is going to hurt them that much in the long run.most large box retailers of 7 days price match. i know that Best Buy, Circuit City, and Fry's all do. take it back and get the money refunded that you over paid.
;-)
/* Half alive and half dead too, work is for suckers and the sucker is you. - "Half-life" by Local H*/
My friend, just went out and purchased an xbox for $210 and the halo game is very very good,
its worth it just for that. Also, he plugged it straight into the wall for internet playing.
http://money.cnn.com/2002/05/14/technology/ps2_pri cecuts/index.htm
But, who the heck cares? I'm still waiting for a price drop on something more interesting. Like, toothpaste.
Check out the great deals here on one of the best gaming systems ever. Sure the graphics and sound don't compete with most modern titles, but the gameplay can compete.
Emulation is ok, but the real thing is perfect.
Almost all the consoles are sold at a loss in the begining of their life. Intial estimates were that Microsoft lost about $100 per unit on X-Boxes. (Remeber that retail markups are about 25%, and think about the cost of a cheap PIII system.) Not including any advertising costs, which are much higer than R&D costs on something made from PC components. However prices drop fairly rapidly. I recall seeing that Sony was making money on $99 PSXs. Licensing fees per game run in the $10 range for new games, I don't know how much they get on older games. On the company's old games I have seen estimates that profit per game is closer to $15. But all of the above are esitmates.
Degaussing scares the bad magnetism out of the monitor and fills it with good karma.
Knowing something about the parts market (I DO work for a set-top box company that's working on...alternate solutions...) those boxes cost something in the ballpark of $600-800 to make. Volumes do NOT make it dramatically cheaper to make- the harddrive, Celeron, etc. don't come THAT cheap. Why do you think the set-top box market went belly-up? It's because the stupid companies went with Geodes, etc. because they were CHEAP. Bill of materials costing you only $200 or so.
I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
I think Nintendo may be forced to drop the price of the Gamecube to somewhere between US$130 to US$150 by the time E3 starts.
The reason is simple: who wants to pay US$200 for a dedicated gaming machine when for the same price you get much more powerful consoles that have DVD playback capability and broadband gaming ready to go? Nintendo runs a huge risk of losing a large amount of purchasers to Sony and Microsoft thanks to Sony's price drop and Microsoft's soon-to-announce price drop.
I've owned a PS2 and an X-Box since they were released and love them both. I mean they both have their pros and cons, but why does everyone feel like they have to put all their eggs in one basket and trash the other consoles? I'm not yet interested in a Gamecube because they typically aim for a younger demographic, but it's still a great system in it's own respect.
By the way, if any of you that have an X-Box are WRC fans you really should pick up a copy of Rallisport Challenge. It's one hell of a great game.
Keep Austin Weird!
I almost broke down and bought a PS2 for $289 just 2 days ago. Now I'm glad I waited.
Does anyone have any websites that actully prove this? I've seen a few sites saying "analysts estimate"ing (Lets face it, an analysts job is guesswork) but nothing from an actual Microsoft/Sony/Nintendo source.
Again, I don't belive that the manufacturing cost of any console are actually higher than what the console is sold for, when things like R&D, FAB setup etc are rolled into the costs, thats where I think the "selling at a loss" comes from.
A Pentium 4 1.6 system will set you back about £599, including more memory, more hard drive space and 17" monitor. The X-Box came out what, 3 months ago and at a price of £299.
On the analyst note, a lot seems to point back to "Merrill Lynch analyst Henry Blodget" and him expecting and estimating a $125 loss on each box. And according to MS "A Microsoft representative said Microsoft had not briefed Blodget on the Xbox" so he is making a best guess, and a guess that may be standing on poor foundations.
try to make ends meet, you're a slave to money, then you die
The only question remaining for the XBox and Microsoft is whether or not the XBox can be a viable product in only 1 of the 3 major consoles markets. Japan and Europe are over for the XBox. For whatever reason people in those two major markets didn't buy the XBox. And once a product flops as badly as the XBox has in those markets, it is difficult, if not impossible to recover.
Points of fact:
(1) Halo sold a mere 5,000 copies in the most recent week in Japan. The most of any XBox title.
(2) Following its hugely successful launch in Europe, Nintendo is dominating the software charts there and will most likely easily slip into the "PS2 alternative" slot which the XBox had coveted.
(3) Recent data shows the Cube outselling the XBox in the US.
The larger implications of the XBox having failed in both Europe and Japan are that third party game support will soon trickle away. It simply won't make economic sense for game makers to support the XBox when its only market is a small piece of the US pie. Microsoft has managed to bribe/buy out/conjole a tepid welcome for the XBox after its launch and through the next 6 months. But once those game makers see how badly the box is selling, that support will quickly fade away.
The hard truth really is quite simple for Microsoft: the XBox will _never_ succeed with only a portion of the US market. Without 3rd party support the XBox is DEAD.
when these "clone" machines came out (such as Compaq), that didn't perfectly emulate the IBM original.
At the time win95 came out, two PCs with the same motherboard could have every-so-slightly different BIOSes (same version numbers of course) with different bugs.
With my current machine, it could be an overheating CPU (its an athlon), faulty RAM (these days they don't even have parity bits), stretched motherboard (I bought the PC from a high street shop), dodgy device driver (which claims to be written by a US company, who has denied that they ever wrote it), a microsoft bug, or poor quality control by the games publisher. And as I said, copy protection technology is *not* claimed to work on all CD/DVD drives even by the company that wrote it!
FWIW things improved for games when I upgraded from ME to XP, but that killed music programs like Cubasis.
With a console I generally don't have to worry about any of those (although the Famicom (NES) came in several different versions in Japan).
Here are the current prices from EB Games
So, why should Nintendo drop their price? The PS2 is currently the same price, but it's also been out a full year longer. That's not reason enough for it to be cheaper, but most people think that way. So, the system to compare price with is the XBox. It's already cheaper, and after the price drop, it'll be the same price.
Nintendo has no real reason to drop their prices, now. The rumored price drop later this year? It'll probably be just in time for Christmas.
If all you have are silver bullets, everything looks like a werewolf.
As of mid march, they had sold 85000 copies of Dead or Alive in Japan. Source EDGE - April
Since then the Xbos has been outselling the PS2 at about 4:1.
To keep everyone who bought an XBox before the price drop happy, MS are giving away an AU$250 package, 2 games + 1 controller. It took 4 days from sending application to receiving the package.
Every day I go by the PS2 pallet at Frys and say WTF? $299? When are they EVER going to drop the price? I never buy MSRP, (which is why I suffer thru the soviet-style retail at Frys). I mean, who the fuck is going to come to Frys and their open-box-returns-back-on-the-shelf policy for full list price?
I've been telling my friends "just drop the price $10, and I'll buy it." Now it's dropped $100. Damn!
Oh, I don't know, maybe someone who knows what the Hell they're talking about, unlike you.
Nathan's blog
The best estimate I ever saw was in EETimes around the time the XBox was released, which took the XBox and stripped it down, showing the component price down to resistor-level. They came out with about $23 loss per box (yes, twenty three dollars, but just parts + manufacturing). Unfortunately, I don't believe the article made it to the online version of EETimes, as I can't find it there.
In any case, it's also possible that their costs have gone down, or have been lower than analysts expected, as it's hard to tell what kind of prices any given corporation can get on the items needed to manufacture these units, let alone the manufacturing costs themselves. Certain things like the CPU and GPU are custom items (though the CPU is based on the P3 and the GPU was the basis for the GeForce 4), and may not come down in price as readily as other items (and RAM always fluctuates, though goes down over the long term), while some things (like the hard drive an many of the low-level components) are sold at prices so near cost that they'll never change until they become rare (fewer people producing them) and increase in cost.
Overall, I'd say it's possible (though not likely) that MS could've had enough of a price drop in the components between the intial run of manufacturing and now that they may still lose the same amount of money at the lower price. Of course, with MS' cash reserves and with one of the console's best selling titles (Halo) being a 1st party game, plus having set out the project with long term goals (5 year product life), it's unlikely that MS will write it off as a failure until the thing really is a complete failure (rather than just not doing well outside the US and not selling as many games as a console that's been out much longer).
Why does everyone keep thinking that just because the PS2 has a DVD player that it's so much better than the GC? I know people that all they purchased their PS2 for was one or two games and the DVD player. Go out and buy a DVD player! A true DVD player offers many more features and is much more reliable that the PS2. Then go buy a GC and enjoy. The GC is just a pure video game machine. It's what it does and it's good at it. There, I've had my say.
Console manufacturers typically subsidize the cost of the console anywhere from 20-50%, so that it is affordable. They then make the money back on games
But Nintendo actually makes money on both the console and the games. Read the annual report if you don't believe me.
The only reason the xBox isn't dead yet is that Bill G has $40 billion in cash reserves.
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--- Will in Seattle - What are you doing to fight the War?
That's $15 * 2 + $40 * 2 + $30 * 3 + $15 + $10 = $225, or a $75 profit on the sale of the XBox and attached games and peripherals.
However, MSFT actually loses between $150 and $200 per console, and based on actual purchases of peripherals and games, they would have to sell 10 games to get close to break even.
And they're not selling more than 2-3 titles per box.
They're toast. Flip them over already.
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--- Will in Seattle - What are you doing to fight the War?
Well, if they're losing $100 to $150 on the $300 xBox, and the price drops to $149, then you can really distort their metrics by buying 10 xBox, turning them into Linux boxen (or BSD perhaps), and hitting them where it hurts.
...
The xBox needed to sell 8-10 games to break even at the $300 price point. If they're down to $149, with no game sales (oh, c'mon, buy one Halo game if they bundle it for free), then you just hit the Evil Empire with a body blow of a few thousand dollars and got some nice hardware out of the deal
Economics is a cruel mistress.
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--- Will in Seattle - What are you doing to fight the War?
Right now they can't even keep the GameCube on the shelves in Europe or Japan, and are barely able to keep up with demand in the US.
Remember, they have the sweet spot. Their target audience is women and kids, both of which are major growth sectors, and the ports are flying off the shelves at the game dev shops for their machine. Plus they actually make money on each GameCube they sell, unlike PS2 or xBox.
With hurt like that, who needs pain?
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--- Will in Seattle - What are you doing to fight the War?
Loss leading. Razor blade companies seems to be the canonical example.
Vermifax
Logout
Word. I bought the PS2 with the idea that I'd also be able to use it as a DVD player. Yeah, it's kind of crappy for a DVD player, not to mention mine (along with many others) developed a condition where it tends to reject DVDs. In short, I finally broke down and bought a real DVD player. I'm very happy with the PS2 as a gaming system, but a DVD player it ain't.
Head down, go to sleep to the rhythm of the war drums...
I just *love* how the link supporting your argument is to an msn.com site. Let's try something different, shall we? How about an independant analysis?
Nathan's blog
going by what you have said, a half bred pee cee is better at console games than consoles. therefore, if there is a dedicated OS for games, full fledged pee cees should kick major butt.
someone should start writing a GameOS...
Isn't there something missing from the MSN report? Something along the lines of "MSN Money is a Microsoft service"? Or perhaps "this article is a paid advertisement"? Something, at least, to mention that Microsoft have their own news site as well.
Of course, here in Australia, we haven't seen the half of it yet. Xbox sales were slow, Microsoft announced a 40% price drop, Xbox has outsold Playstation 2 fairly easily for two weeks. The Beeb was reporting a similar phenomenon in Europe. Then again, Nintendo are reporting "record-breaking" pre-orders for Gamecube - the machine gets released this Friday - and promised a price drop of nearly 25%. We'll have to wait and see how that pans out.
None of this is helping Xbox in Japan, where there is no price decrease in effect - and where Xbox is being outsold by just about everything, including Dreamcast, and where things would have been disastrous without Dead Or Alive 3. Also, Xbox is (apparently) starting to fall behind Gamecube in the States, in terms of sales figures and thus installed base. Expect announcements sooner rather than later.
Attack its weak point for massive damage!
Meanwhile, can anyone confirm that the PS2 price will be dropping by a third here? I wouldn't mind picking one up for A$320.
I mean msn doesn't show any editorial bias towards their parent company at all does it?
Smid
PS2 $199
XBox $199
PS1 $49
Also Micro$oft has dropped the price on many of the accessories... finally. Still, the only reason to buy an XBox though is for Halo. So, if you've beat Halo and are bored with it, the XBox is worthless.
-jz
Microsoft doesn't release figures for their individual product lines, but microsoft's cost of the goods, not including all the R&D and marketing, they sell jumped by almost 660 million from the september to the december quarter. The revenue for the segment that includes X-Box also increased by 690 million, but other products in that segment should have increased as well it includes their other consumer products, and MSN. Whether or not X-Boxes made or lost money depends on how much other stuff they sold. Also remember that European prices were much higher than US prices. When introduced X-Boxes were going for $299 the equivalent to £199. Costs are estimated by looking at parts costs, adding manufacturing costs, and then estimating a retail markup. Most of the analysts I have seen estimated production costs were about $300, and the retail markup was about 25%. This leads to a loss per unit of about $75 at the original prices and unit costs. Finally, on the analyst note, while Henry and the other analysts have to form their own estimates, they generally get help in the form of revenue and earnings guidance from the company. Also, there are ways of sending information to someone without briefing them. The analyst could ask is this close, and interpret the response.
I'm not sure what the above post means....what does it do? (or he think it does?)