Console Pricing Economics

Red Mercury writes "Red Mercury has just released a new installment of Monday Morning CEO. Today's topic: XBox Economics. The article explains some of the myths and realities about game console pricing, how the current price war is playing out, why Sony is winning, and why Microsoft is losing." Interesting piece about all the recent console price cuts.

Comments

In the big pond now....

[Papa Legba]

Looks like microsoft may have gotten into a fight with someone a little more cagy than themselves and I am laughing my butt off. Sony is an old hand at dealing with psuedo monopolies and the latest fads. Microsoft is a talented amature at this but it looks like age and cunning are about to teach youth and exuberance a lesson.

CEO of Nintendo " Sonny we were getting sued for anti-competitive behavior while you were still trying to secure your first round of VC funding. Don't try to teach this old hound how to hunt."

Bill Gates " whimper"

Only if it works.

[MountainLogic]

Sure MS can make some multi-billion dollar bets if they win. If they loose the bet you can be sure the product boss is dead at MS. After softies see a few big wigs get the axe for taking risk how long before MS starts looking like any other big biz.

Remember a billion here, a billion there and you start talking real money.

Re:The Prophecies are Coming True

[gnugnugnu]

I posted the wise words of Gord too (just before you did i think).
I dont have 50 Karma.
I could really do without being marked down as redundant and having my meagre karma further decimated.

http://slashdot.org/comments.pl?sid=32900&cid=35 51 274

Re:I think we all know about XBox and MS

[hattig]

> We know that XBOX 2 will have a bigger hard drive,
> slightly better graphics, and shortly after
> release an Office suite targeted to 'college
> kids'.

That wouldn't be hard for Sony to do with the PS3... "Hi is that Sun? Yeah, we want an office suite like thing to come free with every PS3 keyboard and mouse kit we sell, so that we can give the whack to Microsoft. What? You will let us give away StarOffice 7 free for the PS3 keyboard/mouse combo? Excellent, you guys rock."

You can bet:

1) The PS3 will be able to run Linux without a problem - stick it on a bootable DVD even.
2) The PS3 will be around 10x more powerful that the PS2 at least. The PS2 runs Linux fine.
3) So PS3 OpenOffice is extremely likely, shipped on a bootable Linux PS3 DVD, saving documents to either a built in hard drive or to MemoryStick cards (read your OpenOffice PS3 documents on a Sony Cleo!)
4) I bet someone will do this for the PS2 version of Linux now...

Re:Real economics

[rcs1000]

If you call Electronic Arts and say...

'Hey EA, you know the way that Madden will sell 2m copies whether it's priced at $30 or $50?'

'Yes,' says EA, 'it's because we know this that we are the best video game company in the world.'

'Well, we'd like you to sell it for $30. What do you think? Err, hello? Is anyone there?'

Re:This doesn't matter

[swankypimp]

(how many millions of people are eagerly awaiting Dreamcast 2? That's right, zero million.)

Wait a minute! I'm eagerly awaiting the Dreamcast 2. Coincidentally, I also need another low-cost BSD router.