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Xbox Price To Shadow PS2, Not GameCube
Thanks to Reuters for their story indicating Microsoft won't necessarily act on Nintendo hardware price reductions. Xbox boss Robbie Bach, in a Tokyo news conference, suggested "...the company's main benchmark when it comes to pricing would remain Sony... and not Nintendo", and added "We've been selling at a price premium to GameCube since the first day and I don't think that's going to change." Elsewhere in the news conference, Bach talked about the long-term growth of consoles, estimating that "...video games have a penetration rate of about 40 percent, but that rate can grow to 80 percent over the next decade if games become more appealing to a wider audience."
Esp. when you consider that Microsoft loses $$ on every console sold. Either way, I hope the new $99 price gives the gamecube some more US market share. I have never been an X Box fan, but if the XBox dropepd to $99, I may consider getting one.
What, me Tweet?
My gut tells me that if the Gamecube were more of a market player then Microsoft would react to the recent price drop of the Gamecube. The truth is that Nintendo is becoming less of a player and therefore will not influence others as much.
I always save my last mod point to mod up a good troll. You people are too serious.
Assume that every single casual gamer has a system (Xbox or PS2). The console market is now mature, and PS2 dominates this market.
This leaves two markets left: the non-gamer, and the hardcore gamer.
The hardcore gamer would want to buy a second system. He'd select this base on game exclusives. As Xbox has a handful of must-haves (eg. Halo, and KOTOR)... A lot of Xbox Xmas releases have been delayed, and in addition to this, a lot of the titles are multi-platform for Xmas. With the Nintendo price at $99 and with the most original first party games (eg.Mario Party 5, Double Dash, etc.), who do you think will win as the second console?
Finally, the non-gamer would choose his console most likely based on price and broader appeal for his family... most probably the Gamecube.
The Xbox will never get market share as the PS2 (it's too late), so it compares itself against Nintendo constantly. Yet, in this press release, Bach wants a wider appeal of videogames from a penetration rate of 40% to 80%. Based on the above, how well does it look like the Xbox will fare this Xmas season?
To see what someone is selling a product at and sell yours at a similar price is common.
If microsoft was having meetings with sony and nintendo saying "Yo lets all make our consoles 300$ a piece" That would be price fixing. I do think there is price fixing on the games though. Everone seems damn strick on staying at $49. I remember when N64 was out, the games were expensive but most new ps1 games were pretty cheap. The games are more the money maker than the console anyway though so I guess it makes sense to jack them up.
PS2 Price To Shadow GameCube, Not XBox
"...video games have a penetration rate of about 40 percent, but that rate can grow to 80 percent over the next decade if games become more appealing to a wider audience."
Which if it's anything like television means making simpler, blander games which require less thought to play.
*sigh*
If Sony drops the PS2 to 129.99?
I'd love to see the effects in M$'s balance sheet.
Don't get me wrong, I'd like the Xbox to stay (the more competition, the better for consumers), but obviously they want to demerit the Nintendo.
Its a fairly well known fact that most games out there are aimed for a male in their mid-teens to early twenties age bracket. The Sims is a good example of games that do appeal to females... When will the gaming community develop more games for girls? When more girls get into the industry. Most people who develop games are passionate about their work, hence the reason why there are so many RPG's, RTS's and FPS's. I know I'd have trouble getting excited about working on the next Barbie RTS game, but I'd be excited about working on a GI Joe one!
What I'm curious about is why every retailer on the face of the earth sells every system for the same price. (Or, nearly every). Are the margins that tight, or are they just worried they'd head towards subsidizing the consoles just to keep competitive, or is it something more sinister?
but that rate can grow to 80 percent over the next decade if games become more appealing to a wider audience.
You, we hear this over and over again, but rather then actually trying to expand the market, we get the same POS "women's" or "girl's" games over and over again. They fail, every time. Meanwhile, if they'd just take a look around at what women are playing, or even (*gasp!*) commision an actually scientific survey, they'd learn what quite a lot of us already know.
Which is that A: some of it's sheer social stigma and you're mostly just going to have to wait for that to go away and B: while you can't generalize 100% women and girls seem to go for puzzle games and what I think of as "lower-stakes" games (like puzzle games).
My wife enjoyed the original Dungeon Keeper, and her usual strategy was to lovingly craft the dungeon and built up her forces, this being the part of the game she enjoyed, so that when the final battle took place it was a massacre. She didn't really like combat whos outcome was in doubt. Those are my favorites, of course, being the male pig that I am. I can't be 100% certain "prefers low-stakes gaming" is a valid generalization (and again I remind you it's only a trend, not an absolute; women get addicted to real gambling with real money sometimes too) without a formal study but I think there's something to it.
People often speculate that women will prefer "social" games but from what I see both genders prefer "social" games, it's just the type of "social" differs, and is only correlated with gender, not determined. Much like the real world, where we all have the same theoretical options but we all choose what we do differently, you don't need to "try" to provide "women-friendly" social mechanisms, just provide a wide variety of mechanisms and let people gravitate to the ones they like. MMORPG can be treated like a random chat, a virtually-loner game with sophisticated NPCs, a social club via clans, and any combination thereof, and that covers pretty much everything.
And finally, 10 or 20 years of video game history shows "trying" too hard to make a game that will appeal to your highly chauvinistic view of women doesn't work, either. "35-year-old women like makeup, right? We'll make a game about applying makeup!" Sheesh.
This poses quite an interesting dilema for Microsoft. Yes, they are indeed losing money on every XBox sold. But that's not a concern for them...they have deep pockets and what they really want to do is populate the land with XBox units. But...would they fare better by reducing the price? Yes, they would lose more money on each unit sold, but if their ultimate goal is to gain market share, why not? PS2 is already kicking their ass and if they expect to have any chance, they better do something different. Their current business model isn't doing it for them yet.
"He uses statistics as a drunken man uses lampposts...for support rather than illumination." - Andrew Lang
If the XBox drops to $99 I'll definitely buy one. Of course, I'll use it for something else than a gaming console. I have no intention on growing XBox real market share.
I already have a GameCube and I love it.
The power of accurate observation is commonly called cynicism by those who have not got it. - G.B. Shaw
Margins are that tight. For the first few years, the consoles are sold at cost with the hopes that peripherals and games will provide the profit. The PSone, AFAIK, took years to offer a profit margin of $5-10.
*everything* is Orwellian to cats.
A price would change sales significantly for the PS2 or Cube, but the XBox's demographic is FAR TOO SPECIFIC to have any real effect beyond convincing those who were just about ready to get it, should a price drop occur. Given that the main pull of the system is on graphics, fps's, fighters and sports games, you won't get many people caving in for it.
Some people like a variety of AAA games, I'm one of them. When all your top sellers are first person shooters(Aside from ONE RPG in the last 3 years of it's life) something is awry.
Just remember, the top selling version of Soul Calibur II is the Cube one.
Sure.
Price fixing is when Sony, Microsoft and Ninetendo get together in a room and say, "Let's all charge $500 for a console."
This is anticompetitive behavior because now to buy a console a person has to pay $300. The companies have decided not to compete on price but instead to ream the public.
Instead what is happening is Ninetendo is charging $100 in order to sell more. Microsoft has decided they'll lose sales if they are too much more expensive then Sony but will lose money if they get to be as cheap as Nintendo. So they have decided to target their price @ Sony's level.
Of course, if Microsoft and Sony have got together and decided to keep the price where it is, then that would be illegal.
In short, you can set your price whereever you want to. You can't talk to you competitors and decide on a price together.
Of course IANAL and such things, but that's my understanding.
Bastards.
Video gaming penetration will only reach the 80% level when more old people start DYING!
For the PS2 to come down. Followed, nearly, immediately by the Xbox. Think about it, Gamecube has thrown the gauntlet down (again) AND way before Christmas. With all the talk about PS3 and Xbox 2 floating around, its no secret that Sony and Microsoft are already planning their strategies for Round 2. Flooding the market with their older systems is just another way for them to generate hype while clearing the warehouses. (The PS2 has sold over 40 million systems, how many systems do you think are sitting in a warehouse unsold?)
They still like a challenge but they seem to be even more frustrated and unhappy with a game when they lose. So if I were going to build a game that I would have larger appeal to women, I would tend to stick to more open ended games with less clear winners and losers. The sims fits this target and everquest on the nerf serves fits this, but I can't think of a whole hell of a lot else that does.
I used to have a cool sig, back when I cared