More Gaming Hardware Price Cuts, Mergers Needed?

Posted by simoniker on Tuesday August 17, 2004 @08:07PM from the cut-slash-cut dept.

Thanks to Reuters for its article discussing game publishers' and analysts' lust for console hardware price cuts. According to the IDG-authored survey: "2003 proved disappointing to industry players because of a dearth of both blockbuster titles and significant hardware price cuts to stimulate demand", and Activision's Bobby Kotick expands on these wished-for price reductions: "Fifty percent of all hardware units on the (original) PlayStation were sold at $99... For some reason, this is one of those industries where that $99 is such a magic price point, and it's such a catalyst for that mass-market consumer." Mike McGarvey of Eidos also commented on the rise of the mega-publisher through continued mergers: "It's not far off, I think... six or seven (publishers) sounds about right."

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Re:Magic price point... by Fuzzle · 2004-08-17 22:29 · Score: 5, Insightful

I think the amazement at the 99 dollar pricepoint is hliarious. It's at that point where a PARENT can see it not being a waste of money to buy something for their child, and this carries through from those children to adulthood. It's been proven time and time again that 100 dollars is most people's limits for an extravagance. It just seems to me that it's basic economics and common sense that a 99 dollar item (with it's "sub 3 figure") price will sell better than a 149 dollar item, which can be seen as costing almost as 200 dollars.