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When all these three are out on the market the standard of gaming is going to rocket. They will all be in competition with each other for market share. But what are and were their tactics leading up to the release of their console? I believe that Sony, Microsoft and Nintendo all have different pricing strategies and these depend on the market that they are aiming their console at.
The first of the three to be released was the Playstation 2. Sony wanted to capitalise on the success of their first console, the Playstation. The price of the PS2 seemed quite high when they first announced it. I believe that Sony used a 'price skimming technique'. This is where a business sets the price high at first then gradually brings the price down to compete with other products on the market. This is what Sony did with the PS2. The initial price was fairly high but a about four or five months prior to the X-Box, a main competitor in the console market, was going to be released they dropped the price. They may have wanted to win over some of the potential X-Box customers even before the X-Box had been released. Sony may also have noted that their sales of the PS2 were falling so they intercepted with a lower price persuading people to look twice at the PS2, becasue of its competative price.
The next of the 'next generation' consoles to be released was the X-Box, just four days ago. The price of the X-Box is tremendously high compared with the Ps2 and the future price of the Gamecube. I believe that Microsoft were using a 'Price Leader' technique when launcing the X-Box. Microsoft are no 'newbies' to leading markets. They have an established market share in many markets through the success of Bill Gates and the Windows software. This is why i think they have used this technique. 'Price Leader' stratagy is when you set the market price. This is normally done when you have the biggest market share, and Microsoft do in most computing markets. I also think that Microsoft wanted to promote all the 'pros' of the X-Box and by slapping a big price tag on it they are using 'psychological pricing' ie. people think if there is a big price tag it must be offereing something good. Microsoft may also be aiming their product at the older gamer. They may have more money and thats why Microsoft have gone with a higher price tag. Or maybe they just want to exploit the gaming public for every last penny they have! You decide.
The final 'next generation' console to be released will be the Gamecube, on May the third. This will be produced by Nintendo who are the grandads of the gaming world. The price tag of the Gamecube looks very inviting. It is considerably cheaper than both the Ps2 and the X-Box. I believe that Nintendo are using a 'Price Penetration' srategy. This is when a business sets the price relatively low. This allows immediate entry to the market, and therefore immediate competition with rival companies. Being the last of three consoles to be released it may have a disadvantage, ie. everyone who wants a next generation console already has one. But the one thing that sets this console apart from the other two is its market. Although it is in the overall console market i believe that it has a well defined niche market - the younger gamer. Nintendo are renound for producing cute platformers and great multi-players like Mario Kart or Goldeneye. They may therefore be aiming the Gamecube at the younger audience ie. hardly any over 18 games and strategy games etc. This may be why they have set their price lower. So gamers who havnt got a steady job ie. children, can afford it.
All three consoles have distinct pricing strategies and are all aimed at probably a different sector, or niche, market. All their differences aside i think they all have one major thing in common, they are all ace consoles and they will all shift a truck load. That is why the future of gaming looks bright so put on those sun shades and lap it up!
The first of the three to be released was the Playstation 2. Sony wanted to capitalise on the success of their first console, the Playstation. The price of the PS2 seemed quite high when they first announced it. I believe that Sony used a 'price skimming technique'. This is where a business sets the price high at first then gradually brings the price down to compete with other products on the market. This is what Sony did with the PS2. The initial price was fairly high but a about four or five months prior to the X-Box, a main competitor in the console market, was going to be released they dropped the price. They may have wanted to win over some of the potential X-Box customers even before the X-Box had been released. Sony may also have noted that their sales of the PS2 were falling so they intercepted with a lower price persuading people to look twice at the PS2, becasue of its competative price.
The next of the 'next generation' consoles to be released was the X-Box, just four days ago. The price of the X-Box is tremendously high compared with the Ps2 and the future price of the Gamecube. I believe that Microsoft were using a 'Price Leader' technique when launcing the X-Box. Microsoft are no 'newbies' to leading markets. They have an established market share in many markets through the success of Bill Gates and the Windows software. This is why i think they have used this technique. 'Price Leader' stratagy is when you set the market price. This is normally done when you have the biggest market share, and Microsoft do in most computing markets. I also think that Microsoft wanted to promote all the 'pros' of the X-Box and by slapping a big price tag on it they are using 'psychological pricing' ie. people think if there is a big price tag it must be offereing something good. Microsoft may also be aiming their product at the older gamer. They may have more money and thats why Microsoft have gone with a higher price tag. Or maybe they just want to exploit the gaming public for every last penny they have! You decide.
The final 'next generation' console to be released will be the Gamecube, on May the third. This will be produced by Nintendo who are the grandads of the gaming world. The price tag of the Gamecube looks very inviting. It is considerably cheaper than both the Ps2 and the X-Box. I believe that Nintendo are using a 'Price Penetration' srategy. This is when a business sets the price relatively low. This allows immediate entry to the market, and therefore immediate competition with rival companies. Being the last of three consoles to be released it may have a disadvantage, ie. everyone who wants a next generation console already has one. But the one thing that sets this console apart from the other two is its market. Although it is in the overall console market i believe that it has a well defined niche market - the younger gamer. Nintendo are renound for producing cute platformers and great multi-players like Mario Kart or Goldeneye. They may therefore be aiming the Gamecube at the younger audience ie. hardly any over 18 games and strategy games etc. This may be why they have set their price lower. So gamers who havnt got a steady job ie. children, can afford it.
All three consoles have distinct pricing strategies and are all aimed at probably a different sector, or niche, market. All their differences aside i think they all have one major thing in common, they are all ace consoles and they will all shift a truck load. That is why the future of gaming looks bright so put on those sun shades and lap it up!
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When all these three are out on the market the standard of gaming is going to rocket. They will all be in competition with each other for market share. But what are and were their tactics leading up to the release of their console? I believe that Sony, Microsoft and Nintendo all have different pricing strategies and these depend on the market that they are aiming their console at.
The first of the three to be released was the Playstation 2. Sony wanted to capitalise on the success of their first console, the Playstation. The price of the PS2 seemed quite high when they first announced it. I believe that Sony used a 'price skimming technique'. This is where a business sets the price high at first then gradually brings the price down to compete with other products on the market. This is what Sony did with the PS2. The initial price was fairly high but a about four or five months prior to the X-Box, a main competitor in the console market, was going to be released they dropped the price. They may have wanted to win over some of the potential X-Box customers even before the X-Box had been released. Sony may also have noted that their sales of the PS2 were falling so they intercepted with a lower price persuading people to look twice at the PS2, becasue of its competative price.
The next of the 'next generation' consoles to be released was the X-Box, just four days ago. The price of the X-Box is tremendously high compared with the Ps2 and the future price of the Gamecube. I believe that Microsoft were using a 'Price Leader' technique when launcing the X-Box. Microsoft are no 'newbies' to leading markets. They have an established market share in many markets through the success of Bill Gates and the Windows software. This is why i think they have used this technique. 'Price Leader' stratagy is when you set the market price. This is normally done when you have the biggest market share, and Microsoft do in most computing markets. I also think that Microsoft wanted to promote all the 'pros' of the X-Box and by slapping a big price tag on it they are using 'psychological pricing' ie. people think if there is a big price tag it must be offereing something good. Microsoft may also be aiming their product at the older gamer. They may have more money and thats why Microsoft have gone with a higher price tag. Or maybe they just want to exploit the gaming public for every last penny they have! You decide.
The final 'next generation' console to be released will be the Gamecube, on May the third. This will be produced by Nintendo who are the grandads of the gaming world. The price tag of the Gamecube looks very inviting. It is considerably cheaper than both the Ps2 and the X-Box. I believe that Nintendo are using a 'Price Penetration' srategy. This is when a business sets the price relatively low. This allows immediate entry to the market, and therefore immediate competition with rival companies. Being the last of three consoles to be released it may have a disadvantage, ie. everyone who wants a next generation console already has one. But the one thing that sets this console apart from the other two is its market. Although it is in the overall console market i believe that it has a well defined niche market - the younger gamer. Nintendo are renound for producing cute platformers and great multi-players like Mario Kart or Goldeneye. They may therefore be aiming the Gamecube at the younger audience ie. hardly any over 18 games and strategy games etc. This may be why they have set their price lower. So gamers who havnt got a steady job ie. children, can afford it.
All three consoles have distinct pricing strategies and are all aimed at probably a different sector, or niche, market. All their differences aside i think they all have one major thing in common, they are all ace consoles and they will all shift a truck load. That is why the future of gaming looks bright so put on those sun shades and lap it up!
The first of the three to be released was the Playstation 2. Sony wanted to capitalise on the success of their first console, the Playstation. The price of the PS2 seemed quite high when they first announced it. I believe that Sony used a 'price skimming technique'. This is where a business sets the price high at first then gradually brings the price down to compete with other products on the market. This is what Sony did with the PS2. The initial price was fairly high but a about four or five months prior to the X-Box, a main competitor in the console market, was going to be released they dropped the price. They may have wanted to win over some of the potential X-Box customers even before the X-Box had been released. Sony may also have noted that their sales of the PS2 were falling so they intercepted with a lower price persuading people to look twice at the PS2, becasue of its competative price.
The next of the 'next generation' consoles to be released was the X-Box, just four days ago. The price of the X-Box is tremendously high compared with the Ps2 and the future price of the Gamecube. I believe that Microsoft were using a 'Price Leader' technique when launcing the X-Box. Microsoft are no 'newbies' to leading markets. They have an established market share in many markets through the success of Bill Gates and the Windows software. This is why i think they have used this technique. 'Price Leader' stratagy is when you set the market price. This is normally done when you have the biggest market share, and Microsoft do in most computing markets. I also think that Microsoft wanted to promote all the 'pros' of the X-Box and by slapping a big price tag on it they are using 'psychological pricing' ie. people think if there is a big price tag it must be offereing something good. Microsoft may also be aiming their product at the older gamer. They may have more money and thats why Microsoft have gone with a higher price tag. Or maybe they just want to exploit the gaming public for every last penny they have! You decide.
The final 'next generation' console to be released will be the Gamecube, on May the third. This will be produced by Nintendo who are the grandads of the gaming world. The price tag of the Gamecube looks very inviting. It is considerably cheaper than both the Ps2 and the X-Box. I believe that Nintendo are using a 'Price Penetration' srategy. This is when a business sets the price relatively low. This allows immediate entry to the market, and therefore immediate competition with rival companies. Being the last of three consoles to be released it may have a disadvantage, ie. everyone who wants a next generation console already has one. But the one thing that sets this console apart from the other two is its market. Although it is in the overall console market i believe that it has a well defined niche market - the younger gamer. Nintendo are renound for producing cute platformers and great multi-players like Mario Kart or Goldeneye. They may therefore be aiming the Gamecube at the younger audience ie. hardly any over 18 games and strategy games etc. This may be why they have set their price lower. So gamers who havnt got a steady job ie. children, can afford it.
All three consoles have distinct pricing strategies and are all aimed at probably a different sector, or niche, market. All their differences aside i think they all have one major thing in common, they are all ace consoles and they will all shift a truck load. That is why the future of gaming looks bright so put on those sun shades and lap it up!
good post :-) i agree with most of what you said but especially about Nintendo's way into the market with the low price so they will be able to compete with the XBOX and the PS2 from the beginning
Great post.
I totally agree. Sony were very clever to release their console at such a high price and then drop it. The simple reason is sales. Okay you may think that no one would buy it for ammount it was being sold at first, but from the small minority that did, they got a fair bit of money. Then by lowering the price for christmas, gamers thought "What a great deal! Considering what it cost before that is." For one, i thought that.
I'm really not sure about Microsofts approach though. Okay, so the X-Box may be a very poweful machine, but the price makes you turn away in disgust. Even for a great game like Halo or Project Gotham Racing, i wouldn't splash out £300 on it.
The GameCube price is beautiful. £150 for a small and amazing piece of kit. I think Nintendo's approach would get them a lot more sales than the likes of PS2 and X-Box, but would they get a much money? Maybe, maybe not. If they shift enough consoles, they'll get their moneys worth.
Anyway, good luck on winning GAD if that's what you're hoping for.
I totally agree. Sony were very clever to release their console at such a high price and then drop it. The simple reason is sales. Okay you may think that no one would buy it for ammount it was being sold at first, but from the small minority that did, they got a fair bit of money. Then by lowering the price for christmas, gamers thought "What a great deal! Considering what it cost before that is." For one, i thought that.
I'm really not sure about Microsofts approach though. Okay, so the X-Box may be a very poweful machine, but the price makes you turn away in disgust. Even for a great game like Halo or Project Gotham Racing, i wouldn't splash out £300 on it.
The GameCube price is beautiful. £150 for a small and amazing piece of kit. I think Nintendo's approach would get them a lot more sales than the likes of PS2 and X-Box, but would they get a much money? Maybe, maybe not. If they shift enough consoles, they'll get their moneys worth.
Anyway, good luck on winning GAD if that's what you're hoping for.
Good post. Nintendo seem to have the right idea, but it looks like retailers might make things diffiult for them. Nintendo set the RRP for Europe at £150 but it seems it's going to sell for more than that. Even SR is offering the console for £165: on top of which you'll need a memory card and an extra controller for two-player games. Let's hope things change before release day!
I already have a PS2 and i think i'm going to get a Gamecube. The X-Box price totally puts me off. The games on SR are even more expensive, i know only a fiver or so, but still! The gamecube apeals to me becasue i love the multi-player action and the 'cute' platformers and Nintendo characters. Bring it on!
One thing I find amazing is that the PS2 is still $299 in the USA. When you do the conversion into pounds we are actually getting the PS2 for cheaper that they are!
Yeah, thats a change - europe normally gets the bum deal! Why is Australia getting the Gamecube for the equivelent price of £135? Why can they get it cheaper?
UK prices are totally ridiculous: games, cds, videos etc are way more expensive here than in other countries, especially if you buy on the high street. In fact I've bought GBA games from Australia that, even with shipping, worked out way cheaper than buying them at home.
G®åpô²ºº² wrote:
> Yeah, thats a change - europe normally gets the bum deal! Why is Australia
> getting the Gamecube for the equivelent price of £135? Why can they get
> it cheaper?
Maybe because there is a smaller market and they know if the price is too high peope won't buy it, whereas people will buy it in Europe whatever the price
> Yeah, thats a change - europe normally gets the bum deal! Why is Australia
> getting the Gamecube for the equivelent price of £135? Why can they get
> it cheaper?
Maybe because there is a smaller market and they know if the price is too high peope won't buy it, whereas people will buy it in Europe whatever the price
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