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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!
pop
Prices of consoles are expensive these days, but thats what you have to expect with the next generation consoles. I also think that because theres no DVD in the game cube that the price is relativly lower than the PS 2 and X-BoX. I think the PS 2 is best value for money at the moment has the prices have dropped by £100
he probably already built himself a house out of the x-box consoles (they are big enough and heavy enough as it is!)
Actually thinking about it...what is stopping Bill gates buying a whole load of X-Boxes himself :)
plus you get all the 'bill gates supporters' buying the x-box and its software. Love em or hate em Microsoft has a good reputation at producing quality software so the X-Box has a very stable platform to try and knock PS2 off the top spot.
And why do you think people liek you and me want to get it....It surely isnt because of the superb graphics the console can offer (note sarcasm). It is because of Nintendo's reputation for creating innovative fun games...and obviously the price...But despite all this I still think the X-Box will do better than the gamecube because of the range of games and the superb graphics and the in-built hard drive..etc
True, true, but i was focusing on the price aspects of the three systems. i believe the gamecube will do very well aswell. i'm getting one for a start.
Not sure why you had a pop in my post to be honest......But I guess I ll reply.
Anyway there wouldnt be much point in both Microsoft and Gamecube trying to copy the PS2 and try and have similar range of games and accessories. In order to be successful nowadays, you have to come up with, if not original, but at least different ideas. The Gamecube is totally different to the PS2 and the X-Box because it does tend to rely on bright coloured graphics and a range of games aimed at a younger audience. The X-Box is more like a PS2. It is undoubtedly more powerful than the other 2 consoles but at this very moment it does seem interesting that Microsoft opted to have a similar range of games to PS2-ie mostly unoriginal ideas or sequels. The gamecube opts for a fresh approach which in my opinion can make it successful
Anyway there wouldnt be much point in both Microsoft and Gamecube trying to copy the PS2 and try and have similar range of games and accessories. In order to be successful nowadays, you have to come up with, if not original, but at least different ideas. The Gamecube is totally different to the PS2 and the X-Box because it does tend to rely on bright coloured graphics and a range of games aimed at a younger audience. The X-Box is more like a PS2. It is undoubtedly more powerful than the other 2 consoles but at this very moment it does seem interesting that Microsoft opted to have a similar range of games to PS2-ie mostly unoriginal ideas or sequels. The gamecube opts for a fresh approach which in my opinion can make it successful
i know its in FOG but i thought this is what this forum needs
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!