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Nope not a stupid topic slagging the XBox, this one is serious. Microsofts XBox isn't selling as well as they hoped. Don't believe me then check out
http://www.theregister.co.uk/content/54/24630.html
Who knows what this could mean, maybe an early price drop sooner than we thought or a drop in games prices or maybe it wont change things. I am surprised by this, It is a great console and maybe the small number of games isn't helping things yet. Not sure what effect this will have on the industy as a whole, guess we will just need to wait and see where things go from here, not something Microsoft should ignore anyway.
http://www.theregister.co.uk/content/54/24630.html
Who knows what this could mean, maybe an early price drop sooner than we thought or a drop in games prices or maybe it wont change things. I am surprised by this, It is a great console and maybe the small number of games isn't helping things yet. Not sure what effect this will have on the industy as a whole, guess we will just need to wait and see where things go from here, not something Microsoft should ignore anyway.
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I see where you're coming from but I mean that they sell the console at an inflated price relative to the minimum price they are willing to sell it at.
All this stuff about falling production costs holds little real weight. Sure the people who make the consoles get better at putting them together and productivity increases, but the actual volume they churn out doesn't alter drastically, and that's where the major savings lie: in bulk production.
It is true that consoles are sold at below their production cost but that's because the manufacturers can be pretty sure that everyone will buy enough games to cover that initial subsidy. The reason why consoles are initially high-priced is because it taps into consumer surplus more efficiently. The console market is essentially divided into two: those who will buy the console as soon as possible and those who will wait. They are two seperate groups and therefore a different price is provided for each. If you want to buy a console early then you pay for that want at a premium, and some people are happy to pay it.
It's true that Microsoft still make a loss but it's less of a loss than they could have made, and it partly allows them to subsidise the inevitable price fall that taps into the second market area of those who wait. So technically consoles do start out at an inflated price because manufacturers don't charge the lowest price they are willing to charge. But if there's demand for a high-priced console on its release date then the price will reflect that. What Nintendo have done is to start charging at the base price, and I can't see the price falling much further. I think this reflects how cut-throat the console market has become, Sega has bitten the dust and Microsoft has moved in leaving Nintendo in a dangerous position; the PS2 and X-box will already be established when the Gamecube comes out and if Microsof and Sony then cut their prices, the Gamecube would be finished as a maninstream console. So they have released it at the lowest price possible.
If Sony and Microsoft are sensible they will cut their prices before the Gamecube comes out. If they don't then they certainly will after it comes out. Hopefully all this competition will push down game prices as well, but that remains to be seen.
All this stuff about falling production costs holds little real weight. Sure the people who make the consoles get better at putting them together and productivity increases, but the actual volume they churn out doesn't alter drastically, and that's where the major savings lie: in bulk production.
It is true that consoles are sold at below their production cost but that's because the manufacturers can be pretty sure that everyone will buy enough games to cover that initial subsidy. The reason why consoles are initially high-priced is because it taps into consumer surplus more efficiently. The console market is essentially divided into two: those who will buy the console as soon as possible and those who will wait. They are two seperate groups and therefore a different price is provided for each. If you want to buy a console early then you pay for that want at a premium, and some people are happy to pay it.
It's true that Microsoft still make a loss but it's less of a loss than they could have made, and it partly allows them to subsidise the inevitable price fall that taps into the second market area of those who wait. So technically consoles do start out at an inflated price because manufacturers don't charge the lowest price they are willing to charge. But if there's demand for a high-priced console on its release date then the price will reflect that. What Nintendo have done is to start charging at the base price, and I can't see the price falling much further. I think this reflects how cut-throat the console market has become, Sega has bitten the dust and Microsoft has moved in leaving Nintendo in a dangerous position; the PS2 and X-box will already be established when the Gamecube comes out and if Microsof and Sony then cut their prices, the Gamecube would be finished as a maninstream console. So they have released it at the lowest price possible.
If Sony and Microsoft are sensible they will cut their prices before the Gamecube comes out. If they don't then they certainly will after it comes out. Hopefully all this competition will push down game prices as well, but that remains to be seen.
Mr. Happy wrote:
The problem with the
> console market at the moment is that Nintendo have broken the mould. The old
> tradition was that all consoles were released at an inflated price and then had
> a price cut after 6 months.
But they dont sell the console at a inflated price. The Xbox costs £300 but I've heard reports saying that the Xbox costs £400 to make. Microsoft are losing money on every Xbox sold.
The same happened with the PS2. They sell them at a reasonable price BUT make no profit or very little. As time goes on technology advances and the cost of production comes down. So the price of the console can drop.
The GC is £160 as thats a reasonable price for the console for the cost of actually producing the console. Maybe the GC costs £250 for Nintendo to make, so even they could be losing money.
Dont forget the Xbox contains a Hard Drive which would easily bump up the price quite alot. Also the amount of heating shielding e.t.c. would be far greater than a GC.
The problem with the
> console market at the moment is that Nintendo have broken the mould. The old
> tradition was that all consoles were released at an inflated price and then had
> a price cut after 6 months.
But they dont sell the console at a inflated price. The Xbox costs £300 but I've heard reports saying that the Xbox costs £400 to make. Microsoft are losing money on every Xbox sold.
The same happened with the PS2. They sell them at a reasonable price BUT make no profit or very little. As time goes on technology advances and the cost of production comes down. So the price of the console can drop.
The GC is £160 as thats a reasonable price for the console for the cost of actually producing the console. Maybe the GC costs £250 for Nintendo to make, so even they could be losing money.
Dont forget the Xbox contains a Hard Drive which would easily bump up the price quite alot. Also the amount of heating shielding e.t.c. would be far greater than a GC.
I agree with Mr. Happy, that there's going to be a massive price drop in all the consoles soon, especially with the GameCube being so cheap. I'm predicting that the X-Box will have a steep price drop a few weeks after the GameCube has been out, possibly to £225 or less. I'm also adamant that Sony are going to drop the Playstation 2 down to £150, but I think that it should be dropped to slightly cheaper than the GameCube, so that it will entice more people to opt for it over the GameCube.
Either way, I have two of them, and I'll be getting the GameCube when it comes out, so I'm happy. If they drop the price of the X-Box, I will be a bit angry, as I paid full price for it, only to have the price slashed a number of weeks later.
Either way, I have two of them, and I'll be getting the GameCube when it comes out, so I'm happy. If they drop the price of the X-Box, I will be a bit angry, as I paid full price for it, only to have the price slashed a number of weeks later.
I played an Xbox and there would have to be a mighty big price drop before I would consider buying it. The games are great quality, but just as good quality can reached elsewhere for a) cheaper and using b) less processing power and with c) a more visually pleasing casing. It boasts such a high processing power but to be honest if it doesn't use it very well what's the point?
Oh, Halo is fun but samey
FPH :)
Oh, Halo is fun but samey
FPH :)
My guess, and Hybrid Valves', is that when the Gamecube comes out Micrsoft will cut the price of the X-box, hopefully to Gamecube levels. The problem with the console market at the moment is that Nintendo have broken the mould. The old tradition was that all consoles were released at an inflated price and then had a price cut after 6 months. Unfortunately for Microsoft Nintendo releasing the GC at an already reduced price of £150 is going to bagger up their sales. It makes the X-box price look inflated, and so people are probably waiting more than they would have. I don't think X-box sales will pick up until the price comes down, and it would make sense for Microsoft to reduce prices before the gamecube is realised because that way the waivering people who can't decide between the two will be pushed towards an X-box, rather than when it's in direct competition with the Gamecube.
The X-box is a great console and has some great games, but Microsoft has got to drop the price. They are pricing themselves out of the core gaming market, namely 12-18 year olds who save up birthday money and pocket money to buy a console. £300 is outside most parents' reasonable price threshold. Maybe Microsoft is aiming for older gamers, but older gamers tend to be more aware of console price fluctuations. And let's face it, it's pretty obvious that the price is going to fall soon. The only people buying X-boxes are people who want one now, regardless of price, and people to whom money isn't that much of an object. Unfortunately for Microsoft the majority of the gaming market is neither of those things.
Game producers need profits to reinvest in new titles and if the X-box doesn't start shifting units it's going to find itself rather starved of games. It has a great release line-up of games, if not the best release line-up ever, but if people aren't buying the consoles those games aren't going to shift and those companies are going to think twice about bringing out more X-box games.
In short, I think a price drop's on the cards.
The X-box is a great console and has some great games, but Microsoft has got to drop the price. They are pricing themselves out of the core gaming market, namely 12-18 year olds who save up birthday money and pocket money to buy a console. £300 is outside most parents' reasonable price threshold. Maybe Microsoft is aiming for older gamers, but older gamers tend to be more aware of console price fluctuations. And let's face it, it's pretty obvious that the price is going to fall soon. The only people buying X-boxes are people who want one now, regardless of price, and people to whom money isn't that much of an object. Unfortunately for Microsoft the majority of the gaming market is neither of those things.
Game producers need profits to reinvest in new titles and if the X-box doesn't start shifting units it's going to find itself rather starved of games. It has a great release line-up of games, if not the best release line-up ever, but if people aren't buying the consoles those games aren't going to shift and those companies are going to think twice about bringing out more X-box games.
In short, I think a price drop's on the cards.
$h@ne0 wrote:
> I've heard that the main reason for the decline in X Box sales is because the
> first few hundred models made actually scratched the game CD's, and loads of
> people took them back.
It dodnt actually effect the game though. The scratches only appeared at the edges of the discs where no data is stored. This was only a small problem and its expected. PS2 had quite a few problems which was reported on Watchdog at launch methinks..completly blown out of proportion of course.
> I've heard that the main reason for the decline in X Box sales is because the
> first few hundred models made actually scratched the game CD's, and loads of
> people took them back.
It dodnt actually effect the game though. The scratches only appeared at the edges of the discs where no data is stored. This was only a small problem and its expected. PS2 had quite a few problems which was reported on Watchdog at launch methinks..completly blown out of proportion of course.
Shaun, if you're still there. Can I have your MSN? I did have it, but all of my addresses got deleated for some reason.
Or you could add me:
[email protected]
Sorry for the off topic post.
Or you could add me:
[email protected]
Sorry for the off topic post.
i knew it wouldnt sell very well.
I hope they drop thier prices soon though.
I hope they drop thier prices soon though.
I've heard that the main reason for the decline in X Box sales is because the first few hundred models made actually scratched the game CD's, and loads of people took them back. Firstly, is Microsoft's company so fragile that they lost so much on just a few hundred consoles? I'm surprised that the display consoles hasn't provoked more interest in the little black box, and actually enticed more people to buy it. Perhaps they should've had more games on display, as the pretty-much biased general public (especially children) are likely to base their opinion on one game, which is possibly bad.
Microsoft doesn't deserve this, and I don't care what any of you say, that's my honest (and very strong) opinion of the entire matter.
Microsoft doesn't deserve this, and I don't care what any of you say, that's my honest (and very strong) opinion of the entire matter.
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