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Ever since Microsoft announced the price reduction for Xbox, it seems that everyones defence mechanisms are kicking in.
"Har har! Billy-boy's had to drop the price because no-one wants his stupid console!"
"It won't help because people will wonder why the price dropped so quick if it's that good!"
"Xbox is crumbling!"
"It's blown up in Microsoft's face!"
It's all wishful thinking - outbursts of immature excitement, driven by the rabid desire to see Microsoft fail at *something*.
Anyone who's read previous posts of mine knows that I don't even come close to being a fan of Microsoft, and I too would love to see them fail at something.
I also believe that this price drop has come about purely because Xbox was not selling at all well in any territory when compared, in particular, to PlayStation 2. There is no way that Microsoft would have dropped the price by one third out of the kindness of their heart this soon after release. However they try to gloss over it, this has happened purely because they were feeling the pressure of PS2's continued success and the imminent arrival of the Gamecube in the UK and European markets.
The biggest indicator that this price-cut was sudden (i.e. forced and not pre-planned) is the distinct lack of advertising so far to announce it. It has been all over the news, but there hasn't been one official Microsoft advertisement. Looking through the newspaper today, the only mention I can see, apart from the main news article, is a small box-out at the bottom of a PC World advert. Had it been pre-planned, there would surely have been major adverts ready to run.
So yes, by all means chuckle to yourself and gloat briefly. But then look at it seriously. Do you honestly believe, deep down, that it's all over for Microsoft? Or is it just nervous laughter, because you're not sure what's going to happen next?
The Xbox is most definitely the most powerful of the three consoles. I personally don't think that the difference is as big as some people would have you believe, but nevertheless the fact remains.
People may well wonder why the price has dropped so soon after launch, but that doesn't change the fact that the Xbox now becomes a much more attractive prospect for many people.
The move certainly puts pressure on Sony, as both Xbox and PS2 are vying for an almost identical area of the gaming market. Sony are fairly certain to hit back hard, possibly with a drop in the PS2's price to around the £150 to £170 range. Fortunately, the area of the market for which the two companies are battling is large and profitable, thanks mainly to Sony's efforts with the PS1. I believe that the PlayStation image and brand - not to mention the already commanding lead in terms of installed user base - is large enough to see it through reasonably comfortably, even if that turns out not to be as market leader in the longer term.
Another factor is that Sony are considerably further along in their plans for online gaming than anyone else. Not only that, but their online plans are larger than Microsoft's, including secure online shopping and transactions, and less limiting (Xbox requires broadband, PS2 will not). With its USB and FireWire connections, plus the expansion bay, PS2 would also seem to offer more potential than the other platforms. It will take a gargantuan effort for Microsoft to overcome that, but that's not to say it can't be done.
All of this could easily put more pressure on Nintendo, too. Although primarily aiming at a different area of the market (let's call it the 'family market' rather than the usual 'kiddie market'), the prices of the machines are now so close as to be almost irrelevant when making a purchasing decision. Whereas a short time ago the price of Gamecube made it possibly the most attractive prospect for many first-time console buyers, this is no longer the case; a maximum difference of a measly £35 will not deter most people. Sure, it's almost the price of a game, but people don’t tend to look at it in those terms. In my experience, rightly or wrongly, people tend to think more along the lines of "that's a little more expensive, therefore it must be better". With Xbox at £299, the major leap in price would have been a deterrent for many - but £35 is far more palatable.
With recent game sign-ups such as Resident Evil and a string of other adult-themed games, it would appear the Nintendo are attempting to break away from the more-or-less exclusively 'family oriented' mould with which people have associated them for the last two decades. While Nintendo aren't exactly strapped for cash, they're not known for expensive and bold advertising campaigns, which Sony and Microsoft most definitely are. It's not inconceivable that Microsoft's price-cut, coupled with the advertising battles which will follow, could be the move to push Nintendo back into that 'family' niche. Which wouldn't necessarily be a bad thing, as it's a market which has served them well, and one in which they have little if any competition. I may be wrong (it has been known...), but I don't think that Nintendo have either the will or desire to stand toe-to-toe and trade blows with Sony and Microsoft. Why risk it, when you can corner your own little market and make a fortune?
Basically what I'm saying is that this price cut could be exactly what the Xbox needs to kick sales into gear, and I think that Sony, Nintendo and their respective fans should be… not exactly concerned, but… cautious that they don't laugh too hard or for too long. Because it is quite possible, however unlikely it may seem, that this could be Microsoft's 'moment'. It may change nothing, and we can all carry on as before. But it might - just might - change everything.
Ever since Microsoft announced the price reduction for Xbox, it seems that everyones defence mechanisms are kicking in.
"Har har! Billy-boy's had to drop the price because no-one wants his stupid console!"
"It won't help because people will wonder why the price dropped so quick if it's that good!"
"Xbox is crumbling!"
"It's blown up in Microsoft's face!"
It's all wishful thinking - outbursts of immature excitement, driven by the rabid desire to see Microsoft fail at *something*.
Anyone who's read previous posts of mine knows that I don't even come close to being a fan of Microsoft, and I too would love to see them fail at something.
I also believe that this price drop has come about purely because Xbox was not selling at all well in any territory when compared, in particular, to PlayStation 2. There is no way that Microsoft would have dropped the price by one third out of the kindness of their heart this soon after release. However they try to gloss over it, this has happened purely because they were feeling the pressure of PS2's continued success and the imminent arrival of the Gamecube in the UK and European markets.
The biggest indicator that this price-cut was sudden (i.e. forced and not pre-planned) is the distinct lack of advertising so far to announce it. It has been all over the news, but there hasn't been one official Microsoft advertisement. Looking through the newspaper today, the only mention I can see, apart from the main news article, is a small box-out at the bottom of a PC World advert. Had it been pre-planned, there would surely have been major adverts ready to run.
So yes, by all means chuckle to yourself and gloat briefly. But then look at it seriously. Do you honestly believe, deep down, that it's all over for Microsoft? Or is it just nervous laughter, because you're not sure what's going to happen next?
The Xbox is most definitely the most powerful of the three consoles. I personally don't think that the difference is as big as some people would have you believe, but nevertheless the fact remains.
People may well wonder why the price has dropped so soon after launch, but that doesn't change the fact that the Xbox now becomes a much more attractive prospect for many people.
The move certainly puts pressure on Sony, as both Xbox and PS2 are vying for an almost identical area of the gaming market. Sony are fairly certain to hit back hard, possibly with a drop in the PS2's price to around the £150 to £170 range. Fortunately, the area of the market for which the two companies are battling is large and profitable, thanks mainly to Sony's efforts with the PS1. I believe that the PlayStation image and brand - not to mention the already commanding lead in terms of installed user base - is large enough to see it through reasonably comfortably, even if that turns out not to be as market leader in the longer term.
Another factor is that Sony are considerably further along in their plans for online gaming than anyone else. Not only that, but their online plans are larger than Microsoft's, including secure online shopping and transactions, and less limiting (Xbox requires broadband, PS2 will not). With its USB and FireWire connections, plus the expansion bay, PS2 would also seem to offer more potential than the other platforms. It will take a gargantuan effort for Microsoft to overcome that, but that's not to say it can't be done.
All of this could easily put more pressure on Nintendo, too. Although primarily aiming at a different area of the market (let's call it the 'family market' rather than the usual 'kiddie market'), the prices of the machines are now so close as to be almost irrelevant when making a purchasing decision. Whereas a short time ago the price of Gamecube made it possibly the most attractive prospect for many first-time console buyers, this is no longer the case; a maximum difference of a measly £35 will not deter most people. Sure, it's almost the price of a game, but people don’t tend to look at it in those terms. In my experience, rightly or wrongly, people tend to think more along the lines of "that's a little more expensive, therefore it must be better". With Xbox at £299, the major leap in price would have been a deterrent for many - but £35 is far more palatable.
With recent game sign-ups such as Resident Evil and a string of other adult-themed games, it would appear the Nintendo are attempting to break away from the more-or-less exclusively 'family oriented' mould with which people have associated them for the last two decades. While Nintendo aren't exactly strapped for cash, they're not known for expensive and bold advertising campaigns, which Sony and Microsoft most definitely are. It's not inconceivable that Microsoft's price-cut, coupled with the advertising battles which will follow, could be the move to push Nintendo back into that 'family' niche. Which wouldn't necessarily be a bad thing, as it's a market which has served them well, and one in which they have little if any competition. I may be wrong (it has been known...), but I don't think that Nintendo have either the will or desire to stand toe-to-toe and trade blows with Sony and Microsoft. Why risk it, when you can corner your own little market and make a fortune?
Basically what I'm saying is that this price cut could be exactly what the Xbox needs to kick sales into gear, and I think that Sony, Nintendo and their respective fans should be… not exactly concerned, but… cautious that they don't laugh too hard or for too long. Because it is quite possible, however unlikely it may seem, that this could be Microsoft's 'moment'. It may change nothing, and we can all carry on as before. But it might - just might - change everything.