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It kind of makes sense.
Instead of cutting the price now as they originally planned (they were going to drop this spring), in light of the recent price war in Europe, SCEE would wait till ECTS to regain the price advantage and regain control of the price war in Europe (SCEA has control of the price war in America, and SCEI sort of has control in Japan).
If SCEE were to cut the PS2 price now, they would be vulnerable to that price inertia Nintendo was talking about (people would believe Xbox had more value than PS2) when Microsoft would cut the Xbox price months later (and then Sony would be in the position of nearly cutting the price again, like they are now after the price war got out of control, started by Microsoft instead of Sony, and making the other consoles more competitively priced against PS2--it was going to be Xbox £299, PS2 £199 and GC £149--then it became Xbox £199, PS2 £199 and GC £129...if Sony cut price now, that would make it vulnerable if MS were to cut the price again, so Sony's going to wait instead of doing it now I believe).
This way Sony could cut the PS2's price to £129 soon enough and boost sales, while at the same time forcing MS to cut their price (Sony wants a price war). This £129 on August 30th rumor interestingly coincides with the rumored Xbox price cut to £149.99 shortly after the ECTS show. If both are true, this could make MS change their plans and drop to £129.99 immediately after Sony does, to match PS2's price and keep up (they don't want price to be an inhibiting factor).
This way Sony regains control of the price war, forcing MS to follow suit after Sony's price cut (and not the other way around), and they wouldn't be vulnerable to an Xbox price cut months later. (which would happen if SCEE cut the price now) Xbox would have the price advantage and dictate things. Sony doesn't want that, they want the price advantage and dictate the price war (forcing MS down, not the other way around). And if SCEE cut the price now, Xbox would have more price cut potential (since it would cost more it would be able to cut the price more and make PS2 and GC vulnerable, whereas PS2 & GC would have much less price cut potential and eventually run out of price cuts...say, at £99).
And that would make all three £129. Which could then in turn make Nintendo cut the price to £99.
Would make an interesting second round of the price war in Europe.
And would be an interesting strategy by Sony.
It kind of makes sense.
Instead of cutting the price now as they originally planned (they were going to drop this spring), in light of the recent price war in Europe, SCEE would wait till ECTS to regain the price advantage and regain control of the price war in Europe (SCEA has control of the price war in America, and SCEI sort of has control in Japan).
If SCEE were to cut the PS2 price now, they would be vulnerable to that price inertia Nintendo was talking about (people would believe Xbox had more value than PS2) when Microsoft would cut the Xbox price months later (and then Sony would be in the position of nearly cutting the price again, like they are now after the price war got out of control, started by Microsoft instead of Sony, and making the other consoles more competitively priced against PS2--it was going to be Xbox £299, PS2 £199 and GC £149--then it became Xbox £199, PS2 £199 and GC £129...if Sony cut price now, that would make it vulnerable if MS were to cut the price again, so Sony's going to wait instead of doing it now I believe).
This way Sony could cut the PS2's price to £129 soon enough and boost sales, while at the same time forcing MS to cut their price (Sony wants a price war). This £129 on August 30th rumor interestingly coincides with the rumored Xbox price cut to £149.99 shortly after the ECTS show. If both are true, this could make MS change their plans and drop to £129.99 immediately after Sony does, to match PS2's price and keep up (they don't want price to be an inhibiting factor).
This way Sony regains control of the price war, forcing MS to follow suit after Sony's price cut (and not the other way around), and they wouldn't be vulnerable to an Xbox price cut months later. (which would happen if SCEE cut the price now) Xbox would have the price advantage and dictate things. Sony doesn't want that, they want the price advantage and dictate the price war (forcing MS down, not the other way around). And if SCEE cut the price now, Xbox would have more price cut potential (since it would cost more it would be able to cut the price more and make PS2 and GC vulnerable, whereas PS2 & GC would have much less price cut potential and eventually run out of price cuts...say, at £99).
And that would make all three £129. Which could then in turn make Nintendo cut the price to £99.
Would make an interesting second round of the price war in Europe.
And would be an interesting strategy by Sony.
On the subject, I'd rather see a price reduction on the games front as in my mind they are still overpriced.....yes I know you can get them cheaper off the net and I always do, but that will reduce the prices on the net and will be a benifit to us all!
> On the subject, I'd rather see a price reduction on the games front as
> in my mind they are still overpriced
I agree. No game should be over £40, and should probably be lower than that.
I know that console games cost more because of the licensing deals, but I still feel the price could be lower.
The price of the console is a one-off outlay, while games are an ongoing cost. If PS2 games were the same price as PC counterparts, I think Sony would gain an advantage. I believe people would be happier to pay a higher hardware price if the games were cheaper.
Come the end of this year I should have an Xbox and a Gamecube as well as the PS2 I already have. These price wars rule!
> Why don't you just do Start Run then type "calc" and press
> enter? Much quicker!
Ah yes..so i see..thanks for that!
> Jive wrote:
> On the subject, I'd rather see a price reduction on the games front
> as
> in my mind they are still overpriced
>
> I agree. No game should be over £40, and should probably be
> lower than that.
I agree as well - most people here already have their PS2's so any console reduction will not affect us.
Who makes the most money on each game sold ? Why do the internet retailers like SR charge less for the games ?
The retailers are the ones that make the most - It's approx 25 - 28 quid on a 44.99 game. This is how they are able to offer the 3 for 2 and 2 for 40 / 50 quid deals etc.
The games publishers, led by the likes of Sony set an RRP based on the perceived value of the game and the anticipated sale price. Virgin proved whay could be done 2 or 3 years ago when they reduced all PSX games to 29.99 and refused to charge anymore, the oter retailers soon followed suit and it could easily be done again when they stop being so damned greedy.
Even at the high initial price Sony are subsidising the console in order to get people to buy the machine
How they win in the long term is that they get a share of future game and peripheral sales which recompense them. You could easily get games for less but you would need to pay much more initially.
Games sellers do make a nice profit but rarely the amount referred to earlier. Normally 50% of the games price is retailer profit but no more and remember they have significant costs too. Also remember 17.5% VAT goes straight to the lovely goverment to fund the Opera ( tongue in cheek ).
Personally I believe £ 40.00 is acceptable and am glad the days of £50.00 games seem to be behind us