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-   -   Speculation on X360 price cut (http://archives1.twoplustwo.com/showthread.php?t=447380)

Thanir 07-10-2007 03:54 AM

Speculation on X360 price cut
 
[ QUOTE ]
Wedbush Morgan analyst Michael Pachter has said he expects $50-70 cuts to soon follow across all models of the Xbox 360.

Pachter said in his latest notes to investors on the forthcoming E3 Media Summit that he expects the Xbox 360 core model too fall from $299 to $249, the Xbox 360 premium model to be cut from $399 to $349, and Xbox 360 Elite model to go from $479 to $399.

[/ QUOTE ]

http://www.gamasutra.com/php-bin/new...hp?story=14606

He goes on to state that he expects it "will come no later than at Microsoft’s Tuesday night press conference."

It will be interesting to see if this actually happens.

Dire 07-10-2007 04:32 AM

Re: Speculation on X360 price cut
 
I really don't see this happening. It makes about zero sense with the elites still selling out. And with the new [cheaper to manufacture] processor right around the corner, it makes no sense for them to try to boost sales forcing more production/losses. Not to mention that within a few months there's a few mega games coming, the least of which not being GTA / Halo 3. Those are going to be huge console selling games and lowering prices right now just means they take larger losses - for what's probably going to be a minimal number of users buying a 360 that wouldn't have otherwise.

Just my couple of cents.

DonkeyKongSr 07-10-2007 11:07 AM

Re: Speculation on X360 price cut
 
[ QUOTE ]
Wedbush Morgan analyst Michael Pachter has said he expects $50-70 cuts to soon follow across all models of the Xbox 360.

Pachter said in his latest notes to investors on the forthcoming E3 Media Summit that he expects the Xbox 360 core model too fall from $299 to $249, the Xbox 360 premium model to be cut from $399 to $349, and Xbox 360 Elite model to go from $479 to $399.

[/ QUOTE ]

Mr. Analyst needs to work on his math skills.

jalexand42 07-10-2007 11:25 AM

Re: Speculation on X360 price cut
 
[ QUOTE ]
I really don't see this happening. It makes about zero sense with the elites still selling out. And with the new [cheaper to manufacture] processor right around the corner, it makes no sense for them to try to boost sales forcing more production/losses. Not to mention that within a few months there's a few mega games coming, the least of which not being GTA / Halo 3. Those are going to be huge console selling games and lowering prices right now just means they take larger losses - for what's probably going to be a minimal number of users buying a 360 that wouldn't have otherwise.

Just my couple of cents.

[/ QUOTE ]

If they do it, it has nothing to do with revenue and everything to do with trying to keep Sony from building any momentum.

Microsoft can afford to throw money away with the goal of being the dominant player in high end video games in the next generation. This is obvious from their methods of getting exclusives and trying to get exclusives on other consoles broken.

Should be interesting. Sony seems to mostly have their heads up their asses now.

Jeremy517 07-10-2007 12:29 PM

Re: Speculation on X360 price cut
 
Shoprite already has the premium listed at 350, so there might be some truth to the rumor.

Eitehr way, the MS E3 press conference is tonight at 8:30, so we'll find out then.

underthegun662 07-10-2007 06:30 PM

Re: Speculation on X360 price cut
 
can someone please help me. i was gonna wait until halo 3 to come out and then buy the 360. but if they cut the price, ill go ahead and buy it now. my question is whats the difference between the three xbox systems? thanks

4 High 07-10-2007 06:36 PM

Re: Speculation on X360 price cut
 
I dont think this will have much effect. Alot of people have been waiting around for Sony to lower their price to get a PS3. I dont think i have heard or read a single person saying they are waiting for the 360 to lower its price.

Dire 07-10-2007 06:53 PM

Re: Speculation on X360 price cut
 
[ QUOTE ]
my question is whats the difference between the three xbox systems? thanks

[/ QUOTE ]

The main difference between all three is in the hard disk space. The core has no HD, the premium has a 20GB and the elite has a 120. You will fill 20GB sooooooooo fast with the Live marketplace, so I'd strongly recommend the elite. It's also a different color (black) and comes with HDMI.

batmanoflove 07-10-2007 11:15 PM

Re: Speculation on X360 price cut
 
[ QUOTE ]
I dont think this will have much effect. Alot of people have been waiting around for Sony to lower their price to get a PS3. I dont think i have heard or read a single person saying they are waiting for the 360 to lower its price.

[/ QUOTE ]


I'm truely waiting the 360 to drop their price.

Jeremy517 07-11-2007 01:20 AM

Re: Speculation on X360 price cut
 
No price cut announced at the MS E3 presentation. In fact, other than an RE5 surprise, the whole presentation was pretty weak.

Full-Metall 07-11-2007 01:25 AM

Re: Speculation on X360 price cut
 
Microsoft E3 Keynote (gizmodo)
It's interesting that xbox 360 marketplace is getting HD content that was only supposed to be on blu-ray. Such as Disney movies. Canada and Europe will eventually have access to the marketplace.

Dire 07-11-2007 01:55 AM

Re: Speculation on X360 price cut
 
I wonder if it's poor company strategy to focus so heavily on Halo 3. I know the climax of my presentation would be focused on GTA IV, and particularly the fact that only the 360 version will feature exclusive additional content. I don't see Halo 3 attracting millions of new users - but GTA IV with exclusive content seems like something that really could get millions of new users.

I just don't see Halo 3 being anywhere near as huge as they seem to be expecting. The demo/'beta' was extremely underwhelming gameplay wise and looked just terrible for a next gen game, even more so for one that's supposed to show what the 360 is capable of.

Ah well. We'll see. Speculation is fun!

Thanir 07-11-2007 01:59 AM

Re: Speculation on X360 price cut
 
[ QUOTE ]
No price cut announced at the MS E3 presentation. In fact, other than an RE5 surprise, the whole presentation was pretty weak.

[/ QUOTE ]
Yeah I was kind of disappointed in the speech. There wasn't anything really new shown other than games that we already knew about. Canadians and Europeans should be happy they are getting HD content via the MP. Also they announced a public beta multiplayer for Call of Duty 4...its http://www.charlieoscardelta.com Nothing is really there yet other than registering for their beta forum.

One thing that made me laugh wass they added new sku to the lineup...a Special Edition Halo 360. lol

Overall it was a pretty underwhelming keynote speech. Oh they did show some cool new arcade games coming out, including Wing Commander Arena and the new Madden looked like it played better than the previous 'next gen' versions.

TheSalche 07-11-2007 09:00 AM

Re: Speculation on X360 price cut
 
[ QUOTE ]
I wonder if it's poor company strategy to focus so heavily on Halo 3. I know the climax of my presentation would be focused on GTA IV, and particularly the fact that only the 360 version will feature exclusive additional content. I don't see Halo 3 attracting millions of new users - but GTA IV with exclusive content seems like something that really could get millions of new users.


[/ QUOTE ]

I don't know why you think another game from the biggest console FPS franchise would be so much less attractive that the biggest city-roving RPG shoot em up (dunno good category for GTA) franchise. Both are amazing franchises, but Halo 3 has just as much chance to attract more new users as GTA:IV does ... especially since Halo 2 sold about 8 million copies and GTA:SA sold just under 2 million.

Microsoft knows there are a lot (several hundred thousand at least) Halo 2 players who haven't bought a 360 yet, so pushing Halo 3 is important to them in terms of selling more consoles, which they will have no trouble with this holiday season because they've got a very strong (arguably strongest) holiday lineup.

As for the price cut, it's not gonna happen (as much as I want it to). Microsoft just cut the cost of making each console last November, so now they are actually profiting off each 360 sale. They have stated that they want the branch that makes the console to be in the green by the end of the fiscal year. Oh, and they just took at $1.2 billion loss because of the 3 red light problem.

Soul Daddy 07-11-2007 09:34 AM

Re: Speculation on X360 price cut
 
[ QUOTE ]
GTA:SA sold just under 2 million.

[/ QUOTE ]
Is this an XBox only number? Why would that be relevant? It was basically a PS2 game last gen. Dire's point was that by shifting public perception that the 360 version of IV is the definitive one, it could drive more sales. And he's right. Combined sales of SA double those of Halo 2.

TheSalche 07-13-2007 08:52 AM

Re: Speculation on X360 price cut
 
Combined sales don't really matter. I highly doubt that GTA:IV will outsell Halo 3, and since this is a gambling forum I'd be willing to make a wager on it.

4 High 07-13-2007 10:35 AM

Re: Speculation on X360 price cut
 
Are they coming out with a watered down version on PS2? Even if it is just PS3 and 360, i would bet it outsells Halo 3. 90% or so of PS3 owners will get it and over 50% of 360 owners will get it as well i would assume. I guess it could go either way.

Soul Daddy 07-13-2007 10:39 AM

Re: Speculation on X360 price cut
 
Yeah, it will be close if combined sales, which apparently don't matter, are considered. Halo's attachment rate will be ridiculous though.

TheSalche 07-13-2007 11:12 AM

Re: Speculation on X360 price cut
 
The combined sales of SA are unfair to compare to Halo 2, when you are using that statistic to make predictions about ONLY the 360 version of GTA:IV. That was my point there.

As for combined sales for GTA:IV vs. Halo 3, that will be close, GTA:IV will probably win it if people start to buy PS3s.

Soul Daddy 07-13-2007 11:24 AM

Re: Speculation on X360 price cut
 
Salche,

I was simply trying to illustrate that the fan base for the GTA series is significantly larger, but mostly associates with the PS line. I would think a grand campaign aimed at letting them know the series is going to be better on the 360 would drive more system sales than Halo 3. I am also operating under the assumption that a very large number of Halo 3 buyers are early adopters, i.e. hardcore.

buckslayer80 07-13-2007 05:30 PM

Re: Speculation on X360 price cut
 
[ QUOTE ]
The combined sales of SA are unfair to compare to Halo 2, when you are using that statistic to make predictions about ONLY the 360 version of GTA:IV. That was my point there.

As for combined sales for GTA:IV vs. Halo 3, that will be close, GTA:IV will probably win it if people start to buy PS3s.

[/ QUOTE ]

If history repeats itself GTA4 is going to KILL Halo 3.

http://en.wikipedia.org/wiki/List_of...ng_video_games

GTA occupies 3 of the top 4 spots on the PS2 with the 2 of the GTA games selling over 12 million copies. That's no freaking joke. Only Super Mario Bros. can hang with thos enumbers. Halo 2 is only listed as selling 8 million.

Dire 07-13-2007 06:20 PM

Re: Speculation on X360 price cut
 
The thing here is the demographic. Who is Microsoft trying to appeal to when this over the top advertising of Halo 3? If somebody wasn't particularly interested in Halo 2, why would they be rushing out to buy a 360 for Halo 3? On the other hand, if somebody did enjoy Halo 2 - there's about a 100% chance they'll be getting a 360, advertising or not - and that just applies to the few don't already own a 360!

Sure, Halo 3 will definitely convince some of the undecided market - but not even remotely as much as GTA IV has the potential to. I mean it seems like so many people are waiting on Metal Gear Solid 4, Final Fantasy and GTA IV to go buy a PS3. Microsoft doesn't even seem to be bothering to try to work this audience. They're the system GTA IV is being developed IV and will be the only one with exclusive content, they have Sakaguchi and the majority of talent behind Final Fantasy making new exclusives while any PS3 Final Fantasies will only be Final Fantasy, and they also have a whole hoard of other enticing exclusives.

Instead of going head first after this huge undecided market - they just keep spamming Halo 3 to a demographic that, for the most part, they already 'have'. This is what I really don't understand.

Dire 07-13-2007 06:31 PM

Re: Speculation on X360 price cut
 
[ QUOTE ]
[ QUOTE ]
The combined sales of SA are unfair to compare to Halo 2, when you are using that statistic to make predictions about ONLY the 360 version of GTA:IV. That was my point there.

As for combined sales for GTA:IV vs. Halo 3, that will be close, GTA:IV will probably win it if people start to buy PS3s.

[/ QUOTE ]

If history repeats itself GTA4 is going to KILL Halo 3.

http://en.wikipedia.org/wiki/List_of...ng_video_games

GTA occupies 3 of the top 4 spots on the PS2 with the 2 of the GTA games selling over 12 million copies. That's no freaking joke. Only Super Mario Bros. can hang with thos enumbers. Halo 2 is only listed as selling 8 million.

[/ QUOTE ]

While this is definitely important to keep in mind, and a big reason for my confusion regarding Microsoft's decision to focus so heavily on Halo 3 while seemingly disregarding some of their other titles - such as GTA IV, you need to keep things in context. Last generation, the PS2 had 5:1 the installed userbase of the XBox. GTA only outsold Halo 2 by a 1.5:1 margin. This generation, the roles have nearly reversed.

DonkeyKongSr 07-13-2007 06:42 PM

Re: Speculation on X360 price cut
 
[ QUOTE ]
This is what I really don't understand.

[/ QUOTE ]

Marketing is what you don't understand.

Dire 07-13-2007 07:57 PM

Re: Speculation on X360 price cut
 
[ QUOTE ]
[ QUOTE ]
This is what I really don't understand.

[/ QUOTE ]

Marketing is what you don't understand.

[/ QUOTE ]

Wow, thanks for clearing that up!

Now in all of your wisdom, please enlighten me. Why is it a smart idea to target a demographic that already has a high adapatation rate while [relatively] ignoring another very fluid demographic that has virtually no adaptation rate?

DonkeyKongSr 07-13-2007 10:24 PM

Re: Speculation on X360 price cut
 
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
This is what I really don't understand.

[/ QUOTE ]

Marketing is what you don't understand.

[/ QUOTE ]

Wow, thanks for clearing that up!

Now in all of your wisdom, please enlighten me. Why is it a smart idea to target a demographic that already has a high adapatation rate while [relatively] ignoring another very fluid demographic that has virtually no adaptation rate?

[/ QUOTE ]

Sorry, I typed out many, many different answers and deleted them all. I thought I was getting too complex or whatever. I work in advertising at a company that has a video game account. I know this stuff. Let's see if I can keep this simple:

Marketing Halo 3 has nothing to do with marketing other games. Microsoft wants Halo 3 to be the most popular FPS of all time. They want to keep feeding the hype machine to make sure that happens. And thusly, XBox 360 will remain the premier FPS console. They'll find other games to hype the hell out of to get that other audience you are talking about.

In addition, assuming you have a consumer base that is a lock is the most retarded thing you can do in marketing. Think Coca Cola. They spend out the ass, but it's not wasted money. You need to remain top of mind. You may have loyal customers, but if you can convince them to take action quicker, you improving your bottom line ("Oooh, I am running low on Coke. I should go to the store."). Microsoft doesn't want their audience to think, "Ah, I'll get it someday." They want "I'm going to get it on launch day and tell all my friends to get it so we can play on Live."

Bad idea #2 is assuming there is no other audience out there than your regular audience. Not everyone jumps into a series from edition 1. There are plenty of people that will start on Halo 3 because of the hype they've heard. Plus, this will be the first Halo for XBox 360. Not everyone with a 360 owned an original XBox. There still are many, many people that haven't played Halo that will love Halo 3 if you let them know it's there.

Sorry for the short answer earlier, none of my other answers were as concise as this one.

Thanir 07-13-2007 10:55 PM

Re: Speculation on X360 price cut
 
I've never owned, nor really played any of the Halo games. I have watched a friend play once, but I have always been a computer fps guy, and hated console fps, until I got my 360. When H3 comes out I'll be buying it to play as I now appreciate fps games on consoles. I am looking more forward to GTA and RE5 more though.

Dire 07-14-2007 01:31 AM

Re: Speculation on X360 price cut
 
[ QUOTE ]
I know this stuff. Let's see if I can keep this simple:

Marketing Halo 3 has nothing...

[/ QUOTE ]

Thanks, much more informative. [img]/images/graemlins/smile.gif[/img] Now it definitely makes alot of sense why they'd be pumping Halo 3, and hard especially with it being tried and true - but there's still the other part of the question. Why in the world AREN'T they pumping GTA IV, particularly with the exclusive content? It almost seems like an aside - Halo 3, Halo 3, Halo 3, Halo 3, we'll also have GTA IV.. with some extra content or something, Halo 3, Halo 3, Halo 3.

pikachu 07-14-2007 04:24 AM

Re: Speculation on X360 price cut
 
Microsoft makes Halo 3, only available on X360...Rockstar makes GTA IV, it is available on both PS3 and X360...

DonkeyKongSr 07-14-2007 01:29 PM

Re: Speculation on X360 price cut
 
[ QUOTE ]
Microsoft makes Halo 3, only available on X360...Rockstar makes GTA IV, it is available on both PS3 and X360...

[/ QUOTE ]

Exactly. It's Rockstar's advertising budget to spend. Microsoft needs to sell consoles and their games and hope their 3rd parties hype their stuff, too. Microsoft's efforts toward marketing GTA on the 360 was likely to push them to include exclusive content to make the 360 version more desirable.

Also, wait till closer to release of GTA. Ads will be everywhere. The last 2 games had a ton of ads.

Soul Daddy 07-14-2007 02:17 PM

Re: Speculation on X360 price cut
 
[ QUOTE ]
[ QUOTE ]
Microsoft makes Halo 3, only available on X360...Rockstar makes GTA IV, it is available on both PS3 and X360...

[/ QUOTE ]

Exactly. It's Rockstar's advertising budget to spend. Microsoft needs to sell consoles and their games and hope their 3rd parties hype their stuff, too. Microsoft's efforts toward marketing GTA on the 360 was likely to push them to include exclusive content to make the 360 version more desirable.

Also, wait till closer to release of GTA. Ads will be everywhere. The last 2 games had a ton of ads.

[/ QUOTE ]
I don't know if you guys are missing the point or simply glossing over it. Software sales are not the issue here, or at least not directly. GTA will be a system seller for one of these two companies. It's not really Rockstar's responsibility to make sure that people buy a 360 to play the definitive version. I'm sure they're just as happy if people play the PS3 version. Microsoft paid a lot of money to have exclusive content and they really should be pushing this information out to the mainstream, and E3 is pretty much the ultimate opportunity to reach that audience.

But yes, there is obviously still time to do this. It just seems a bit curious to me is all.

Dire 07-14-2007 02:47 PM

Re: Speculation on X360 price cut
 
[ QUOTE ]
Microsoft's efforts toward marketing GTA on the 360 was likely to push them to include exclusive content to make the 360 version more desirable.

[/ QUOTE ]

Actually I think the $50mil MS sent to Rockstar was the incentive for the exclusive content. But like mentioned above - I'm not at all confused by their strategy re:software sales. It's the hardware side of the game. GTA IV has the potential to be a game that really brings alot of the undecided market to one side or the other.

MS obviously realizes the value of exclusive content for GTA or they wouldn't have been willing to shell out so much money for it, but at the same time they're not going particularly out of their way to advertise the exclusive content.

4 High 07-14-2007 02:59 PM

Re: Speculation on X360 price cut
 
I wonder why Sony didn't just call Rockstar and offer 60 million for the same stuff, or offer more to make it a timed exclusive. Or perhaps they did and Rockstar was not interested.

Dire 07-14-2007 03:12 PM

Re: Speculation on X360 price cut
 
[ QUOTE ]
I wonder why Sony didn't just call Rockstar and offer 60 million for the same stuff, or offer more to make it a timed exclusive. Or perhaps they did and Rockstar was not interested.

[/ QUOTE ]

I'd expect there was alot of behind the scenes stuff going on. Sony publically stated this shortly after MS announced exclusivity: "There's no question that having the Grand Theft Auto franchise helped us a lot and helped us sell some units, but I don't think the battle would be any different with or without Grand Theft Auto." Basically snubbing/disregarding the company that developed your best sellers doesn't seem like anything short of bitterness mixed with hubris.

Blarg 07-14-2007 03:23 PM

Re: Speculation on X360 price cut
 
True on one level, but on the other, they're right that the essential battle rages on regardless of which properties they may land or have exclusives on. True enough there, but what they're not acknowledging is the breathing room to get established in the market that a good property gets you. The money doesn't hurt, either. Even a giant like Sony doesn't like to lose more than it has to.

TheSalche 07-16-2007 02:34 AM

Re: Speculation on X360 price cut
 
[ QUOTE ]
[ QUOTE ]
The combined sales of SA are unfair to compare to Halo 2, when you are using that statistic to make predictions about ONLY the 360 version of GTA:IV. That was my point there.

As for combined sales for GTA:IV vs. Halo 3, that will be close, GTA:IV will probably win it if people start to buy PS3s.

[/ QUOTE ]

If history repeats itself GTA4 is going to KILL Halo 3.

http://en.wikipedia.org/wiki/List_of...ng_video_games

GTA occupies 3 of the top 4 spots on the PS2 with the 2 of the GTA games selling over 12 million copies. That's no freaking joke. Only Super Mario Bros. can hang with thos enumbers. Halo 2 is only listed as selling 8 million.

[/ QUOTE ]

Considering how many more 360's there are compared to PS3's, the old statistics are nearly worthless. The best number you can get from those old console stats is attachment ratio (i.e. how many PS2 owners bought GTA:X).

Halo 3 will outsell GTA:IV on the 360 period. Now I think that they are pushing Halo 3 more because it will sell more consoles and that in turn will sell more GTA:IV. Why? Well if I weigh my console buying options, and lets say I am your usual gamer, Male 16-24 demographic, what do I want to do? Blow [censored] up, kill aliens, etc. What are my choices here. In a narrow sense let's say I'm deciding between a game like Killzone 2 or Haze (dunno much about the PS3 FPS, somebody help me out here) or Halo 3. If microsoft can get me to WANT Halo 3 more than those PS3 games, I'll buy a 360. Oh guess what? Now I'll buy GTA:IV for the 360 because I'm not shelling out another $500 for a PS3.


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