Is $199 the sweet spot for Xbox 360?
16 comments
Filed in News, Xbox 360
According to Microsoft, the answer is yes. They acknowledged today that they were "well aware" of the magic $199 price point for console sales, blaming much of the Wii’s current market dominance on it’s proximity to the $200 level. A $199 Xbox 360, especially in time for the ‘07 holiday season, doesn’t seem out of the question, especially with the Elite holding down the top end of the spectrum. The question is, would a $199 price tag make it that much more appealing? We have a hunch that the answer is yes, but the only way to know for sure is if Redmond actually puts their "sweet spot" theory to the test.
[Via Crunch Gear]
It is abslutely the sweet spot. That is why I have not upgraded my xbox yet. I have been looking at the Wii. I just wish all games would run on all systems. Can’t have everything. Anybody know what else Gran Turismo runs on besides psp?
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definitely agree, I paid full $400 for mine but will all it offers and the inventory of games $199 would be a bargain. Especially if AT&T/Microsoft offers IPTV through it. I already use it to get HD movies and i highly recommend the HD movies in the marketplace.
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I would have to say yes as well but as long as it doesn’t cost another 200 to play some games. That’s why the Wii is holding grown it doesn’t cost the buyer another 200 to play all of their games. Let’s see how they do that 200 barrier.
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The GameCube used to sell for $199, and it did not take off the way Wii does now. The reason Wii is selling like hotcakes is because of the simplicity of game play and the Wii remote thingy. At my local ToyRUs and BestBuy, almost a third of the people who lined up for a Wii early Saturday morning (like 6:30) are housewives! They probably won’t show the same level of enthusiasm for a $199 Xbox 360, if you ask me.
That said, the Wii phenomenon will die down in the next while when people get tired of Wiisports and Wiiplay. So i don’t think MS needs to cut price. PS3, on the other hand, should seriously consider it.
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I don’t know if it’s a “sweet spot” but it’s very clear to me that the lower you price something, the more customers you will have. The question for MS is: Can they make money @ $199 - Since they probably can’t, can the recoup their losses (and ultimately profit) via other means such as paid download or accessories?
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Lowering it would be a good idea about now for MS, with many current 360 owners that had modded boxes are now banned from Xbox Live. Alot of those users will now want new boxes.
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@herry of course it will fade but that happens to every system. MS needs to lower prices as BigE said some of those modded boxes are surely to buy again.
@BigE the hack that moded them has been pacthed, as in another hack released, that allows them to use the system again.
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Of course microsoft will sell more more units. But that will not hurt the nintendo money making machine. Just because something is cheaper does not make it wanted by the public. The reason the wii is selling so much is because of the design and interaction involved in playing games. I still get sore arms from bowling, hehehe. Also the wii caters to a wider demographics. My girlfriend and her daughter play the wii because it is easy to understand (mind you her daughter is three). I put those two in front of a 360, and they were just not as interested as I was. The wii has bonded all of us closer than the 360. Don’t get me wrong, the 360 is awesome. But it will not help them beat the wii. What I think the price cut will do is bump them up to maybe third or fourth place in the console and handheld market. If I am not mistaken, wii is #1, and DS is #2. With Sony products holding the next slots. That price cut will hurt Sony before they even put a dent in Nintendo’s profit. I think if Microsoft play their cards right they will drop the price right before Halo 3 comes out. That will get them bumped to atleast 3rd place. But that is my own two cents, do what you feel with it. Put it in your back pocket for later.
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As a heads up, Redmond is where both Nintendo and Microsoft are based.
It confused me at the end when you write Redmond, because I thought you were talking about Nintendo for a few moments.
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Yes! If I could get an xbox 360 for that price then I’d go get it right now. It just makes it a little bit more better then the ps3.
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They make the most money off the software titles. It would make more sense to get hw in as many hands as possible.
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I’d hit that…
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I payed 426 for mine so, meh
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I’d pay $200 - $250 for a Hard Drive version of the 360. To me, $400.00 is WAY too much for a decently equipped console.
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I would definitely buy this @ $199 because I still have my PS2, though I don’t play it. Buying this would give me an excuse to buy a new TV also ;0)
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Yea $199 is the sweet spot for the Xbox360 but it AINT gunna happen..
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