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GameStop: 360 Cuts Will Drive Huge New Sales

Recent speculation from analysts have cast Microsoft's 360 price cut as increasing sales of the console only modestly. Despite the fact that the Xbox 360 Arcade SKU has undercut Nintendo's Wii to become the cheapest current generation system, Wedbush Morgan analyst Michael Pachter expected the decrease to drive only an additional 15-20 percent sales over the next twelve months, while EEDR analyst Jesse Divnich has stated that the console can figure on only a 20-30 percent bump in the short term.

But some of GameStop's top executives are telling a different story. Speaking exclusively to Edge at GameStop Expo in Las Vegas, the retailer's senior vice president of merchandising Bob McKenzie and executive vice president of merchandise and marketing Tony Bartel feel that, at least for GameStop, such estimates are overly conservative.

According to McKenzie, "It's more in the range of a two to fourfold increase. It's significant.'

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CViper3746d ago

Everyone sees results for sales of the PS3--then writes a story on it.

fufotrufo3746d ago

well why don't you go and post on your ps3 20k+ huge monthly advantages results threads!

BIoodmask3746d ago (Edited 3746d ago )

if CViper will troll a 360 thread. Then I see results when he comments about the PS3 in a non PS3 related article.

YoshiMeetsU3746d ago

Well considering there has been no hard sales data since the price drop just happened I think all we can do is speculate.

CViper3746d ago (Edited 3746d ago )

Pot, Kettle. Kettle, Pot.

Stop getting your feelings all hurt, if you don't like what Im saying. Ignore it.

There isn't going to be some sales boost that will overtake the ps3. And we can revisit this after next NPD and the NPD after that, see you then boys. All opposing comments don't necessarily mean trolling, a fine line, but you need to revisit the logic when calling people out especially considering your history here Bloodmask. Its funny that the worst offenders of trolling/fanboys here on N4G are the most stringent on the rules/crying to mods like you are the hall monitor.

Just because you rss feed stories and post them on n4g doesn't mean that you are some sort of Saint here all of a sudden. Anyone who has been on N4G for a while knows exactly what yer about. Don't bother me, I wont bother you. I can comment on any console/pc/section/stories I want to. Especially when I own them.

beoulve3746d ago

CViper, he can post negative BS article about PS3 but you cant post negative comment about XBOX 360. hypocrite

silverchode3746d ago

you still think the ps3 outsells the 360 by 20k? that was long ago now its up to around +100k

Xwow20083746d ago (Edited 3746d ago )

your first comment is right,ps3 sales are increasing more than X360. alot of people(xbox fans) say x360 will sell a lot because of the price cut.

will a good price is a good thing for consumer but the price word is not enough to increase the sales there is another word along side with price and it,s VALUE.

the good price with a good value is what to get the consumer to hurry and buy.

xboxarcade:-
price:(200$) good price
value: no hard disk,wired controllers,u have to pay to play online(like the other sku,s,last gen format(again like other sku,s)
very low value if not there is no value

the consumers these days want to buy a nextgen machine(that play games,nextgen quality movies,hard drive for video and audio content,a contact to the net(web browser),they hear about a wireless devises So they don,t wires for controllers,and alot more.

xbox arcade has no value at all.
and the pro sku and elite have a good value.
but if u look at the 60GB xbox 360(350$)if u add a 50$ and buy a ps3 then u will get a 20GB more and blu-ray drive for games and movies, build in wifi,web browser,wireless controllers with rechargeable battery,bluetooth 2.0 for controlers,headset,mice and keyboards, a support for third party hard drives,free online.

sorry for saying this xbox fans but the ps3 has a good price with excellent VALUE for that it will sell more than xbox360 in the holidays.

CViper3746d ago (Edited 3746d ago )

http://www.amazon.com/gp/be...

Ps3 is #5-6 for the year and NPD has been right about Ps3's sales. The 360, with its new price. Isnt' in the top 10, or 20 It just made it to 30 something for the first time this year.

Keep thinking this price cut is going to perform a miracle, it wont. There is no value in the price drop thats a better value than the ps3 at the moment.

MNicholas3746d ago (Edited 3746d ago )

it will still be less than the PS3's numbers since the PS3's sales are 35% more than current 360 numbers.

If the 360's sales increase 2-4x then it will be rivaling the Wii. My own research tells me that the 360,due exclusively to the $199 price, will sell really well this christmas and may even outsell the Wii.

The PS3 will do reasonably well but the 360's install base will recapture much of the ground lost to the PS3. Is the PS3 a better machine? Yes. Is it a better value for most consumers? Yes.

However the American market has produced business gems like Rent-A-Center which has succeeded with precisely the same consumer segment that will make 360 a success this winter. Low up-front costs but continuing life-time costs. Those who doubt this statement ought to do a bit of research regarding the success of the credit card industry. Americans are constantly going into debt for impulse purchases and happily pay a lifetime of minimum payments rather than make smart choices up front. Gates isnt a billionaire for nothing. Consumers will get what they deserve.

CViper3746d ago

The demand is not there for the 360 to push it past the Wii. This holiday will be yet another slaughter for all consoles/handhelds outside of the Wii/Psp/DS worldwide. You have a system selling on average 400k+ units in AMERICA ALONE. While the ps3 and the 360 stay around 100-200k.

I don't see how people come to the conclusion that PRICE ALONE is going to significantly change things, when it was NEVER a REAL issue for the 360 in the first place. An ignorant consumer buying on price alone, would buy a arcade\core unit. That person has bought that unit since launch almost 3 years ago. Yes, 199 is a great price when it has a great value. Like the PS2. The 360 at 199 has 0 value compared to the Ps2, or the Wii. Its not something that friends see other friends playing at parties. The 360 is not something that women get together and have "360" nights together. The 360 doesn't have a myriad of G rated titles for soccer moms to 1st graders.

The ps3 is still out performing the cheaper 360 in its already price dropped regions, and the Wii is out performing the ps3.

We will find out if this price drop will do anything, but if it was ALREADY CHEAPER THAN THE PS3 in the first place, why should a price drop be significant if the more expensive PS3 is already selling more? Is that not an indicator of desire?

MNicholas3746d ago (Edited 3746d ago )

so demand (the total number of people who want a product) for the 360 won't change but lower price will begin to tap into the sweet spot that fulfills existing demand while staying close to break-even, at least in the US market.

To explain how demand works, if, hypothetically, a console has a total demand of 500k/month, then at a high price, you might sell just 100k/month and at a lower price you might sell 300k/month. If you gave them away for free you'll fulfull all the demand and sell 500k/month.

The PS3 and Wii both have higher total demand (as evidenced by price to sales) but the PS3, in particular, is not priced at the sweet spot since manufacturing costs are still high.

In other words, the 360 is entering it's peak sales growth phase whereas the PS3 is still about a year away from it's own peak sales growth phase.

pumpkinpunker3746d ago (Edited 3746d ago )

right now there are 4 popular SKUs for the 360 on Amazon: the elite, the 20 gb, the new 60 gb, and the arcade model. therefore the sales are spread out more for the 4 different units compared to the 80 GB PS3 which is the only PS3 that Amazon sells.

Therefore, resulting in lower rankings for each different 360 console on Amazon compared to the one PS3 sku. Glad I could clarify things.

This is big news for the 360 when the president of the largest gaming store in North America says that the price cut has tripled sales. anyway, why are sony fanboys always reading and commenting on 360 articles anyways? we don't want your crappy console. go watch a blu-ray movie or something.

BoBo333746d ago

I can't believe you just used Amazon as an accurate sales barometer. lol

I've got some "speculation" to add to the conversation. You are about to see a massive migration of ps2 owners to the 360 in the next year. You will see the "death" of the ps2 next year, when development stops on the platform.

You will see the PS3 BRUTALLY outsold in N.A. this holiday season.

Immaculate3746d ago

Value in the ps3? For the audience that the $199 360 is built for, I would say that the ps3 is consumer rape. The people that will buy the Arcade 360 will likely be former ps2 owners. The same people who bought the ps2 for $199, and are the majority of folks who don't have an hdtv or hi-speed internet. Do you realize that these same people, if they opted for a $400 ps3, would be paying for probably $300 worth of hardware that they don't need? That's not value, that's consumer rape.

butterfinger3746d ago

Of course using Amazon as a barometer for sales is stupid, but every 360 child (like yourself) promotes their fake numbers each month until NPD data showe otherwise, often the same as Amazon.

@ Immaculate - The people that were buying the PS2 for $199 were still people that had a decent chunk of change at that point in time. You are just plain ignoring facts and inflation if you believe that is what will bring PS2 kids to the 360.

That being corrected, the 360 should undoubtedly see a sales spike due to the price drops across the board, but if it doesn't, the 360 is completely done worldwide. After all, the US is it's only great lead right now. The PS3 will continue to sell well through the holidays as people buy it for blu ray and for games, and many stores still encourage one to get it first and foremost. You can disagree all you want, but at least I'm not being biased in my prediction. Facts are facts, hate 'em or love 'em.

Immaculate3746d ago

Owning both consoles isn't a proof of no bias. You clearly state in your bio that you are a ps3 fanboy. Which is very odd to me, because every duel console owner that I know personally prefers the 360 by a landslide.

And no, it was when the ps2 got between $150-$199 that it sold it's most consoles. And are you saying that the $400 ps3 is a good value for someone without an hdtv or broadband? I think Sony should release a $100 ps3 sku for these people, don't you?

AAACE53746d ago

Ps3 fans come to 360 post because there aren't enough Ps3 post for them to comment on, and there aren't alot of 360 fans in their post bad mouthing the Ps3 so they come to 360 post to irritate 360 fans to get them to post on Ps3 post!

Basically they are crying out..."WILL SOMEBODY TALK TO MEEEEEEEEEE!"

RoidRage3746d ago

No kidding. The same group of Sony fanboys that claim the ps3 is the best thing that has ever happened to them, stay on this site 24/7. I don't think any of them really like their ps3's, because they can't be playing them very much. They need to get a 360, and put a stop to their lonely madness.

+ Show (15) more repliesLast reply 3746d ago
slugg3746d ago

Is talking only about sales at their stores, which being the #1 games-only retailer in the world, will carry some weight. Reason they are so confident is that their profit model is based on used product, and right now, the 360 has the most quality used games available. So since Wii's are still impossible to find, Gamestop employees will point out the great deal a new $199.00 360 + used games is, sell them a subscription card, and call it good. I know- I work for Gamestop, and since the price drop we have been pushing the 360 like crazy to drive reservations and subscriptions (to our discount card). When you point out that for the price of just a PS3 system you can get a 360, a discount card, a years subscription to Game Informer, and 3 to 4 used games (minimum, depending on price) the deal is pretty much done. Sony needs to drop the PS3's price soon, or the Wii and 360 will hammer them this holiday.

OGharryjoysticks3746d ago

This makes sense because it seems 80% of Gamestop's in-store customers are for the 360. Amazon.com is where the PS3 shoppers go it looks like, and the Wii people shop at Toys-R-Us.

beoulve3746d ago

I agree, XBOX 360 in amazon sales went back to flat like it used to.
Even the Elite has $60 gift card on purchase. It still 30ish in overall rank.

The gaming GOD3746d ago (Edited 3746d ago )

So people go to Amazon mostly for ps3

People go to gamestop for the 360

and people go to Toy's R Us for the Wii???

I'm not trying to flame or anything. But are those facts that you have actual evidence for. Or is this just personal assumption?

thebudgetgamer3746d ago

300$ for a 360 i a good deal
too bad im broke

cherrypie3746d ago

Thanks go-to PUMPKINPUNKER:

"right now there are 4 popular SKUs for the 360 on Amazon: the elite, the 20 gb, the new 60 gb, and the arcade model. therefore the sales are spread out more for the 4 different units compared to the 80 GB PS3 which is the only PS3 that Amazon sells."

Youre "ps3 owners goto amazon, Xbox 360 to gamestop" line is just DUMB.

If you were mildly more informed, you might stop wasting our time.

ReBurn3745d ago

lol @ people using Amazon.com as an overall sales benchmark. The only thing that Amazon.com rank represents is rank on Amazon.com. If it actually meant anything it would say that the 360 and PS3 are being outsold on a regular basis by a plastic steering wheel.

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jerethdagryphon3746d ago

it will boost sales short term but i dont think it will be a 2x-4x boost maybe 1.9x at most

jerkstore3746d ago (Edited 3746d ago )

Is that GiantAIDSInfestedCrab will be stroking himself to this news.

Have you people seen anyone more pathetic than that little pencil necked geek? I'm surprised no one has put him out of his misery. Maybe he'll get herpes from his grandma and finally leave this site.

On topic, I heard now that there is an official price cut, GiantEnemaCrab will be giving a price cut on his BJ's to all Microsoft employees, male or female (he prefers male though).

The worst part is that he doesn't even have a GAMERTAG! What a peanut brittle piece of sh1t.

DERRRRRRRRRRRRRRRRRRRRR!

By the way, you can contact GiantEnemaCrab at :

[email protected]

And here's his blog:

http://wordpress.com/tag/in...

Dyingduck3746d ago

Xbox360 died a year ago after Gaylo3 was released

This is a flop console at its most desperate days

Sir_Ken_Kutaragi3746d ago (Edited 3746d ago )

Is it -

Put a Game into the xBox 360 then the GameStop!!! ;-D

'GameStop Mamma!!!' 'Oh Not again!!!' ;-D

dukadork3746d ago

who ever goes to gamestop?
i buy all my games on amazon and i don't have to deal with a bunch of stinky giantenemycrabs trying to sell me used games as new.

cut off the middleman, these dudes are dinos on the verge of extinction.

GiantEnemyCrab3746d ago

Are you some kind of [email protected] man? Don't pull me into your little [email protected] circle you have going here with your fellow fishheads.

Who the f*ck is that wchaderton fatty? Is that the age group you are in jerkstore? If so, it's just like I thought a 15 yo little punk nerd b!tch.

I have a gamertag and I will give it to anyone who PM's me about it. Why don't you PM me your PSN ID or your gamertag. I bet you won't because you know you sound like a 13yo girl online.

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