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Submitted by OgTheClever 1871d ago | article

High cost of consoles a "strategic error" for manufacturers

Hardware manufacturers have kept the price of home consoles too high for too long, contributing to a slowdown in game sales this year.

That's according to analyst Michael Pachter, who said that a fourth consecutive month of declining sales in the in the US is in-part due to consumer fatigue at the current price points. (Industry, PS3, Wii, Xbox 360)

SuperStrokey1123  +   1871d ago
I only kind of agree with this.

First of all consoles are expensive, i wont debate that but given what you get out of them now days the VALUE of the them seems to be rather high.

Also i think many people are using the current economic "crisis" as a tool to vent and blame this on a systems failures or prehaps their lack of success might be the better term to use.

I think the error in pricing isnt in using expensive tech but rather that they use expensive tech that doesnt drop in price fast enough or regularly(the cell for example), or tech that isnt reliable enough (rrod) and because of these two issues the systems stay more expensive than they "need" to be in the publics eyes.

I know that pachter says that the markets are becoming saturated at these current prices and that this may be their issue but im wondering if its more of a perception thing than an actual one.
#1 (Edited 1871d ago ) | Agree(0) | Disagree(0) | Report | Reply
Rainstorm81  +   1871d ago
God help us all.
Xbox360 is at best 200
PS3 IS 400
Wii is 250

If anybody needs to drop the price its the wii/gamecube yet no one complains about it.

The PS2 is 100, How low should current gen consoles go???

We all know Pacther is really referring to the PS3 he made a joke on bonus round about how it will be 350 in fall 2010.
EvilTwin  +   1871d ago
Raiin -- As long as Wii is selling at a brisk enough pace, there really isn't any incentive for Nintendo to drop its price.

Sony is in the toughest spot. They have the priciest console, and despite some drops, it's still too expensive. If you can live without Blu-ray, you can buy a 360 (with comparable, but not better, graphics) for half the price, and play the big guns like GTAIV, Modern Warfare and Halo 3.
#1.2 (Edited 1871d ago ) | Agree(1) | Disagree(0) | Report | Reply
monkey nuts  +   1871d ago
Economics of scale.
Basicly if I remember correctly: the more hardware units sony/ms/ninty produce and sell the lower the costs become for producing them, due to the economics of scale. Whether they decide to pass the reduced costs on to the consumer is another matter, its all about profits vs demand if they are in that position. If there is a healthy demand then they can sit and count profits all day, if not theres nothing like a price reduction to stimulate sales. I may be wrong but I'm sure it won't be long before someone corrects/mocks me. :P
EvilTwin  +   1871d ago
Gee, consoles that have been out a few years, cost a few hundred dollars, are in a AAA-game summer dry spell (lets hear it for...Call of Jaurez and inFAMOUS?), and are competing in the middle of a recession have their sales slowing down?

Imagine that.
#3 (Edited 1871d ago ) | Agree(0) | Disagree(0) | Report | Reply
ian72  +   1871d ago
IMO all consoles are priced well really. For what you get they are a decent price. I have a PS3 and the things it can do is amazing. Had it over 2 years now and it cost £425. Now you can get one for less than £300 which I think is a great deal. They cost a lot to make and Sony, Microsoft and Nintendo have to make a profit.
Gamer_Politics  +   1871d ago
we all know what console and handheld need a price cut
Xi  +   1871d ago
I think patcher is an idiot.
1. There's been a shift to the way console manufactures plan to operate the consoles. It's not the same 4-5 year life, expect things into the 6-8 year range. This means pricing strategies will shift to accommodate it.

2. there's still a recession going on, no matter what the prices on the console, consumer goods will always take a drop in sales.

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