How much will system prices drop in 2005?
- Thread starter Hollywood
- Start date
I wouldn't be surprised if MS started producing less and less xbox's sometime in 2005.
From comments that J. Allard has made in the past,
I doubt they're going to go the "budget system" route.
Maybe they'll start bleeding their supply dry like Sony was doing with the old PS2?
My feeling is that they want to move to a new system which is sold at break even or profitable levels.
From comments that J. Allard has made in the past,
I doubt they're going to go the "budget system" route.
Maybe they'll start bleeding their supply dry like Sony was doing with the old PS2?
My feeling is that they want to move to a new system which is sold at break even or profitable levels.
johnjohnson
Member
CVXFREAK said:
yeah, with a bundled game.
I agree. Microsoft is probably all-too-eager to put the Xbox debacle (financially speaking) to rest as soon as possible.Deku Tree said:
However, I must disagree, Jarrod: I see the PSTwo at $100 at the end of 2005. That price could enable competition with the Xenon as well as one last good sales spike before the PS3.
As for GC: $50 is probably too low, CVX -- that's much of a loss of perceived value, IMO. I don't see it going lower than $80 before Revolution (although that doesn't mean there can't be all kinds of bundles in the meantime, including a GC/GBA bundle that would probably do pretty well).
jarrod said:
If so, then they are a brave company. I don't know any other manufacturer willing to drop a cheap unit in favour of an expensive one. Don't forget that the mainstream won't buy an Xbox 2 for a year or two at least, so if MS drop Xbox 1, then Sony will happily hoover up the consumers come Christmas 05. And when *those* people come to trade up in 3 years or so, they might be more inclined to go Sony to play their PS2 games.
Baron Aloha
A Shining Example
I think Nintendo should drop the price of the GC to $79 in January right after RE4 hits and then drop it to $59 when Zelda hits (probably during the fall).
The PS2 will likely drop to $129 at E3 and if that happens MS will follow suit.
NDS should have launched at $99 IMO. Hopefully the price will drop.
GBASP might drop to $49 next christmas.
The PS2 will likely drop to $129 at E3 and if that happens MS will follow suit.
NDS should have launched at $99 IMO. Hopefully the price will drop.
GBASP might drop to $49 next christmas.
Gahiggidy
My aunt & uncle run a Mom & Pop store, "The Gamecube Hut", and sold 80k WiiU within minutes of opening.
I support this decision.jarrod said:
Should've made that decision year's ago. Better late than never, though... and this proves that Microsoft is a company that learns from its mitakes. Kudos to Microsoft.
Kobun Heat
Member
If the next Xbox hardware does indeed hit a year from now, Sony may very well drop to $99 just to take some wind out of MS' sails.
Mr_Furious
Member
MS was stupid with how they handled the Xbox launch and they'll be just as stupid with how they handle its successor's launch. Cutting the life of the Xbox short is definitely NOT a good start. This year saw the largest momentum sales-wise for the Xbox and within the next few months, MS is going to fuck all those people over that bought their system only 3 years in to it's soon-to-be shortened life cycle. Nice one, MS!
edit: oh and to keep this on-topic:
Xbox: 99
PS2: 99
GC: 79
GBA-SP: 59
PSP: 199
DS: 149
Xbox2: 299
these are all predictions for end of 2005.
edit: oh and to keep this on-topic:
Xbox: 99
PS2: 99
GC: 79
GBA-SP: 59
PSP: 199
DS: 149
Xbox2: 299
these are all predictions for end of 2005.
Mr_Furious
Member
when the average lifespan for any other machine has been over 5 years, MS is definitely cutting the lifespan of the Xbox by at least 1 year. I don't find that funny and neither will the hundreds of thousands of consumers that just purchased the Xbox this Xmas.f_elz said:
JoshuaJSlone
Member
After dragging out drops of $0, $100, $20, and $30 over a four year period, a $50 drop for the PS2 does seem like a pretty big step. But the release of the Xbox 2 definitely shuffles things up, so it's possible. As for GCN, I'm still surprised it didn't drop to $79 this year, after $50 and $50 drops the previous years. Sure there's the inclusion of Metroid Prime/Mario Kart DD, but as far as the consumer is concerned I don't think that seems like a much better deal than the 4 emulated Zeldas of last year.
Mr_Furious
Member
I bought mine when the price dropped to 199 just six months after it launched. I'm thinking about the others. It shouldn't be perceived as bad to purchase a console when it's only been out for 3 years but MS is going to make many feel like that next year. If consumers have been conditioned to a minimum of a 5-year life expentancy by the industry and MS ignores that to "fix" their mistake which was the Xbox then it's not "Buyer beware", it's "MS beware". And if the Xbox2 doesn't go as planned will MS cut it's life short too? Things to think about. Sony and Nintendo are doing the right thing by not rushing to the market with a new home console.Hollywood said:
Late Stage Marxist
Member
I'll be a little annoyed if Xbox 2 comes out this Spring and all the games dry up on Xbox, but at the same time I don't remember ever buying a system at launch so it's somewhat of a non-issue for me. I just hope Xbox software development doesn't completely cease in 2005.Mr_Furious said:
Mr_Furious
Member
Expect it. MS needs to have it's new hardware accompanied by impressive software on hand for a good show at E3 2k5 to build momentum for it's launch less than 6 months later. That means that majority of MS's development has most likely already shifted to next-gen with just a few stragglers left to wrap things up on existing projects (that haven't already shifted to Xbox2).trippingmartian said:
Kobun Heat
Member
I'm still very curious to see what happens to Xbox supplies once the next piece of hardware is out. I'm not sure why Microsoft would continue to produce and sell them for any longer than they absolutely had to.
EDIT: And yeah, Xbox first party development (and, one must assume, most of the rest of it) will be over in a year's time if the next system is out by then. I imagine there will still be some third-party releases, but those will be mostly PS2 ports (as PS2 software development will still be lucrative for a while).
EDIT: And yeah, Xbox first party development (and, one must assume, most of the rest of it) will be over in a year's time if the next system is out by then. I imagine there will still be some third-party releases, but those will be mostly PS2 ports (as PS2 software development will still be lucrative for a while).
Mr_Furious
Member
MS's Xbox starting line up for 2k5 is thin to say the least:
MechAssault 2 - 12/28/04
Forza - 2/1/05
Conker - 3/15/05
Jade Empire - 3/29/05
uhm... and that's it. Kameo has already been mysteriously delayed indefinitely (probably to make the jump to Xbox2) and there's no real reason why MS would make any new announcements for their soon to be aborted console, what with Xbox2 on the horizon. The Xbox will need the support of 3rd parties almost exclusively to carry out a full 2005. That's sad.
MechAssault 2 - 12/28/04
Forza - 2/1/05
Conker - 3/15/05
Jade Empire - 3/29/05
uhm... and that's it. Kameo has already been mysteriously delayed indefinitely (probably to make the jump to Xbox2) and there's no real reason why MS would make any new announcements for their soon to be aborted console, what with Xbox2 on the horizon. The Xbox will need the support of 3rd parties almost exclusively to carry out a full 2005. That's sad.
Late Stage Marxist
Member
It seems like they're trying to kill whatever momentum they had with Xbox.
Mr_Furious
Member
Yup. Instead of redesigning the Xbox to be profitable, they're pushing the abort button. Like I said, "stupid". :-\
SatelliteOfLove
Member
Mr_Furious said:
I wouldn't doubt it. Although this means that MGS's Box2 line-up should be mighty tasty, or at least well-funded.
Cue Metallica, cuz this is Sad But True. (And it would still make money.)
captmcblack
Member
SatelliteOfLove said:
Hehe, I don't think even Nintendo can make money on hardware that's essentially given away like that. :lol
Mr_Furious said:
3rd party games is what had sustained the system through the less than stellar 1st 2 years of the system 1st party speaking, so I see no problem in using 3rd party to sustain it in it's final year. I don;t think 3rd party publishers are crying about the lack of competition from MS. Xenon needs to have games and they need be quality. What would you have them do, allocate 1/2 of their 1st party resources to the Xbox is it's last year?
Mr_Furious
Member
I'd much rather MS allow their Xbox have a full life cycle so your question wouldn't even be an issue. Unfortunately, that's not going to happen but I guess I'm in the minority with my train of thought here on GAF. Oh well.Sysgen said:
MS could've easily redesigned the Xbox to a profitable model which is the real issue people don't want to acknowledge. Not only are they so quick to ditch the Xbox as it is for their new profitable Xbox2 but their making the mistake of thinking that being the 1st to the market equals guaranteed success in the battle for next-gen supremacy. MS has already made 2 HUGE mistakes (possibly 3 if there's no bc), imo, but I guess we'll see how Xbox2 is perceived by the casuals at large.
SatelliteOfLove
Member
captmcblack said:
It's paid for itself Lord knows how long ago, and if done next September/October after the new Zelda's been out a while, (moving systems), this would get rid of excess inventory next Xmas in preparation for the Revolution. When have I been wrong about video game finance before? (Don't answer that. :lol )_
Mr_Furious said:
Who at MS thinks 1st to market equals " guaranteed success "?
How can you expect them to launch after SONY after what happened this gen?
I'm curious how you know it's so easy to redesign the Xbox to be profitable?
b/c is an issue but you are aware of the issues at hand? Lets say you are part of the Xenon team, so to speak, do you just stay with Intel and nvidia so you can have backwards compatibility at the cost of your entire next gen business model?
Mr_Furious
Member
I read at least one interview where someone at MS mentioned one of the reasons why Sony had so much of an advantage was because they were first to the market and replied "we're not going to make the same mistake we did with Xbox" or something similar. MS wants to be 1st out the door because they believe this'll give them a real advantage over the competition when there's no real evidence that proves this. They must truly believe they'll win the next-gen war if they're willing to short live their 1st effort to the console market, risking pissing off many consumers. Sega continually pissed off consumers and now look where they are.Sysgen said:
Who ever said after? I'd be happy with a simultaneous launch similar to how Nintendo's handling it. Hell, I'd be happy if it was within a few months even.
Because I happen to know how much certain components cost to manufacture. MS would save $50 ALONE, if they'd switch to a fliptop drive unit as opposed to the front loader. Couple that with streamlined innards to minimize parts (ala PStwo) and MS would certainly be able to sell the machine at at least cost, if not gaining a small profit. If need be, they could even lessen the storage capacity of the HD because, honestly, who would really complain other than the pirates. I know ton of people that have an Xbox with tons of music, DL content and save files stored and they got a ton of room left. Personally, I don't know a single person that has capped out their 10g HD.
I'm well aware but that's poor planning on behalf of MS for not thinking about it's future console businesses. There's always the possibility of an add-on if the market cries out for it but it may be too little too late for MS if they've turned off a large chunk of the marketplace to their Xbox2.
Mr_Furious said:
Point 1 - You didn't answer the question. You said they expect guarenteed success. No one expects guarenteed success and no one said it. They said they have a good chance if I remember correctly.
Point 2 - The best strat is to launch early and you and everyone else knows it. To say otherwise is either ignorance or people just like to hear themselves talk. The way it works out anyway is perhaps is that they launch a few months earlier than SONY / NIN.
Point 3 - I think you hit this one right before. They do not want to extend the life of the console and therefore since it has no future it doesn't get redesigned.
Point 4 - A poor planning argument is ludicrous since the original Xbox was put together to get something out to market as quickly as possible. If anything the planning for Xenon will be well thought out (in comparison to Xbox), so to criticize them for issues with b/c is worthless. I'm not saying that they shouldnlt have it but only that your critcisms of poor planning are irrelevant given how the two consoles were conceived.
So your score 1 out of 4. :/
I think you can do better if you were more objective. Peace .
Mr_Furious
Member
Sysgen said:
Point 1 reply - I'll admit that I used a poor choice of words initially by using "guaranteed" but there's no doubting that MS strongly believes this'll give them a large advantage in their war for console dominance next gen.
Point 2 reply - I do not believe that rushing to the market first by prematurely aborting the Xbox is a good strategy. MS has had their most successful year yet for the Xbox and within the next 3 months they're going to simply drop it like a bad habit in favor of a new lesser featured yet more powerful successor. Yeah, makes good business sense to me. The crazy thing is there's no real threat by either Sony or Nintendo looming on the horizon so why should MS react so desperately? The PS3 probably won't come out until 2k6 in Japan at the earliest with an even later U.S. launch date so MS had plenty of time to rework the Xbox to be a profitable business, had they decided this a year ago.
Point 3 reply - The problem is this is purely MS's choice. MS decided a long time ago that the Xbox was going to have a short life cycle so the thought of redesigning the machine was probably squashed around that time as well. MS's initial poor choice of not redesigning the Xbox early on doesn't necessary mean it's an acceptable solution for them to release their next-gen console prematurely (at least imo).
Point 4 reply - Me calling MS on their poor planning of the Xbox (that you even agree with) is ludicrous/worthless/irrelavent with regards to how they've approached it's successor? I don't understand your rationale. The Xbox was slapped together with no real thought on future iterations and its features? Uh, wait....what?
I didn't know we're keeping score but from where I sit, I'm 4 for 4 so scores are pretty much useless. Oh and I think I'm being very objective here. I'm neither an MS zealot nor a hater. I'm just speaking my mind about what I perceive as potential mistakes. Just because my opinions aren't in line with yours doesn't mean I'm not being objective.