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Xbox Series X and Xbox Series S price increased announced for Japan

Kilau

Kilau

Member
www.gematsu.com

Xbox Series X and Xbox Series S price increase announced for Japan

Microsoft has announced a 5,000 yen price increase for the manufacturer suggested retail price of Xbox Series X and Xbox Series S consoles in Japan, which will go into effect beginning February 17.
www.gematsu.com www.gematsu.com

In a statement, Microsoft Japan said, “After carefully evaluating the market condition in Japan, we have decided to change the suggested retail price of Xbox consoles in the country. We regularly evaluate the impact of local pricing to maintain reasonable consistency across regions. This price revision affects our customers and was a difficult decision to make, but going forward we will continue to provide the ultimate Xbox experience that our customers expect.”
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23a2fe8541338b21873b2c2054d02af43e3627e4.gif
 
Abriael_GN

Abriael_GN

RSI Employee of the Year
Before someone panics due to a poorly detailed article, the new price translates into $461 and $291, which is still cheaper than in the west, so yeah, they're simply adapting to the super-weak yen, as many other companies have done.

Before this, you could grab a series X in Japan for the equivalent of $422 and an S for $248.

Basically, everything has been 30% off in Japan for a while (more recently like 25%) for anyone who was paid in Dollars haha. Last time I went in September/October, I had some fun shopping 😂
 
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thicc_girls_are_teh_best

thicc_girls_are_teh_best

Member
gokurho said:
This is good decision.
More Japanese will buy xbox until price increase.
Click to expand...

I strongly doubt that; sales have been trending downward for it in Japan for months now. Cheaper price before MSRP increase won't do anything for lacking demand.

Expecting MS to do this for Xbox in several ROTW markets in order to avoid doing a hard price increase in US & UK. And any increases in those two markets will be masked with bundles like the Series X FH5 bundle already available.
 
T

Three

Member
Abriael_GN said:
Before someone panics due to a poorly detailed article, the new price translates into $461 and $291, which is still cheaper than in the west, so yeah, they're simply adapting to the super-weak yen, as many other companies have done.

Before this, you could grab a series X in Japan for the equivalent of $422 and an S for $248.

Basically, everything has been 30% off in Japan for a while (more recently like 25%) for anyone who was paid in Dollars haha. Last time I went in September/October, I had some fun shopping 😂
Click to expand...
but it's $39 more expensive! The arrogance, the outrage!

On a serious note. I feel more for those in India who recently got their second price increase on the xbox series. They apparently pay $485 for a Series S now.
 
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T

Three

Member
Abriael_GN said:
I wouldn't call it misleading, just poorly detailed. If one wants to properly inform, they'd offer at least converted prices and a brief explanation of the market situation. Otherwise, people may think Microsoft could announce hikes across regions as tomorrow rolls in.
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True, unfortunately some people tend to ignore the exchange rates and the strengthening dollar so it wouldn't be the first time.
 
Kilau

Kilau

Member
Abriael_GN said:
I wouldn't call it misleading, just poorly detailed. If one wants to properly inform, they'd offer at least converted prices and a brief explanation of the market situation. Otherwise, people may think Microsoft could announce hikes across regions as tomorrow rolls in.
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Thank you for providing the currency conversion context, it’s appreciated.
 
thicc_girls_are_teh_best

thicc_girls_are_teh_best

Member
Abriael_GN said:
I wouldn't call it misleading, just poorly detailed. If one wants to properly inform, they'd offer at least converted prices and a brief explanation of the market situation. Otherwise, people may think Microsoft could announce hikes across regions as tomorrow rolls in.
Click to expand...

I'd just like the same leniency and consideration to be equally applied to Sony for a change by certain people in the industry and online. The issue with currency fluctuations and weakening markets was very much the reason Sony raised PS5 prices in several territories.

But how did many people choose to portray that? "Sony is greedy", "Sony is anti-consumer", "Fire Jim Ryan" and all the usual crap. But when Microsoft ends up doing the same thing, every logical reason is conveniently provided to rationalize as to the reason why. And this happens regularly whenever Sony is first in doing something that might seem potentially annoying like a price increase.

Just have gotten beyond tired of the double standards, that's all.
 
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T

Three

Member
feynoob said:
A lot of countries are going to get fucked, as their currencies starts to get weaker.
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MS decided to raise prices now when the yen has actually begun recovering. Its been recovering since October.

Sony raised their price in September when it was getting weaker and weaker. I guess MS used that to PR the shit out of the bad news on Sqwauk Asia saying he has no plans to raise prices but is now increasing them when the yen is recovering.
 
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thicc_girls_are_teh_best

thicc_girls_are_teh_best

Member
Three said:
MS decided to raise prices now when the yen has actually begun recovering. Its been recovering since October.

Sony raised their price in September when it was getting weaker and weaker. I guess MS used that to PR the shit out of the bad news on Sqwauk Asia saying he has no plans to raise prices but is now increasing them when the yen is recovering.
Click to expand...

Sounds like this might indicate them trying to squeeze out more in hardware revenue from markets they aren't expecting sales to grow that much, particularly if they want to stay competitive in US & UK by keeping those prices the same or only do soft MSRP increases via bundles.

At least that's how I'm reading it. Basically they're sacrificing markets like Japan for US & UK and passing off the costs to slowing ROTW territories. Curious to see what other locations they might increase prices (and where the currency value is recovering).
 
demigod

demigod

Member
Jim Ryan’s fault right guys?

Abriael_GN said:
Before someone panics due to a poorly detailed article, the new price translates into $461 and $291, which is still cheaper than in the west, so yeah, they're simply adapting to the super-weak yen, as many other companies have done.

Before this, you could grab a series X in Japan for the equivalent of $422 and an S for $248.

Basically, everything has been 30% off in Japan for a while (more recently like 25%) for anyone who was paid in Dollars haha. Last time I went in September/October, I had some fun shopping 😂
Click to expand...
How much are happy endings over there and did it get a 30% off?
 
Rac3r

Rac3r

Member
T

Three

Member
thicc_girls_are_teh_best said:
Sounds like this might indicate them trying to squeeze out more in hardware revenue from markets they aren't expecting sales to grow that much, particularly if they want to stay competitive in US & UK by keeping those prices the same or only do soft MSRP increases via bundles.

At least that's how I'm reading it. Basically they're sacrificing markets like Japan for US & UK and passing off the costs to slowing ROTW territories. Curious to see what other locations they might increase prices (and where the currency value is recovering).
Click to expand...

Pretty much, I think they've just accepted that the loss they are making in that region isn't helping them compete any better so they may aswell reduce that loss and possibly make some profit as the currency slowly recovers.

They should have increased it in September really when it hit rock bottom but they wanted to compete better and use their competitors hike against them
Visualizing-Currencies-Devaluation-Against-the-U.S.-Dollar_main_Dec-14.jpg
 
Robb

Robb

Gold Member
I guess that’s the one market where they can do it without consequences, sales can’t possibly get any lower.
 
reinking

reinking

Gold Member
Three said:
MS decided to raise prices now when the yen has actually begun recovering. Its been recovering since October.

Sony raised their price in September when it was getting weaker and weaker. I guess MS used that to PR the shit out of the bad news on Sqwauk Asia saying he has no plans to raise prices but is now increasing them when the yen is recovering.
Click to expand...

This is the Phil we know and love....
Speaking to CNBC's Squawk Asia (below), the Xbox boss made clear that the Xbox Series X and S will remain at $499 and $299 respectively.

"We're always evaluating our business going forward so I don't think we can ever say on anything that we'll never do something," Spencer said. "But when we look at our consoles today, we think value's incredibly important.
Click to expand...
 
thicc_girls_are_teh_best

thicc_girls_are_teh_best

Member
Abriael_GN said:
I mean, they sold 500,000 units. It's not PlayStation or Nintendo levels for sure, but for Xbox, they actually have been selling pretty decently.
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Their sales in Japan have dropped significantly in the past 2-3 months. It's like they're two whole different consoles, that's how bad the drop has been. And it's not solely due to supply because at any point during that 2-3 month period, Microsoft could have increased supply for Japan if the demand warranted it.

Instead comes a price hike. And I get the economics of it but, the sales have tapered off significantly in Japan months ago. At the new average they've been getting, they'll barely get > 200K sales in the next five years. Or to put it another way, ~1 million behind 360 in the territory. Or if you want to be an optimist, 6x XBO Japan LTD but, that isn't saying very much at all.

Three said:
Pretty much, I think they've just accepted that the loss they are making in that region isn't helping them compete any better so they may aswell reduce that loss and possibly make some profit as the currency slowly recovers.

They should have increased it in September really when it hit rock bottom but they wanted to compete better and use their competitors hike against them
Visualizing-Currencies-Devaluation-Against-the-U.S.-Dollar_main_Dec-14.jpg
Click to expand...

MS will do everything to avoid a hard price hike in the US & UK; considering they did not do very well over the holidays in US particularly even with aggressive bundles and pricing discounts for Series S, they don't want to risk losing ground if they don't have to.

So the economics of increasing the price in markets where the sales potential is saturated and don't account for much on their own for the brand makes sense. Squeeze those markets as much as you can to help mitigate hardware revenue losses, and hope you don't lose too many more sales in those same markets with the increase. I guess if they only see a 10% drop in total units sold, they'll consider it a success and have that offset by the increased revenue per unit still ending up sold.

Though with Microsoft it's a bit cheekier than that because IIRC they take the money upfront from retailers when they buy the units, so that merchandise becomes the retailer's problem whether it sells or not. So sold-through numbers could drop in these locations but MS isn't going to see the impact of that on their revenue because at least for a while retailers will keep ordering the same amounts they did in the past (I suppose).
 
tusharngf

tusharngf

Member
they have increased price in india before. I think they are going to increase prices in all those countries who are weak against dollar.
 
//DEVIL//

//DEVIL//

Member
Abriael_GN said:
Before someone panics due to a poorly detailed article, the new price translates into $461 and $291, which is still cheaper than in the west, so yeah, they're simply adapting to the super-weak yen, as many other companies have done.

Before this, you could grab a series X in Japan for the equivalent of $422 and an S for $248.

Basically, everything has been 30% off in Japan for a while (more recently like 25%) for anyone who was paid in Dollars haha. Last time I went in September/October, I had some fun shopping 😂
Click to expand...
It didn't sell at 420$, it will sell for 470?

I don't think MS was affected by the weak yen because they didn't sell shit in the first place .

What a weird thing to do for a company as rich as MS.

Not being a troll or anything I love the Xbox and I get it and why it's done but damn lol 😂

I guess they have to anyway otherwise Xbox will be sold in Japan will be imported to Australia or other close by countries for much cheaper than getting them directly from official channels in that said country
 
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DenchDeckard

DenchDeckard

Moderated wildly
Expected with the weak yen, this is not what everyone is trying to paint it out as.

Worldwide price increase in every part of the world apart from the country you are scared to lose ground in...with a strong dollar.

Vs...one price increase in the country with a weak Yen and you haven't made a dent in, in 3 generations.

Go at it though Sony gaf, have fun lol.
 
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