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EEDAR on NPD: 360/PS3 Price Cuts In Sight, Industry Remains Robust

Consumers might be seeing price cuts for Xbox 360 or PlayStation 3 in the coming months, claimed analyst Jesse Divnich of research firm EEDAR in a report sent to Gamasutra following today's NPD sales figures for March.

Divnich pointed to the lower-than-expected sales of Xbox 360 and PS3 as evidence that the systems might be plateauing. "These hardware results would indicate that both systems have likely saturated their potential market at their current price points," he wrote. "If we do not see any price cuts in the coming weeks, we can likely expect some hardware cuts once GTA IV loses some steam (before July) or if the GTA IV release significantly drives hardware sales for one console over the other."
TnS - supercontributor
Published: 622 days 22 hours ago | News | PlayStation 3 | Xbox 360 | Wii | Nintendo DS | Industry News
 
 

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jwatt - 622 days 23 hours ago
1 -
I think M$ will do it before Sony.
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pwnsause - 622 days 23 hours ago
1.1 -
question is by how much? you got to put into RROD costs they put into last year which was about $2 billion, i say $50 off on the 360, and $100 off on the PS3 by E3
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sonarus - 622 days 23 hours ago
1.2 -
Both companies are in this to make money and they will cut the price the minimal amount they feel will yield the greatest return. PS3 is perfectly capable of reaching 300 by E3 and 360 is capable of reaching 250 by E3(premium) however both sony and msoft have lost a lot of money they would like to regain so price cuts really aren't that simple. If ps3 does cut price pre MGS4 consider it not only huge but humongous
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thewhoopimen - 622 days 20 hours ago
1.3 - @Sonarus
Actually according to Sony they churned out 552million dollars in earnings this month. They can afford the price cut.
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solar - 622 days 23 hours ago
2 -
we need analysts to analyize the analysts.
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Raider2000 - 622 days 20 hours ago
2.1 -
They did do that once. Pretty typical, Analysts pretty much coming in at 50% accuracy (including myself).

BTW, this is Jesse from EEDAR.
3 Bladestar | 622 days 23 hours ago - User only got 1 bubble - Show
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Breakfast - 622 days 23 hours ago
3.1 -
smart, smart, smart.
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sonarus - 622 days 22 hours ago
3.2 -
No denying Msoft needs to drop price but we can't rule out a ps3 price drop. Sony's strategy has always been to keep the ps3 cheaper than the stand alones. The cost of a blu ray drive is now est at 100 bucks from 200 (don't ask for a source but i read it in some story on n4g lol) last yr so i am sure they could slash the price if they really need to. Sony already said they expect to cut the price of blu ray players by at least 100 dollars this yr so assuming they keep the same strategy of ps3 maintaining equal price point with stand alones, then i expect a ps3 price drop as well. Sony owns the largest market share for stand alone blu ray sales so they aren't too worried about competitive pricing.
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hotshot127 - 622 days 20 hours ago
3.3 - agreed to some extent
this is the bladestar that i like. weather i agree or not, at least when you have a logical argument. while i do think microsoft needs a price cut more then sony, at the same time i dont. of course if sony wasnt 6million+ behind, i would say sony can keep the price the same and not worry about a thing. but sony needs to get as agressive as possible. i know sony has some big hitters coming or already out(gtpro.) and mgs4 after gta(haze will suck, so im not including it, and it wouldnt sell systems regardless) but i think if sony were to cut the price of the ps3 by at least 50 around the end of may to keep the momemtum going in full force with mgs4 coming budled and the 80 gig(which is in high demand) coming back, sony can have this year in the bag. at the same time, i know companys are in it to make money and as you talked about the stand alone bluray drives, i agree on that. i KNOW sony will get a 299.99 ps3 this year, im just not sure when.

maybe thier planning on cutting it when home and littlebigplanet arrives to try and attract the more-so casual crowd. we will see though.

now call me a fanboy or whatever but i just dont think gears 2 will sell systems the way people think because the first iteration was the system seller, the second one will be brought by the same people who brought the system for the first.

i also think since microsoft is in the lead right now, the best move they could make would be to HOLD OFF on dropping the price on gta and drop the price around june 12th to try and hinder some ps3 sales for the month(they are direct competitors) but thats just me. some people could easily argue this point and say people will buy mgs4 and a ps3 no matter if microsoft cuts the price or not but like i said......we will see
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FreedomReign - 622 days 20 hours ago
4 - Analysists can't use Google I guess
2008/2007

Nintendo Wii 721K +178%
Sony PlayStation 3 257K +98%
Sony PlayStation Portable 297K +65%
Nintendo DS 698K +37%
Microsoft Xbox 360 262K +32%
Sony PlayStation 2 216K -23%

If that's a Plateau what does a peak look like?
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Raider2000 - 622 days 19 hours ago
4.1 -
Analysts can use google.

The console war is not so much a battle of who can sell the most consoles, but a battle of not being last. The gaming industry growth is crazy and home consoles will be the gateway to mass digital disribution through the television. With stakes that high, coming in last is costly (so is a tie!).
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FreedomReign - 622 days 19 hours ago
4.2 - @Raider Agreed
However to say that sales for both HD platforms have flattened is a stretch.

We can all see that PS3 sales are trending up by an average of more than 100% since the 40GB sku, no reason for a price drop.

MS is due for a price drop, we all know that, but they can still afford to hold off until PS3 sales begin to consistently surpass the 360 like they have in the UK.

For Microsoft #1 is to turn a profit, #2 is to gain market share. Winning is a pipe dream, and I would hope their shareholders know that any $$ above that red line is still a win.
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Robearboy - 622 days 16 hours ago
5 - I really dont see how Sony
Can afford a price drop, do we know for 100 percent sure they are making money on consoles sold (they were selling at a loss when the console first came out, although they have made the cost of manufacturing cheaper, they have also dropped the price since then so one would assume that this would conta each other out), and even if they are making abit of money on each console sold, they have to pay back the MASSIVE amounts of money they used to invest in blu ray, as for microsoft, we know for a fact they are now making money on consoles and to pay for the RROD, halo 3 has paid for that
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Tony Scarboni - 622 days 15 hours ago
6 - A price cut b4 late summer would be premature...
Halo 3 has paid for RROD!!!! M$ lost 2 billion so far on RROD! that's a pretty bold claim to say they have recuperated it all off Halo. M$ is now on their 3rd chipset, and while I'm sure this has curbed RROD significantly, those dev. costs alone must have been expensive not to mention RROD has not been remedied completely. XBOX360 still has a significantly higher failure rate than WII or PS3, and a majority of ppl own the defective consoles still. Failure is immenent for them.

Getting back to the topic at hand, we're aren't going to see a price drop until ppl spend their tax returns/stimulus checks. That is easy money that you know MS and Sony are looking to cash in on. They'd be foolish to cut the price b4 this occurs.

Hardware sales are going to be slow through the summer, either way the companies are going to take a loss on that end. They would be better off waiting til just b4 the holiday season, right when Hardware sales start to pick up again, b4 cutting the price.
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