MS Admits $199 Is Console 'Sweet Spot' >

	2007/06/08 16:01:46: Posted by DM
	MS recently revealed the intention to market their console to families more, and has now also admitted that a price of $199 is the sweet spot for this audience. Does this mean that the MS console will be undergoing a price reduction in the near future? Signs point to no. >Link
	Labeled With  xbox360 microsoft Comments [14]  | Rate this article: -- 1 2 3 4 5 6 7 8 9 10  | Avg. rating of 6.0

It's a good thing Microsoft is aware that virtually all consoles are sold at a price of $199 or lower. I agree with the people who say that the pricepoints of $199, $149, and $129 are the magic ones.

When it comes time for the pricedrop, the Core Xbox 360 system should be able to reach $199; that is the point in time when we will truly see the benefit of the Core system, particulary in parts of the world where Broadband Internet access is not available.

the first xbox was at a "sweet spot" and it still failed

Oh shit UPT vs UTP *Above*

Sky: Dude...

How did xbox 1 fail ? They were up against the most popular console of all time being the PS2. They made one hell of a name for themselves in a very short amount of time IMO. I don't care what anyone says Xbox 1 was allot better than PS2 just because of XBL alone IMO. I'm no fanboy and own all 3 of the new consoles but, it seems to me that M$ has Sony down and are repeatedly kicking them. Has Sony been defeated ? NO... Because PS3 is just getting started but, by the time they get some GOOD exclusive games out M$ will have to large of an install base IMO. Another thing that sucks for Sony is they still have to lower the price of the console if they want compete. When they do lower the price M$ is gonna lower theirs at the exact same time with no worries at all because their only a few months away from becoming profitable with the 360.

I love my PS3 but i can't play Motorstorm and Resistance forever. I understand the games will come but, will it be to late by then ? I really hope Sony has something up their sleeves because M$ is dominating right now and stealing exclusive title after exclusive title as time goes on. By the way Xbox 1 was NOT a failure... When your new to the market people don't know you or trust your name because we all know back in 2001 M$ was NOT know for making game consoles. It's only been 6 or 7 years since their introduction and they have arguably the best console. It seems M$ might have done the impossible in taking down the mighty Playstation brand with only 2 consoles.

what by the time exclusive titles, already no third party trust them.... so no they have to act liek nintendo back in nintendo 64 !

@NuttSack, No I meant UPT vs UTP because its the same sh!t just different sides of the fence.

if MS drops 50 on the Premacore console making $250 Sony is F*cked, if that happens the Accessories and attach rate will go up with the system. That means more Bling for the 360.

@B1ueBurneR.. I have a feeling M$ might hit Sony hard with a 75$/100$ price drop right away. IMO... If they lower the price it won't be the game/accessory attach rate that will help M$ right away, It will be the consoles install base. Obviously the overall game/accessory attach rate will increase over time with a price drop though. I think right now M$ is just concerned with getting as many consoles into homes as possible and then, later letting their software do the talking.



The 360 is in almost exactly the same situation as the PS2 was in years ago. They are on top because they have the best game selection. Lets face it... most people don't play games as much as me or probably most of the people on this site. Most people buy one console and make that decision based on game selection. Right now there is little reason to own a PS3 IMO, who wants to pay double for less games/worse online support/arguably worse graphics and controllers with no rumble ? Again i'm by no means a fanboy i'm just looking at the situation from a person wanting to purchase a new console. Sony does offer Bluray and free online right out of the box and that should be mentioned in Sony's defense. Honestly though...Sony's online is pretty bad and most people could care less about having a Bluray player right now.

Sony still has allot of time though... I think they desperately need a great EXCLUSIVE online game to push their console, along with a price drop. Time will tell... It won't take much to get the Playstation brand name rolling again, 2 or 3 GOOD exclusive games will defiantly breath a new life to the PS3.

Response to jb33:

I very much agree with all of the things you and several others have said. It seems that Bank of America also agrees with us.

In a recent Businessweek, the Bank of America said that even if the Playstation 3 were to have its price lowered by $200, it wouldn't matter, because the consumers are not interested in the Playstation 3 right now, because it has very few exclusive games.

More and more games are being released for PC and Xbox 360, but not Playstation 3.

Awesome games like Command & Conquer 3, Two Worlds, Overlord, and many others.

i didn't know B of A were videogame experts lol! just messing with you...

i would love to read that UTP, is it available online?

Response to daveydz3:

1. I am glad you accepted me as a Friend on Xbox Live.

2. There are plenty of articles online that talk about what was said in Businessweek magazine. Key parts of the interview are reported on several different websites I found for you. I just read the magazine, and that was the best source of information.

3. Here are some of the hyperlinks:

Businessweek Online (2007) PS3 Price Cut Too Little Too Late:

Dropping the price of the PS3 won’t ease Sony’s woes, says BoA analyst.

This particular article above from the Businessweek website specifically lists the problems Sony is facing beyond price: h ttp://www.businessweek.com/innovate/content/may2007/id20070529_903078.htm?campaign_id=rss_daily

CrunchGear (2007). Sony Needs to Drop the Price of the PS3 by $200 or It’s Finished: Bank of America. h ttp://crunchgear.com/2007/05/30/sony-needs-to-drop-ps3-price-by-200-or-its-finished-bank-of-america/

Sorry guys, the XBox 360 will never become as mainstream as the Wii or PS2 as long as they are charging people to play online. The majority of families avoid additional unnecessary monthly/quarterly expenses like the plague. They want to be able to buy something and play it, without being locked into a multi-year contract of expense. That's the reality of it, and part of the reason why the Wii is selling so well. If Nintendo wanted to charge people an extra $60/year to keep getting all the benefits of the console, they would have sold a fraction of what they have.

@madgunde...You have to pay for good features... Nintendo don't even offer online yet so it's really not fair to compare. It's not like M$ is forcing people to play online... One of the main reasons you buy a 360 is to play online because XBL trounces any online service to date. The Wii is NOT selling well because of extra online expenses...LOL. The Wii is selling well because it's a very catchy FAMILY console and also the cheapest next gen console available...The Wii is for kids but, made in a way that the whole family can interact.

I think the good sales of the Wii will die off allot sooner than the 360 or PS3 because it's really kind of a gimmick IMO. They suck you in with the cool new controls but, 90% of the games don't work or look well and play like crap...even for kids. The graphics leave you wanting more and the fact that they have yet to offer any kind of online play is just funny. Online is where it's at... I guarantee 50% percent of the people who bought a Wii this year will end up buying a 360 or PS3 sometime next year.

The 360 and PS3 have more allot more longevity in terms of sales because of the many different types of exclusive games and features they both offer. I do believe the Wii60 prediction will come true over the next 2 years. The people who bought the Wii for their kids will now look at the 360 because by then the price will drop to at least 250$...probably more like 200$ by next Christmas. The Wii is gonna help M$ sell consoles in a few years and they don't even know it because all of the Wii kids are now gonna be older and looking for something bigger and better. Sony won't be able to compete because M$ will have to low of a price tag and offer a better game selection by then. In my opinion the Wii60 prediction will come true unless Sony finds a way to lower their price severely.

is that so madgunde, as much as i love free stuff, i also love quality, and that is what live is, sheer quality, and remember, it did cost 2 billion to set up, did you seriously think they wouldnt charge for it, it serves as an extra revenue stream,