I think Microsoft didn’t charge enough for the 360.
The beginning of a console generation has typically been for those with deep pockets or an unhealthy hardcore jones for videogames. These people are willing to smack down big bucks for the latest technology. The price of 360 was too low to keep the launch confined to that group and it was a big mistake in my opinion. With a higher price tag, Microsoft would have made more money, made sure sellouts wouldn’t have lasted for months after Christmas and still sold through all the units they had to sell before the holiday. The demand for a new system was far higher than most people anticipated, especially given the early demise of the original Xbox, a system that will probably be gone from store shelves by February 2007.
Yes, I’m saying gouge your early adopters and make the system a luxury item again. I mean, why not? What’s the benefit of pricing lower and selling out anyway? No one who wants one will be sitting there saying “It’s great it’s so cheap!” if they can’t buy one.
He actually makes a lot of sense. If people are able to buy 360s at retail and sell them for double on eBay, it’s clear that Microsoft is ignoring the “demand” portion of “supply and demand.” I have to wonder if the days of selling consoles at a loss are coming to an end.
If they did that you wouldn’t get the media buzz about it being the “hot” item of Christmas 2005. I think a lot of people got a 360 just so they could feel special that they had the “hot” item. Looking at Craigslist with all the 360s for sale I guess a lot of people probably regretted buying one.
I have been wonder why they haven’t been doing this atleast at release time when supplies are low. It took Rock bands sometime to catch on. The one’s that would sell out (most of the Good seats going to scalpers). Started to charge scalper prices for good seats. Charge more until supply can meet the demand. The only one it will hurt is the little kid who camps out all weekend with his grass cutting money to buy it. But he can wait a few months.
I think Sony is going to do this with PS3 though, since they say it’s going to be expensive.
THink about this next time you see a blackout.
The real question is why would anyone play a computer game anyway?
Do business stuff only. If you need electronic entertainment, surf the web for porn or read Dvorak Uncensored.
There are other sides to this…
1. Why pay for hardware that you can get for your computer, at 1/2 that amount.
2. If you DO have a decent product, GET the first ones OUT and make the next ones abit more expencive, make them DROOL, then raise the price.
But, most of the companies look for Program control. They dont want ANYONE releaseing a game, without their NAME or without THEIR controls, over network, or ANYTHING..
“If you DO have a decent product, GET the first ones OUT and make the next ones abit more expencive, make them DROOL, then raise the price.”
This doesn’t really make a lot of sense to me. I think the author of the article has it right when he says Microsoft (or Sony) should charge a lot of money at first because all the hardcore fan boys will be willing to pay the most.
The hardcore fanatics are first to adopt any new pricey technology, e.g., the first HD tvs were not bought be novices on a whim. Microsoft should gouge those early adopters and then as production ramps up, it should start lowering prices to get the less fanatical to buy.
Yeah, $649 AUD for the Premium 360, that’s really underpriced.
“Yeah, $649 AUD for the Premium 360, that’s really underpriced.”
I have no idea how well they were or are selling in you area. But over here in the US at 400+ bucks people were able to buy them at retail and re-sell them on eBay for over twice that. That certainly indicates that were underpriced. Heck, the mere fact that there were shortages is evidence that the price was too low.
It’s all marketing. Doesn’t anybody remember all the stories that MS was deliberately undersupplying so it could get the Christmas sell-out buzz?
WTF?!?!?!
This is it, the world went nuts! Could somebody please stop the world so I can get out?
I just can’t belive someone said the price of any product is too low, no price is ever too low… OMG……..o…..m……g….. you are all nuts.
If it was possible I would like the 360 to be sold at 1€… in fact I would like the 360 to be given away….. no, I lie, what I would like is to be paid to have a 360!