Friday, October 24, 2008

price cut

I recently, very recently blogged about Microsoft's Xbox 360 and how efficient they were in getting the problem fixed on peoples Xbox360, if only they had taken some more time they wouldn't have needed to continue to keep fixing everyones Xbox 360, but they are stuck with this problem and handle it in an effecient manner. Recently to make themselves competitive in the market again Xbox 360 just had a price cut on tehir console's. The core system which comes with a 60 gb hard drive is now $299 and the upgraded "elite" version with 120gb is now only $399. This is still alot of money but from what they were when they first came out it has dropped enough for people to go out and purchase one of their sytems apparently. According to Microsoft "the payoff for the paycuts have been immediate...they have seen a 100% increase in sales since the pay cut has occurred." This raises the question to me as to why this drop in price would occurr. Apparently Ps3 has seen their system have a steady increas over the past year more so in recent months and Xbox360 has seen a decline. The console though that everyone is chasing is the WII. They have not slowed down their sales and with the upcoming holiday season have put into production double the amount they would normally have during a regular season. Any console makes for a great gift for a loved on or family member, with these price cuts its the perfect time to look into getting one for the upcoming holiday season.

1 comment:

Tall Blonde German said...

I agree that most consoles have become too pricy for most people nowadays. When I was young I saved all my pocket money to get a Nintendo NES and I think I remember that a game was about 50 DM, which I think used to be close to $40. Nowadays, consoles are so highly sophisticated that a teenager has to save quite a bit of money to actually afford just the console! Plus, sometimes it doesn't even come with any games or joypads, so even more money is necessary to at least get started. I think the consoles have entered a level where too much competition have bumped up the price level into regions where a child/teen (the original target audience) can not afford them any more. This shift of target audience gets away from the original idea of the consoles. Fortunately holiday seasons help a little with the prices, but still I think that most consoles are way too sophisticated for the expectations of a normal teen and way too overpriced for a middle class family in times of today's economy.