chowderhead

In the May 2003 EGM magazine, Quartermann's column writes that his sources have heard that there may be a price drop for all three consoles as early as E3 which is in mid-May.

I don't have a Gamecube and am interested in purchasing one. Currently, their promotion is for a free game with purchase of the console @149.99 and is slated to end at the end of May.
I have read about the serious price cutting on games for the Gamecube because some of them have not sold as well as expected i.e. $19.99 for Metriod at BlockBuster, the Sega sports games for $9.99.


I think a price drop to $99 for the console is about the same as $149 and a free game. Anybody think that they would do this to boost sales.
I think at $99 with MSN dollars, I would pull the trigger.

edytwinky

If the PS2 was cheaper, I might consider buying it with some college graduation money.

speedyray

I agree that some Gamecube games are being reduced, but mostly sports games. Metroid is selling well, the BB price is a fluke. I doubt it will stay that price very long.

It might entice people. Saving money is saving money. People on the fence see it 50 bucks cheaper, impulse strikes sometimes. It will also help people on a tight budget buy a second or third system.

Superboy

The console wars are really heating up. Even though the PS2 is basically the worst deal out of all 3 major systems by having the least tech specs per dollar with no freebies, it's still outselling the Xbox and Gamecube. PS2 software is also destroying the market...i mean, 4.4 million sales of Vice City compared to a meager half million of Metroid, Super Mario Sunshine, and Zelda?

I doubt the PS2 will drop in price, unless Microsoft does so first. The Gamecube will likely not drop to $100, because then they'll be selling a next-gen console for the same price as their next-gen portable - so they'll probably drop the price of both systems simultaneously so as not to alienate consumers.

chrisih8u

Good Point. But they could put another good bundle together.

Lastblade

I want a ps2 to play Winning Eleven.... darn I really wish PS2 is $100 (how much I think it is worth

Groucho

We actually haven't had this discussion for a while, which amazes me. This time last year there was a new topic just about every week. I believe the last price cuts were in June of last year, so it's been almost a year.

jrutz

I'm invested in Electronic Arts, and read the biz news on them daily to gauge fluctuations in the sector vs. the market. There was a news story a month or so ago about all the software companies basically depending on a price drop to hit their targets for 2003, because they need that increased console base across all three manufacturers to compensate for the declining PSX market.

Sony basically said it does not need to drop in price, and that in turn hit the entire sector negatively. Software manufacturers said even if Sony decided to drop the price to $179, that wouldn't be enough for them to hit their targets. They are depending on a $50 price drop across the board ($25 for GC), and now that it's probably not going to happen, the sector has seen some correction.

My guess is, expect to see the XBox lead the pack with a price drop to take market share from the PS2, Sony to stay at $199 but include the network adapter or title as a pack-in, and...well, who knows what the GC needs to do to stay afloat. Keep in mind though MS is going to be debuting their new compact XBox design, which effectively drops the manufacturing cost per unit, so they could drop to $149 as the price point for the new console, liquidating the old inventory in the process.

Jeremy

spankyj

The one thing to take into account is that the software companies are depending on a price drop to hit their targets. Sony, MS and Nintendo won't be influenced by the forecasted estimates of these game makers in making their price decisions.

Although I'd like to see a price drop and the manufacturing costs have become more efficient - I'm sceptical that any price drop will occur.

The Franchise

For Sony and the PS2 the case is similar to Rockstar and GTA. The price will not drop until people stop buying the console at the current price. I mean GTA3 is still not $20 and it still sells pretty well. The PS2 has massive mindshare with the public and until Sony sees the market slowing, there's no reason for them to drop the price.

I often wondered how Japan had such high week-on-week console sales. Hell, the PSone still sells decently there.

The GC game price drop is a bad sign for Ninty fans. Even though they clobber everyone when it comes to handheld sales, their console sales are near stagnant. I think they are in the most critical position when it comes to eroding market share. I know they have deep pockets, but not as deep as Microsoft, which has made a surprising and commendable foray into the console market with XBOX.

gcribbs

I expect Sony to drop the PS2 price to $159-179 in May. The price range is due to whatever MS is going to drop to. If MS goes down to $149 Sony will match them. Sony will not allow MS to be lower in price than them unless MS drops a huge amount like down to $99 in which case Sony will go down to $149 and see what happens.

The GC will drop a smaller amount down to around $129 maybe as low as $119. I do not expect to see them get to $99 until next May unless the other consoles really do a huge drop.

Captain Harlock

I'd expect a similar scenario as last year. Sony will deny any price cut right up untill Microsoft annouces their intentions. Then Sony will counter by cutting the price to match Microsoft.

One thing I've read is that in Japan, Sony has bundled the PS2 with Ratchet and Clank. If the price cut happens with Microsoft offering some sort of bundle you might see Sony throwing in Ratchet and Clank for a short time.

Groucho

If Sony and Microsoft do a price drop down to say, $149, one way Nintendo could counter wihtout a price drop of their own is by either bundling in a) the original GBA (not the SP) or b) the forthcoming Gameboy adapter for the Cube.

Superboy

Kids these days are so spoiled. I remember when the original PSX came out it was $300, and it only dropped after 2 years. PS2 hardware is probably twice as expensive to manufacture as the original PSX.

Only 2 years into the next gen console wars and we're already talking major warfare. It's all about big wigs. We've got 3 companies, all who have series power and control issues. They don't need a price drop, they need therapy.

chowderhead

These executives are not stupid. They know that market shares mean a lot in terms of the public perceptions and 3rd party development and exclusivity.
Competition is GREAT for the consumers. As much as I dislike MS in other areas, I am thrilled that there are 3 major platforms and competitors. This leads to hopefully better games and lower prices. I don't care if these three companies are power hungry misanthropes as long as they all produce a quality system which leads to quality games and lower prices.

Plus, there is a widely circulated rumor that Nintendo does in fact make a small amount of money for each console they sell. I believe the other two take a lost in order to try and recoup on the licensing fees and software.

gcribbs

actually both Sony and Nintendo make money on their consoles right now. The last I heard Sony made close to $20 for each console sold. the only company losing money is MS and this is in large part due to the agreements they have with their suppliers. MS expected console prices to stay higher for longer than they did plus they expected higher console sales which would have translated into higher licensing fees due to more games being sold.

madcougar

It's nice to read a post every now and then from someone who isn't a total shmoe (and I'm refering to people who console hate for some reason). I have no intrest in the X-Box, and right now only own a Gamecube, but I have no intrest in seeing MS leave the market. And I'm sure they won't. I'm amazed at how much pleasure some folks take out of saying that Nintendo is going third party and such. Competition is good. We win. Monopolies are bad. We lose. Pretty simple.

kvrdave

I have about 7 Xbox games and no console, so I hope they drop soon

mr.snowmizer

PSX did not take two years to drop. It fell to $199 right around, if not during, E3 of 1996.

There was no way I was paying the initial price since it was obvious that there'd be a reduction before the N64 hit the shelves, and by waiting the eight or nine months, there were plenty of bargains on early games... X-Com, by that point, had dropped to $20; it goes for higher than that now on eBay.


As for upcoming price drops, every year they happen at E3, and every year it seems to come as a shock to some people. Summer is the slow time of the year for console sales; price drops are required to spur sales. If 'average potential videogame system owner' has passed up these consoles at this price since well before Christmas, he's not going to suddenly buy it in the dog days of July and August.

And once one drops, they all drop. You can't fight off a competitor's drop with a bundle. If you want an advantage, it has to be in the bottom line of how much somebody's shelling out at the cash register.

edytwinky

Don't you just love competition?

Roan

Here's an article about a European price drop for the Xbox.

http://www.msnbc.com/news/898296.asp?0cv=CB20

young

here's cnet's article on the xbox price drop in europe:

http://news.com.com/2100-1043-996371.html?tag=fd_top

belboz

If MS does drop the price here in the US, you can expect them to be very tight-lipped about it right up to the moment they announce it. The last thing they want is a repeat of last year.