Xbox 360 Price Cut Leads To 100-Percent Sales Increase

Why release a single block buster game with a two week pop when you can simply lower the price of your console and boost sales by 100%? That’s a question Sony may be asking themselves right now, as Metal Gear Solid 4‘s hype may have lasted years but the sales and console unit sale boots lasted a month.

Gamers show how they feel about costly consoles with their wallet. With 100% increases in sales, it’s clear that many gamers have been holding out from the “next-generation” of consoles because the price was too high. Now, Microsoft can report huge sales numbers this quarter with a special thanks to their price cut. Imagine the sales boost the PlayStation 3 would have if it was competitive in price?

Microsoft could have kept the savings of manufacturing costs to themselves but they chose to pass savings onto the consumers. The increase in unit sales means more households own the product and newly released games will probably see larger spikes now that people have invested in the 360 console.

End result, developers will want to produce games for the Xbox 360 because they’ve got a larger audience and publishers will be less likely to pick Sony as an exclusive because the 360‘s got sway in the market. It might not be a Wii in total sales records but it’s not half bad!

(Thanks, gamasutra)

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Electronic Arts Issues 1,000 Pink SlipsElectronic Arts Issues 1,000 Pink Slips

Electronic Arts is planning to lay off 1,000 employees, approximately 10% of their employees. In this layoff their also consolidating EA Black Box back into EA Canada. EA Black Box was spun off as a studio outside of EA Canada to work on such titles as Need for Speed but, with the layoffs arriving, they’re going to be merging the remainder of EA Black Box into EA Canada by June 2009. The remaining EA Black Box employees will continue working on Skate 2.

The pink slips should be issued by March 31, 2009 and we’re hoping the folks that have lost their jobs will find new jobs as soon as possible. An Electronic Arts representative said:

“This does not mean that the Black Box studio is closing. The studio is moving to our Burnaby campus to share the facility with EAC and other EA teams that operate out of our state-of-the-art facility. We will operate two distinct studios, each with their own distinct culture and teams, out of our Burnaby facility.” (gamespot)

EA hasn’t mentioned any specific franchise cancellation but we’re going to assume something is going to slip, it’s hard to imagine a company can lose 1,000 employees without impacting business operations. If EA was able to layoff 1,000 people without impacting day-to-day business, then they’re definitely hurting in the management department because that would be a ton of waste.

Big companies may cut costs during hard times but they said they’re, “implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities. The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers.”

We’re curious just how much EA is willing to risk on “creative” endevours considering publishers are already hesitant to break new ground. The next few years should yield great opportunities for smaller developers to put on their creative hat and open new doors and opportunities for themselves.

Episode 506: E3 Swag and Sony SagEpisode 506: E3 Swag and Sony Sag

This episode follows the three hour long E3 episode, but there was so much E3 to talk about, a lot of the show spilled over into this show, including the crew talking about the swag Jonah sent to them, and Sony’s “winning” of E3 in terms of media attention. There was going to be a Gaming History, but the episode ran long and they weren’t going to have a two hour podcast after a three hour one.

The news of the week includes:

  • Microsoft and Nintendo troll Sony over crossplay
  • Bethesda lawsuit says Westworld game stole Fallout Shelter code
  • Microsoft and Razer are working on Xbox keyboard and mouse support
  • Nintendo Switch could get its own new Monster Hunter games
  • Life is Strange 2 Episode One release date revealed

There was some Listener Feedback to last week’s episode, too.

Episode 549: PS4 CrossplayingEpisode 549: PS4 Crossplaying

The crew realize how prickly gamers are getting. Lootboxes may make them complain, but it won’t stop them from paying. Exclusive DLC? That seems to be a bridge too far.

The news includes:

  • Modern Warfare fans are cancelling pre-orders over Spec Ops exclusivity
  • PS4 cross-play features reportedly out of beta, now available to all developers
  • French CS:GO players can preview loot box contents now, but still have to claim them

Let us know what you think.