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)

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XBLA’s Braid Needs More SalesXBLA’s Braid Needs More Sales

XBLA offers great opportunities for the indy developer but everything comes at a price. Over the last three years Braid‘s developer Jonathan Blow spent a reported $180,000 to create the popular Braid title on Xbox Live. He’s going to need a lot more sales before he can celebrate the highly valued, highly reviewed title.

The Independent Games Festival was kind to him, giving him the “Innovation in Game Design” back in 2006, since then he’s put his money where is mouth is; his own money. There are good times and bad times when you’re discovering your dreams. The reviews surely made him feel great about the work he has done over the last three years but a review won’t pay the bills.

It may be a hard road ahead for Jonathan, hopefully at least breaking even on the project. Although he may not look back at the game as a financial success we can only imagine he’ll have a lot easier time getting funding or publishing for his next title, if that’s the path he chooses.

(Thanks, Kotaku)

Episode 476: A Man ChoosesEpisode 476: A Man Chooses

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It’s not all BioShock, however, as the following news items are discussed:

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PlayStation 3: Not About Quantity, About ProfitabilityPlayStation 3: Not About Quantity, About Profitability

The Xbox 360 price drop rumors flow like water and it’s all but officially been announced at this point. What about PlayStation 3 and their price? No.

Nobuyuki Oneda, the Sony’s chief financial officer said, “our plan is not to reduce the price. Our strategy is not to sell more quantity for PS3 but to concentrate on profitability.” (gamespot) This makes complete sense coming from their chief financial officer, as their motivation is to make money, not lose it.

The question remains, how will they actually make money if they’re no longer in the race for competitive market prices? Considering game licensing must Net them some amount of profit Sony’s idea seems to be the exact opposite of their original PlayStation method: saturate the market and sell them all games.

So far we’ve seen very few “need to have” games for the PlayStation 3 console while Xbox 360 continues to build a substantial library and Wii continues to break sales records for apparently no reason. When a game publisher has to decide on a platform to launch a new game, why would they choose the one that doesn’t care to be competitively priced in the market? The one that doesn’t care about quantity of sales?

Sony intends to reverse the entire razor blade philosophy where one sells a cheap razor and charges users for the blades over and over again. Their take on this concept is to sell really expensive razors and put out small half-quality blades. Is that a good market strategy at this point?