Choose: Motion Controls or Console Price Drops?
Posted on Tuesday, November 23 @ 18:09:26 PST by Daniel BischoffThis is new ground we've broken here. Most console manufacturers are planning on selling you the same hardware for 10 years. If the PS2 can do it, surely the Xbox 360, PS3, and Wii (*ppffffftttttt*) will last a decade as well... right?
One way Microsoft and Sony are hoping to keep you on the same graphics chips, disc drives, and processors for that period of time is through the introduction of new motion controllers. $500 Million dollars in marketing budget for the Kinect is nothing to shake a stick at and a redesigned dashboard furthers the illusion that you're playing on new hardware.
One analyst believes that this is not the way to maintain console sales and that software sales will suffer the same way.
Cowen & Company analyst Doug Creutz says that "None of the hardware manufacturers have reduced their hardware prices since the last holiday. However, our survey results indicate that prospective hardware buyers have reduced the price that they are willing to pay for hardware.
"In our survey last year, average prices that our respondents were willing to pay matched fairly closely with prevailing hardware retail price points, but this year the gap is $30 or more for all of the three consoles."
Thirty bucks doesn't sound like a lot, but it sure does make that price tag look more welcoming to less dedicated buyers.
"We believe that the hardware manufacturers have left unit sales on the table by not reducing price points from $199 to $179 and $299 to $249 for the applicable consoles, and that doing so would have driven a more significant boost to hardware sales than the release (for Microsoft and Sony) of new motion-sensing peripherals.
"We view continued stubbornly high hardware price points as one of the key factors dragging down software sales."
Of course with less platform owners, there's less of a market for software developers to sell to. Seems pretty straight forward, but I doubt anyone with a thirst for Call of Duty doesn't already have a console and a copy of the game. What isn't accounted for in that sentiment are all the friends, room mates, and little brothers who haven't gone ahead and bought their own console to play the game on.
Here's hoping holiday sales of Kinect and Move are not all the manufacturers had hoped they would be so gift cards can be lumped together and used for new consoles.
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