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Pachter: Xbox 360 Needs a Price Cut

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Pachter: Xbox 360 Needs a Price Cut

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Consumers are waiting for the Xbox 360's price to drop, says Pachter, and sticking with the current price is hurting sales.

Wedbush Morgan analyst Michael Pachter believes that in order to maintain Xbox 360 sales at their current levels, Microsoft will have to rethink its "stubborn" pricing and drop the price of the console below $299. Commenting on Microsoft's recent financial statement which showed an 8% drop in sales, Pachter said that until Microsoft cut the price, it would continue to see sales decline.

He didn't think that sales had dropped to a point that would compel Microsoft to make the 360 cheaper yet, but said that it would happen eventually: "I don't think that this is a problem for them, as long as sales remain near current levels," he said. "When they drop by more than 10 - 20%, we'll see a price cut to spur sales."

Pachter said that the 360's $299 price point was a barrier and that although Microsoft was offering consumers more and more for their money, the price of the console had remained the same for two years, and people were waiting for a price drop. "I don't think that there are many consumer products that sell more each year without a price cut," he said.

Source: CVG

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Well, I think this was obvious the moment the told us it would cost us $300. Hopefully, for those who like the idea of Kinect, it will drop in price soon.

Just another reason why I like Nintendo.

Microsoft eats enough of my income as it is whenever they make a better OS and stop supporting their old OS's...

What will Pachter's next wonderous prediction be? Perhaps that many people are angry at Kinect's pricing and that they too are waiting for a price drop? Oh how insightful he is!

Honestly, this man's crap isn't worth the virtual paper the it's written on. He either tells us the obvious or is completely and utterly wrong.

I hate how the escapist always puts out Pachter's most obvious statements into 'news articles'. He has plenty of good things to say in his Gametrailers spot every week but I don't know, do you guys just do it for the lols? I remember he predicted the Xbox 360 Slim just DAYS before it was released at E3, but you didnt care to mention that, did you?

OK, I'm joining the side of the people who are saying Pachter's words aren't newsworthy.

Pachter's words aren't newsworthy.

Chesterfield Snapdragon McFisticuffs:
I hate how the escapist always puts out Pachter's most obvious statements into 'news articles'. He has plenty of good things to say in his Gametrailers spot every week but I don't know, do you guys just do it for the lols? I remember he predicted the Xbox 360 Slim just DAYS before it was released at E3, but you didnt care to mention that, did you?

Well here is the problem. Pachter has a niche job and he has made a monopoly from the video game industry to be video game analyst. The only reason he is validated is because of his experience working for an analyst company and using that he has been able to build a brand off of his name.

I'm getting rather tired of hearing from Pachter. Aren't there any other worthless "analysts" that we can laugh at.

Chesterfield Snapdragon McFisticuffs:
Xbox 360 Slim

It's S. Xbox 360 S. Just because Sony makes new versions of their consoles and calls them "Slim" doesn't mean Microsoft does too.

Getting a bit sick of this blatency, whats next Pachter? - "Study reveals that the Xbox 360 will require an electrical input in order to function"

Ok, ok, extreme example, but you get the drift.

Chesterfield Snapdragon McFisticuffs:
I hate how the escapist always puts out Pachter's most obvious statements into 'news articles'. He has plenty of good things to say in his Gametrailers spot every week but I don't know, do you guys just do it for the lols? I remember he predicted the Xbox 360 Slim just DAYS before it was released at E3, but you didnt care to mention that, did you?

Except people were constantly suggesting there'd be a 'slim' 360, for the past four and a half years. Pachter included. It was about the tenth time he'd said it. He had to be right eventually.

Here, I'll make some Pachter-level predictions of my own:

Microsoft will continue to release Halo games.
We can expect to see new consoles announced by Microsoft, Sony and Nintendo at some point in the future.
Lower prices will increase unit sales.

Holy shit, I'm an industry analyst!

I dunno, usually I agree with Patcher...but on this...if Microsoft and Sony want a ten year life cycle from their consoles, I'm going to go out on a limb and say that they are not going to be able to keep consistantly high sales figures...

Generic_Dave:
I dunno, usually I agree with Patcher...but on this...if Microsoft and Sony want a ten year life cycle from their consoles, I'm going to go out on a limb and say that they are not going to be able to keep consistantly high sales figures...

Agreed this why there going ultra casual to explore new markets

Logan Westbrook:
"and although Microsoft was offering consumers more and more for their money..."

Hahaha no, it offers people the joy of a faulty ventilation system.

If it cuts down to about £50-100 I'm going to get one.

How about cutting the price of Kinect?

Well whatever the story,I'm not paying another 300$ for a fucking rectangle thats just going to RRoD in 3 months and then wait another 2. Hell I've been through 4 of'em already and now they want an additional 100+ dollars to "fix" what the fucked up 4 times already? Ummm no. Thats Microsoft's half-assed nature trying to save a buck in productions..
"Non-lead based solder"? Wtf?

Silent Eagle:
"Non-lead based solder"? Wtf?

Solder traditionally was a lead-tin mix. The electronics industry has been eliminating lead from the solder it uses to make electrical connections for the past 10 or 15 years. This was to reduce lead poisoning both in the industry and in the market. Now they use non-lead tin alloys to get similar melting-flow-cooling properties. Unfortunately, one of the benefits of lead was the elimination of "tin whiskers" that can cause shorts. This is the current "big issue" in solder chemistry.

http://en.wikipedia.org/wiki/Solder

Silent Eagle:
Well whatever the story,I'm not paying another 300$ for a fucking rectangle thats just going to RRoD in 3 months and then wait another 2. Hell I've been through 4 of'em already and now they want an additional 100+ dollars to "fix" what the fucked up 4 times already? Ummm no. Thats Microsoft's half-assed nature trying to save a buck in productions..
"Non-lead based solder"? Wtf?

Lead-based solder is nigh-illegal in most of the world. Even where legal, there are issues with disposal.

Gutted to deal in dollars. Its £200 here, and thats brilliantly cheap considering.

Once I get a new telly, this is next.

So I can get 120 gb PS3 for 299. Or I can get a 250 gb 360 for 299. But the 360 needs a price drop? Really? I guess that extra 120 gbs is valued in the negatives.

Scrumpmonkey: Pachter needs to stop pointing out the fucking obvious.

wooty:
Getting a bit sick of this blatency, whats next Pachter? - "Study reveals that the Xbox 360 will require an electrical input in order to function.

You gained a sincere chuckle out of me.

Honestly, I am hoping they will cut the price, I am itching to get that "Slim" version. Especially for the wi-fi and bigger HDD and all.

Goddamn people. You don't NEED the new fancy 360. The arcade unit is 150 and it comes with Viva pinata (meh) and Banjo Kazooie (I swear it's one of the best games on the entire system.). Drop in a cheapie HD and you're set.

I love how people are calling the newer version of the xbox 360 the xbox 360 slim. That thing is not slim at all, it's more hour glass shaped.

Pachter is also the guy who thinks that activision needs to start charging a subscription fee for call of duty.

I think Pachter needs to shut the fuck up.

Ertol:
I love how people are calling the newer version of the xbox 360 the xbox 360 slim. That thing is not slim at all, it's more hour glass shaped.

It's slim as in it's a normal xbox that's been stepped on by Ron Perlman.
Wow pachter, are you psychic!? I honestly doubt anyone apart from Activision (thanks for backing kotick's subscription plans, you traitor to the free world!) is listening to this moron anymore. He either states the blatantly obvious or downright fallacies.

Hiphophippo:
Goddamn people. You don't NEED the new fancy 360. The arcade unit is 150 and it comes with Viva pinata (meh) and Banjo Kazooie (I swear it's one of the best games on the entire system.). Drop in a cheapie HD and you're set.

I thought they'd scrapped the Arcade range, forcing people to pay for at least a machine with a 120gb HDD now? I could be entirely wrong here, I'm in the UK btw.

That's the moment when they lost me as a potential customer, I've already decided I can't risk preowned due to their shoddy track record in hardware failure, and now I can't buy a new arcade console and add a hard drive later on.

I flatly don't have £200 to blow on a machine for the few games I want that are not being ported to the PC, I just hope they're going for the ten year cycle as I still play my PS2, and maybe in 2 or 3 years I can afford to get a 360 for £100 or so and start catching up.

1.Cut the price of Kinect 99$ is pushing it
2.Put a better 360 in the bundle, like more memory

Lets lower the PS3 price as well those things are expensive

Seriously, who pays people like Pachter to sit around and apply simple logic to the market?

"He didn't think that sales had dropped to a point that would compel Microsoft to make the 360 cheaper yet, but said that it would happen eventually."

So the 360 will get a price cut in the future, but it might not be yet. Really? What a spectacular example of specialist knowledge.

Redlin5:
Well, I think this was obvious the moment the told us it would cost us $300. Hopefully, for those who like the idea of Kinect, it will drop in price soon.

Just another reason why I like Nintendo.

Microsoft eats enough of my income as it is whenever they make a better OS and stop supporting their old OS's...

That makes no sense, Nintendo took the longest of any of them to do a price cut.

OT: The 360 definitely needs a price cut, $130 for the 360 Arcade was great, and $150 that it's currently at is decent, but knowing it'll go back up to $200 once the current models sell out doesn't bode well for MS.

Hiphophippo:
Goddamn people. You don't NEED the new fancy 360. The arcade unit is 150 and it comes with Viva pinata (meh) and Banjo Kazooie (I swear it's one of the best games on the entire system.). Drop in a cheapie HD and you're set.

Banjo Kazooie is overrated. I was very enthusiastic about getting it, but when I actually did I was disappointed. I'll finish it through at some point, and then trade it in for new games, but it's hardly a system seller or really something noteworthy to be packaged in with the system.

Durh. I wasn't going to buy the new one until the price dropped. $300 is far too steep for me at the moment.
So for now, suck it Microsoft, drop the price!

Tenmar:

Chesterfield Snapdragon McFisticuffs:
I hate how the escapist always puts out Pachter's most obvious statements into 'news articles'. He has plenty of good things to say in his Gametrailers spot every week but I don't know, do you guys just do it for the lols? I remember he predicted the Xbox 360 Slim just DAYS before it was released at E3, but you didnt care to mention that, did you?

Well here is the problem. Pachter has a niche job and he has made a monopoly from the video game industry to be video game analyst. The only reason he is validated is because of his experience working for an analyst company and using that he has been able to build a brand off of his name.

It's not his entire job, its a part of it. This story obviously isn't newsworthy so I don't understand why the Escapist feels the need to print it along with 90% of his other statements.

I'm surprised no one has brought this up, but to 'upgrade' a current Xbox 360 Elite to an 'S' from a stock configuration is at least $100 (200 if one doesn't have a 250GB HDD). Let me point out the biggest thing that he had not mentioned. The Xbox 360 'S' has built in WiFi. That's right, owners do not have to shell out $100 for wireless when it is built into the Xbox 360 S. So please...At least put in all the facts before jumping into 'the Xbox 360 S is too much' stuff.

migo:

Redlin5:
Well, I think this was obvious the moment the told us it would cost us $300. Hopefully, for those who like the idea of Kinect, it will drop in price soon.

Just another reason why I like Nintendo.

Microsoft eats enough of my income as it is whenever they make a better OS and stop supporting their old OS's...

That makes no sense, Nintendo took the longest of any of them to do a price cut.

But the Wii cost like half the price (or however much cheaper) in the first place and still have stupidly high sales almost 4 years later - still selling more than either of the others. Why would they drop the price? The already added another game and the motion plus (which admitedly should have been there from the start - I think since I loyally bought a launch Wii that I should have been given one for free).

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