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The 2010 was the last year when developers of current-generation video game consoles could sell them at current price-pints. All three platform holders - Microsoft, Nintendo and Sony - will have to cut the prices of their consoles in order to sustain sales, according to a well-known industrial analyst.

"After maintaining console prices at historically high points throughout 2010, all three console manufacturers appear to us to be poised for price cuts in 2011. U.S. PlayStation 3 sales were flat in 2010, while Wii sales were down more than 25% and Xbox 360 sales up over 40%; we think that Microsoft is in the driver’s seat on price cuts, and expect the company to lower price on its console at the first sign of a year-over-year sales decline," said Michael Pachter, an analyst with Wedbush Securities, reports Industry Gamers web-site.

At present the most affordable versions of PlayStation 3, Xbox 360 4GB and Wii cost $299, $199 and $179, respectively. The analyst believes that the platform holders can trim the prices by $50 this year in order to boost software sales by 5%. But in addition to reducing the prices (which is more likely to happen in the second half of the year), the companies may introduce competitively priced bundles. For example, Microsoft and Sony could  may bundle Kinect and Move with X360 and PS3.

"Since the 'whisper quiet' black Xbox 360 was launched in June 2010 and Kinect launched in November, we think that sales will be up year-over-year at least until June, and we don’t anticipate a price cut for the 360 until then. Microsoft has the ability to bundle Kinect with any of its 360 models at a compelling price point (we remain convinced that the manufacturing cost of Kinect is under $60), and we expect to see a Kinect console bundle priced attractively by June 2011 if not sooner. A $299 price point for a Kinect/250Gb 360 bundle would force Sony to bundle Move with a PS3 at the same price point, and we think that Wii sales will suffer mightily with such competitive pricing," explained Mr. Pachter.

Naturally, neither of the mentioned companies commented on the news-story and no company would ever predict a price-cut. But indeed, the one is inevitable simply because the consoles turn five or six years old in 2011 and have not seen a price-cut for a long time.

Tags: Microsoft, Sony, Nintendo, Xbox, Playstation, Wii, Business

Discussion

Comments currently: 5
Discussion started: 02/02/11 12:47:29 AM
Latest comment: 02/08/11 05:50:54 AM
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1. 
Microsoft, Nintendo and Sony - will have to cut the prices of their consoles in order to sustain sales.

So they were daft about what they said about nintendo and now they state the obvious

They have to cut prices....
Why..
(wait a sec doing a study.......done)
...and the result is because it shows customers they are getting a better deal than last year which makes them think their saving money.....DUH!!!

These people crack me up.
0 0 [Posted by: efex  | Date: 02/02/11 12:47:29 AM]
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2. 
State the obvious and get paid well to do it. I definitely got onto the wrong career track.
0 0 [Posted by: Molecular  | Date: 02/02/11 06:10:19 PM]
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- collapse thread

 
Ditto !
0 0 [Posted by: East17  | Date: 02/03/11 01:28:21 AM]
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3. 
The real question is when the hell are the next gen consoles coming? Microsoft and Sony can't add a feature that the Wii has had since launch and expect that to extend the life of their consoles. Their GPU is equivalent to a 7800GTX which is 3 generations behind modern PCs. This can be seen with the launch of BF3. PC launches in the Fall and the consoles have to wait for DICE to dumb the game down for their old hardware until the "Holidays" which could even be after Jan 1 2012.
0 0 [Posted by: LedHed  | Date: 02/06/11 07:51:20 AM]
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4. 
You know what all these remind me of?
Remember the times when Sega added a bunch of add-ons to their genesis? the sega 32X, the sega CD? yeah, they didn't work.
Remember the Ultra 64? of course you don't, it was so much of a failure it didn't even make it to the US.
Remember the Jaguar? nope? do you rememb er the Jaguar CD? neither? that's normal, they failed, and add ons always failedfor a simple principle : you had to have the console itself to use the add on, which was priced at the same price as a new console.

0 0 [Posted by: Kurata  | Date: 02/08/11 05:50:54 AM]
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