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View Full Version : Peter Moore talks Xbox360 price drop.



Medieval954
05-13-2006, 01:45 PM
Speaking of cost-reducing, Todd Holmdahl told Reuters in ... I believe it was September of last year that you have plans to cost-reduce the Xbox 360 every single year as part of the strategy.

Oh yeah. More than every year. It's not like, "January 1st let's take some cost out of the box." You have teams that are constantly looking at how you bring the box to a more -- you know, as componentry evolves... amortization, all of this stuff. It's complex stuff.

So people misquoted that as "price reduce."

Cost and price are two very different things.

It's feasible though.

Well of course.

So by launch window this holiday?

No, that's not what he said. He said you're going to cost-reduce the box every year.

I'm asking you though.

You're asking me to tell you I'm going to drop the price? We had a price drop on Monday when Sony announced their price. We obviously don't talk about price drops, and I can't think of any good reason right now that we would drop the price even further from the delta between what we're offering and what our competitor's are currently offering.
http://www.joystiq.com/2006/05/12/the-engadget-and-joystiq-interview-microsofts-peter-moore/

They were gonna cut the price at E3 Tuesday until Sony announced their PS3 price Monday night. :fire: Well, at least this pretty much garauntees a price cut this holiday. :D

VanDolPhan
05-13-2006, 07:48 PM
http://www.joystiq.com/2006/05/12/the-engadget-and-joystiq-interview-microsofts-peter-moore/

They were gonna cut the price at E3 Tuesday until Sony announced their PS3 price Monday night. :fire: Well, at least this pretty much garauntees a price cut this holiday. :D

I don't know how you got that out of it. It was a very clear shot at the PS3 pricing that they got a price cut simply by Sony announcing such a high price.

I wouldn't expect MS to put out a price cut this year. I could see them bundling a game first or adding the plug and play kit to the premium bundles etc (ala they did early on with the remote control) first before a price cut.

Medieval954
05-13-2006, 09:35 PM
I don't know how you got that out of it. It was a very clear shot at the PS3 pricing that they got a price cut simply by Sony announcing such a high price.

I wouldn't expect MS to put out a price cut this year. I could see them bundling a game first or adding the plug and play kit to the premium bundles etc (ala they did early on with the remote control) first before a price cut.

Oooh, you're right. I read that wrong. :lol: Duh me. Well, either way, the article did mention they were planning on a price cut per year, but I guess they can hold off on that plan now. Also, you're right, they could probably just thrown in a free game or what not right in front of the PS3 launch...though I'm still hoping for a price cut. :D

Agent51
05-13-2006, 09:51 PM
Oooh, you're right. I read that wrong. :lol: Duh me. Well, either way, the article did mention they were planning on a price cut per year, but I guess they can hold off on that plan now. Also, you're right, they could probably just thrown in a free game or what not right in front of the PS3 launch...though I'm still hoping for a price cut. :D

You read it wrong again :lol:

"... I believe it was September of last year that you have plans to cost-reduce the Xbox 360 every single year as part of the strategy.

Oh yeah. More than every year. It's not like, "January 1st let's take some cost out of the box." You have teams that are constantly looking at how you bring the box to a more -- you know, as componentry evolves... amortization, all of this stuff. It's complex stuff.

So people misquoted that as "price reduce."

Cost and price are two very different things."


Like he said "COST and PRICE are two different things. By cutting the COST of the 360 I believe they mean the cost of production and such, like what it costs MS to make the 360. This can be done a number of ways, such as cutting deals with manufacturers for the parts, maybe finding cheaper shipping, a more efficient manufacturing process, etc etc. Cutting the PRICE means dropping it from $300 and $400. Cost is reffering to what MS pays, price is reffering to what WE (the consumers) pay. So the article doesn't say anything about yearly price cuts, it says something about yearly COST cuts, meaning MS will start making a little bit more back off each each system sold everytime they cut the cost of production.

Even if they WERE planning yearly PRICE drops, it would be STUPID for him to announce that to the public, because then everyone would just keep holding out on buying one, they'd just keep putting it off "til next year". Plus, say something happened and MS started LSOIGN money so they couldn't drop the price any lower, if the consumers were told there would be a yearly price cut and then they DON'T drop it one year, people would go off.

Medieval954
05-13-2006, 10:35 PM
You read it wrong again :lol:

"... I believe it was September of last year that you have plans to cost-reduce the Xbox 360 every single year as part of the strategy.

Oh yeah. More than every year. It's not like, "January 1st let's take some cost out of the box." You have teams that are constantly looking at how you bring the box to a more -- you know, as componentry evolves... amortization, all of this stuff. It's complex stuff.

So people misquoted that as "price reduce."

Cost and price are two very different things."


Like he said "COST and PRICE are two different things. By cutting the COST of the 360 I believe they mean the cost of production and such, like what it costs MS to make the 360. This can be done a number of ways, such as cutting deals with manufacturers for the parts, maybe finding cheaper shipping, a more efficient manufacturing process, etc etc. Cutting the PRICE means dropping it from $300 and $400. Cost is reffering to what MS pays, price is reffering to what WE (the consumers) pay. So the article doesn't say anything about yearly price cuts, it says something about yearly COST cuts, meaning MS will start making a little bit more back off each each system sold everytime they cut the cost of production.

Even if they WERE planning yearly PRICE drops, it would be STUPID for him to announce that to the public, because then everyone would just keep holding out on buying one, they'd just keep putting it off "til next year". Plus, say something happened and MS started LSOIGN money so they couldn't drop the price any lower, if the consumers were told there would be a yearly price cut and then they DON'T drop it one year, people would go off.

:smackhead

Well, it's quite apparent that in my lust for a price cut, my reading comprehension has gone out the window. Let's all laugh at me. :grouplaug

Ok, I deserved that. Let me just end this by saying I would like a price cut so my poor butt can buy one before the year ends. Now let me go try and knock some sense back into myself. :wall:

Agent51
05-13-2006, 11:02 PM
:smackhead

Well, it's quite apparent that in my lust for a price cut, my reading comprehension has gone out the window. Let's all laugh at me. :grouplaug

Ok, I deserved that. Let me just end this by saying I would like a price cut so my poor butt can buy one before the year ends. Now let me go try and knock some sense back into myself. :wall:

:lol:

Well are there any games you feel you MUST have at this point? For me I was going to wait but then I discovered Test Drive and well, the rest is history. The thing is, I have barely touched my system so far. I own Fight Night Round 3 and Condemned and I think I've played like 3 matches of boxing and MAYBE 5 minutes of condemned. Both are great games, but I don't have time to sit and get into an adevnture-type game like Condemned and Fight Night just doesn't make me wanna rush in the house and play it, so my system is just kind of sitting here til TDU comes out. Hell, I haven't even set up my XBox Live account yet.

So Basically if there isn't a "must have" game for you, then you might as well wait, unless you are a super hardcore gamer that will play every single day. I've been so busy lately that I can't rally say I'm a hardcore gamer anymore, but maybe you'd have the time for it. If so, there has to be SOMETHING you can do to grab one. IDK how old you are, or if you have a job or whatever, but there's gotta be a way to get one if you really really want it. If you have a job, just save up, obviously, lol. If you're older and have a roommate or somethgin, see if he wants to go halfs, etc