Console price cuts seem to be on every industry watcher's mind of late, with Broadpoint AmTech analyst Ben Schachter going so far as to say that the health of the industry depended on such cuts. Yesterday, Ubisoft CEO Yves Guillemot and THQ CEO Brian Farrell chimed in with their own takes on the matter.
Both refused to outright confirm any price cuts outright, but Guillemot coyly implied that competition might force Sony, Nintendo and/or Microsoft to make a move. "We think the battle between the three manufacturers will really be very fierce this year. All of them will really push hard to get this Christmas sale," said Guillemot according to Joystiq. "They will act, we think."
Farrell, however, was willing to be more openly speculative. "The fact that the Wii is still at its launch price and PS3 is still at a relatively high price point by historical standards," ventured Farrell. "Just look at the hardware numbers and it would seem that a price cut would be in order by at least two of the three manufacturers."
"Price cuts, again – they are factored into our guidance, our internal model," Farrell added. "We do anticipate price cuts coming this Fall. Something on the higher end of the range certainly wouldn't surprise us."
If Farrell doesn't definitively know about an impending price cut, he's certainly planning like it's going to happen anyway. While some price cuts seem almost fated this holiday period, the real question is for which systems and by how much.
1 Comments
July 30, 2009
This is similar to what I was speculating. I think some of these companies have been informed about a price reduction. I think Nintendo will have one and Sony too and if Sony drops price Microsoft will be right there dropping the 60GB to $250. So instead of fear of competition I think it could be more of a strategy to move potential hits to 2010 in hopes of better success.
If it is fear, then 2010 is going to be just as crowded. Not that it will guarantee success but December and January or very low game months. Some of these guys might want to try releasing then.