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Console price cuts will not spark sales, says analyst

According to Cowan and Company analyst Doug Creutz, the upcoming expected price cuts on the Sony PS3, Microsoft Xbox 360 and Nintendo Wii may not help spark sales in the United States as predicted.

Creutz says the ongoing economic downturn has consumers still pressured and even large discounts may not help boost the lagging market.

"We are concerned that, given pressures on the consumer, price cuts may not have the stimulative impact to hardware and software sales that they have had in the past," says Creutz.



The analyst did note however that price cuts would benefit each console, if the Wii was cut to $199, PS3 160GB down $100, and the Xbox 360 Elite to $299.

"We expect hardware price cuts on all platforms by September, with announcements possibly as early as next week’s Gamescom," Creutz noted, via GI.biz.

Written by: Andre Yoskowitz @ 13 Aug 2009 15:29

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• 5 comments

• ZippyDSM

  I hear a 299 price point on the PS3, any truth to that?

  13.8.2009 17:46 #1

• Coyote42

  Of course it won't have the same impact as in the past. Everyone that wanted a console would have bought one by now. I imagine not 20% of a consoles lifetime sales is after the first 4 years.
  The only benefit will be for the poor RRoD owners since most of the free exchange warranties are up.

  13.8.2009 18:23 #2

• Tecbot

  well its actually going to...along with the holiday season and the lineups coming its kinda hard not to, do these guys actually get paid for being so dumb?
  
  Console sales actually lag in the beginning years as everyone groans over the price like anything new...the biggest sales are when the casual market finally starts to see a price they like and the masses flock to cheap hardware and cheap software...I dont understand how this isnt common sense.

  13.8.2009 19:43 #3

• Mysttic

  Because people are starting to save their $ because of this recession which has done anything but start recovering. People felt the entertainment industry, especially video games would not be impacted but as of last month they are admitting everything but. Layoffs are happening to hardware/software sectors, not to mention all the other industries that have already been impacted. Majority of families that were living off two incomes are now living off of one or even half of one in some instances. What can you spend, when there is little room to survive?
  
  Eventually the recession will over turn and things will get better, people will not be afraid to spend more. But as of now, this article is right; it's too little too late to cut pricing down if they want it to make a major impact on the gaming industry this year. They should have made these cut backs in the spring, instead of waiting for xmas as an excuse. I expect the majority of video game sales be bought used by consumers this year, to save the extra dollar.

  14.8.2009 02:22 #4

• borhan9

  This will be a good thing seeing how xmas is around the corner and the overall holiday season so it will be benifical for all parties around then other than that Companies will just have to wait it out.

  15.8.2009 21:52 #5