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Tällainen tuli postiini, strategiakonsultti Forresteria seurataan silmä kovana pamppujen toimistoissa.
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Europe's Game Console Price War Starts Early
Nintendo followed up Microsoft's Xbox price cut by slashing 50 off the yet-to-be-launched GameCube. It's great for consumers, but manufacturers now need to focus on quality software at a better price point to recoup their hardware losses.
by Paul Jackson with Jaap Favier, Laetitia Grammatico from Forrester Research 22.4.2002
Historically, manufacturers drop the price of game consoles a year after initial launch as they aim for wider, mass-market ownership. Not anymore it seems -- Microsoft significantly cut the price of the Xbox after just six weeks in Europe, and Nintendo has announced a reduced GameCube price even prior to the May 3 launch. How will this affect the multibillion euro games market?
Nintendo's rapid response saves its USP. It must hurt to cut the price of an unlaunched product, especially when retailers were already complaining about the GameCube's low 249 price. But Nintendo had to act to maintain its "dedicated games machine at a lower cost" positioning.
Microsoft's price cut is essential for Xbox success. Microsoft is now showing the same resolve in cracking the game console market as it did when it embraced the Net. The Xbox was too expensive; now, with better software titles and DVD playback, the Microsoft console represents a very strong gaming proposition.
Sony will respond with a PS2 price cut within a month at most. The PS2 is the most established next-generation console, with a good catalog of games. But at the same price point as the Xbox, the PS2 now looks tame -- Sony has to cut 50 off its console price in response to Microsoft's and Nintendo's moves.
Larger hardware losses endanger long-term viability. Manufacturers cannot sustain even bigger per unit losses on their consoles without higher games sales -- software is where they recoup their money. Will cheaper hardware mean more software sales per console? No; only better, cheaper games will do this. Can future online gaming service revenue make up the difference? Again, no.
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Europe's Game Console Price War Starts Early
Nintendo followed up Microsoft's Xbox price cut by slashing 50 off the yet-to-be-launched GameCube. It's great for consumers, but manufacturers now need to focus on quality software at a better price point to recoup their hardware losses.
by Paul Jackson with Jaap Favier, Laetitia Grammatico from Forrester Research 22.4.2002
Historically, manufacturers drop the price of game consoles a year after initial launch as they aim for wider, mass-market ownership. Not anymore it seems -- Microsoft significantly cut the price of the Xbox after just six weeks in Europe, and Nintendo has announced a reduced GameCube price even prior to the May 3 launch. How will this affect the multibillion euro games market?
Nintendo's rapid response saves its USP. It must hurt to cut the price of an unlaunched product, especially when retailers were already complaining about the GameCube's low 249 price. But Nintendo had to act to maintain its "dedicated games machine at a lower cost" positioning.
Microsoft's price cut is essential for Xbox success. Microsoft is now showing the same resolve in cracking the game console market as it did when it embraced the Net. The Xbox was too expensive; now, with better software titles and DVD playback, the Microsoft console represents a very strong gaming proposition.
Sony will respond with a PS2 price cut within a month at most. The PS2 is the most established next-generation console, with a good catalog of games. But at the same price point as the Xbox, the PS2 now looks tame -- Sony has to cut 50 off its console price in response to Microsoft's and Nintendo's moves.
Larger hardware losses endanger long-term viability. Manufacturers cannot sustain even bigger per unit losses on their consoles without higher games sales -- software is where they recoup their money. Will cheaper hardware mean more software sales per console? No; only better, cheaper games will do this. Can future online gaming service revenue make up the difference? Again, no.
