Cowen & Company analyst Doug Creutz, in the firm's 2010 Video Game Survey report, suggests that the Big 3, Microsoft, Sony, and Nintendo need to lower the prices of their respective consoles. Lowering prices of the Xbox 360, PlayStation 3 and Wii will result in more people wanting to buy them which increasing hardware and game sales.
"None of the hardware manufacturers have reduced their hardware prices since the last holiday. However, our survey results indicate that prospective hardware buyers have reduced the price that they are willing to pay for hardware."
Everyone wants more for less and that goes double for their investments into their gaming consoles. Especially when trying to give consoles as gifts to others during the holiday season, the price of a console and its perceived value is paramount. A variety of factors contribute to gamers willing to pay less for consoles, including their individual economic situations and their desire, or need, for the console. With the next generation of consoles a long ways off, prices will need to be adjusted to attract and sustain success in the gaming market.
"We believe that the hardware manufacturers have left unit sales on the table by not reducing price points from $199 to $179 and $299 to $249 for the applicable consoles, and that doing so would have driven a more significant boost to hardware sales than the release (for Microsoft and Sony) of new motion-sensing peripherals. Although our survey results show strong demand for the two new motion sensing peripherals among current Xbox 360 and PS3 owners, demand among non-owners and prospective buyers appears tepid."
Cowen & Company's survey report questions the impact of Kinect for Xbox 360 and the PlayStation Move. The demand for the new motion peripherals has been called into question before. I agree with the report about price deductions having more impact than either new motion control peripheral. All gamers aren't interested in Kinect or Move but are interested in next generation gaming. Offering gamers the opportunity to purchase another control scheme along with the console isn't as enticing to new customers as lowering the cost of the base console.
Do you think it's time for another price reduction on this generation of consoles, Ranters?