Post by Segaman on Jul 28, 2003 12:48:59 GMT -5
Publishers Want Price Cuts for Consoles
Video game publishers are yearning for cheaper consoles as recent data shows sales of the GameCube, PlayStation 2 and Xbox down by more than a third compared with last year, a trend that if sustained could make Christmas bleak for hardware and software makers.
Activision said a price cut is needed, while THQ anticipates this will happen in fall in order for the console manufacturers to achieve their forecasted hardware sales. Electronic Arts, on the other hand, is timid with statements pertaining to console prices. EA's Chief Financial Officer Warren Jenson told Reuters it is not clear yet if console makers are considering a fall price cut or if they instead will choose a strategy, as Nintendo has done, of maintaining the hardware price and bundling in games for free. "So far they have not given us a clear indication," said Jenson.
Surprisingly, price cuts from earlier this year did not lead to desired the sales boom that was caused by the cut of last year. Even Microsoft conceded last week that the $20 cut on the Xbox had had little effect.
Retailers are speculating that a price drop is in the works, and will occur in the fourth quarter. Financial analysts seem to agree, thinking a cut by September to $149 for the Xbox and PS2 and $99 for Game Cube price is increasingly likely.
Source:GameSpy
