Post by Segaman on Sept 23, 2003 19:31:53 GMT -5
Retail partners Amazon.com and Toys "R" Us have taken the first step in heating up the upcoming fourth-quarter video game business.
The online retailers are now offering the jet black- and indigo-colored GameCube at a margin-busting price of $99.99
Senior analyst Billy Pidgeon of the Zelos Group commented on the price drop, saying, "If you're going to sell the GameCube for under $149, you're losing money... They're throwing their margin away, basically dumping them."
There is no indication that this price drop is the result of a renegotiation between the retailer and either the manufacturer or distributor.
As far as Sony and Microsoft are concerned, Pidgeon says Sony is likely to be unfazed by the price drop. However, Pidgeon says, "Microsoft should care. They could lose the number two position, which is very important for Microsoft [to maintain]."
Pidgeon added that the price drop will certainly have an impact on fourth-quarter retail sales but that competitive price drops across the board would be required to see substantial increases to anticipated Q4 sales.
Pidgeon said, "Fourth quarter is the perfect time to use a price cut. It would really energize the market if there were price cuts this quarter."
Nintendo of America has an analyst call scheduled for Wednesday morning, to be hosted by senior vice president of marketing and corporate communications George Harrison. Hardware pricing is likely to be among the topics he addresses.
By way of a spokesperson, Microsoft said it was "not aware Nintendo made a price drop announcement." Not wishing to show the company's cards, if it held any, the spokesperson added that Microsoft was "very comfortable with the recent holiday [bundle]."
The online retailers are now offering the jet black- and indigo-colored GameCube at a margin-busting price of $99.99
Senior analyst Billy Pidgeon of the Zelos Group commented on the price drop, saying, "If you're going to sell the GameCube for under $149, you're losing money... They're throwing their margin away, basically dumping them."
There is no indication that this price drop is the result of a renegotiation between the retailer and either the manufacturer or distributor.
As far as Sony and Microsoft are concerned, Pidgeon says Sony is likely to be unfazed by the price drop. However, Pidgeon says, "Microsoft should care. They could lose the number two position, which is very important for Microsoft [to maintain]."
Pidgeon added that the price drop will certainly have an impact on fourth-quarter retail sales but that competitive price drops across the board would be required to see substantial increases to anticipated Q4 sales.
Pidgeon said, "Fourth quarter is the perfect time to use a price cut. It would really energize the market if there were price cuts this quarter."
Nintendo of America has an analyst call scheduled for Wednesday morning, to be hosted by senior vice president of marketing and corporate communications George Harrison. Hardware pricing is likely to be among the topics he addresses.
By way of a spokesperson, Microsoft said it was "not aware Nintendo made a price drop announcement." Not wishing to show the company's cards, if it held any, the spokesperson added that Microsoft was "very comfortable with the recent holiday [bundle]."
