Why are Xbox 360s and Play Station 3s so freaking expensive?

Question

Are these toys for regular kids or for hot damn royalties..? damn them video game industry for robbing us like that.

no freaking way do most people have them, only spoiled rich kids do.

Answer 1

Supply and demand, my friend. How many people were waiting in lines around corners for these things when they came out? I know more people with them I think than I do without them. As long as people are buying what they are selling, the prices will remain the same.

Answer 2

Both products are in the "market introduction" phase of its product cycle. They are marketing their consoles to the early adopters, the consumers who want the consoles first (no matter what games are on it). The consoles will get cheaper as Sony and Microsoft manufacture more of them (greater economies of scale), but when and how much is the price reduction is unknown.

Also, both companies want consumers to believe their new consoles are "entertainment centers", not just game consoles. I guess this is supposed to add value to the service = price premium.

I think the bigger complaint is the games are $10 to $20 more expensive than PS2 and XBox games. I know the games have more graphics and are more CPU intensive, but that's quite a price jump for consumers. Of course, the peripherals like the game controllers are more expensive and you have to buy an adopter to use your old PS2 memory cards!

I think Microsoft and Sony will lower prices sooner than when they reduced the XBox and PS2. You have the Nintendo Wii that is cheaper with games that are $10 less than PS3 and XBox 360 games. It has been well received so that will eat market share from Microsoft and Sony. I imagine the XBox 360's price will be reduced by at least $50 this Christmas season. I heard Sony will thinking about lowering the PS3's price but they have to figure out their supply problems first.

If you play video games for leisure (as opposed to a hard core gamer), just wait until Christmas or later to buy a PS3 or XBox 360. The PS2 will continue to release new games until the end of this year (Madden 08, NBA 2K8, etc), though there is only one more big non-sports game release for the PS2: God of War 2 in March. After that, Sony's efforts will be targeted to the PS3.

Basically after March, all of PS2's games will be ports (games available on every console). No more exclusive games for the PS2 anymore.

Answer 3

Market Skimming. It is a marketing method used by companies to get the greatest amount of profit from their products. When a new product is released, they attach an above average price because serious gamers will pay it. Once they sold a unit to those willing to pay, they bring it down to the affordable price of the next class of people. And so on.

Now with regards to the PS3, production costs actually are over their sales price. Which means they are actually losing money for each PS3 that is sold. There reasoning behind this is market share. They will be making money off the games sold to the greater number of PS3's in the market.

Answer 4

What country are you in? If you are in America then it isn't rich kids that have them. Although they aren't really designed for kids anymore. They are now more designed for 20+ who make their own money and can save up and get one. I got a 360 and have little interest in a PS3. I think they are too expensive for me. After all Playstation lost all of it's exclusives that interest me. As to them "robbing" us like that, actually they lose money on the systems. They make their money back through games.

Answer 5

Well they are So freaking expensive because They have suck great graphics and so many different games for them I mean most of their games look so realistic when it shows the faces of the people in the games and basically everything else in the games as well to.

Answer 6

They are basically computers. The systems actually cost a great deal to develop and make. Most of the time they actually lose money with every console sold. They make their money in games. That's why a game costs $60.

Answer 7

I totally agree with you. It's pretty insane. But I disagree with the comment that they will eventually get cheaper (atleast with the degree with which it will happen). PS2s are still about $130. Sure, alot less than the original price, but for as long as it's been out, the comparative price drop that the PSX had was bigger. $130 isn't so cheap that I'd feel I could easily replace my PS2 if something crapped out on it. Same with controllers. Still $30 --not THAT much, but I don't work (and even if I did, it's for conviencence and not necessity....), and I've already had 1 original controller crap out and now the other one is starting to be pretty glitchy. Today technology is all about the company making you think you need whats new and "better" and getting all that money from you.

Answer 8

I agree with Vin. Supply and Demand. Microsoft and Sony knows serious gamers will Pay that price, so as long as their are serious gamers out there they will keep the price high until its time to decrease it for the next set of buyers. Thats how they make money dude. Wouldn't you do it if you owned Microsoft or Sony?? I would. . . .

Answer 9

It's new technology so that's why they're so expensive. Remember how much the first VCR costs when it first came out or how much the DVD player costs when it first came out? Pretty expensive.

But like all technology, it gets cheaper and cheaper with time, and so the PS3 and 360 will get cheaper with time.

Answer 10

supply and demand, if they cost the same as the ps2 and xbox they would be even more chaos over them because they can afford to get it right away, and we already had problems with them running out around christmas time, if they were cheaper it would be much worse