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Prices drop on XBOX in Europa


zanza

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Just what I´ve been waitin for! Does MS really think Europeans are stupid enough to buy an Xbox which costs 40 % less in the States? I´m not, anyway.

 

It´s of course a violation against the laws of competition to sell something below it´s production cost. But then again, will somebody care?

 

I will buy an Xbox on the 26 th.

 

cheers

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quote:

Originally posted by Bez:

Just what I´ve been waitin for! Does MS really think Europeans are stupid enough to buy an Xbox which costs 40 % less in the States? I´m not, anyway.

 

It´s of course a violation against the laws of competition to sell something below it´s production cost. But then again, will somebody care?

 

I will buy an Xbox on the 26 th.

 

cheers

 

There is also the factor of "dumping", but the only territory they may be guilty of that in is Australia, where it will be selling for quite a bit less than everywhere else.

 

But.... borderline criminal competition activity is right out of the Microsoft playbook.

 

In this case though... the consumer is definitely favoured...

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quote:

Originally posted by Bez:

It´s of course a violation against the laws of competition to sell something below it´s production cost. But then again, will somebody care?

 

I will buy an Xbox on the 26 th.


 

To answer your first question, yes, selling something below it's production cost is called "dumping" and somebody will care. Remember when the PS first came out and Sega was all up in arms about Sony dumping the PS into the market? Whether or not anything came out of it is anyone's guess, but the industry is aware of it.

 

Congratulations on buying an XBOX on April 26!! MICROSOFT earns yet another loyal user!!!!

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This isn't just a well-timed ploy by Microsoft (gamecube is released here 3rd May) - I've been catching up with this on BBC's finance news- Microsoft are cutting the price because they have to. The city are more than a little worried about the risks MS are taking, Xbox is turning into a bit of a money-pit for them outside US. Of course, this is hardly likely to cripple MS, just as DC didnt really harm Sega, but if they don't get the sales in the next couple of months...who knows.

I'm interested to see how this all pans out. With Xbox at about the same price as PS2, but going for exactly the same market, will it be enough to tempt the average gamer away from Sony? And all this just as PS2 is really getting into high gear.

Not sure how it'll affect GC sales either, there is a small market share overlap there, though Nintendo do totally own the younger market and theres no danger of that changing anytime soon. Not only that, but there are a hell of a lot of GBAs out there, and that connectivity is a big USP. Just as the PS2's backwards compatibility is going to count for a lot. Xbox is the only real leap of faith in this round, though it's now cut free of it's PC moorings by being significantly cheaper than any 'family' PC.

As far as Europe is concerned, I think the console war started today.

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Microsoft's pricing policy is pretty much in line with all currentt console companies - both Sony and Nintendo sell consoles at a loss - its been an established practice for YEARS...

 

They make money of the games, not the hardware, every game produced and sold on a Sony/Nintendo/MS console pays them manufacturing (which they turn a profit on) and a hefty licence fee per unit too

 

 

sTeVE

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I agree! the C-64 is better than ZX, but someone else might disagree..

 

One exceptionally crappy thing about MS is their user licenses. Let´s say I got one computer at home with WIN98, and another portable computer, I need pay for TWO separate licenses..no news, but it still buggers me big time.

 

But really, gameprices don´t differ that much between Nintendo,Sony and MS for that matter. Or do they?

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quote:

Originally posted by Jet Boot Jack:

Microsoft's pricing policy is pretty much in line with all currentt console companies - both Sony and Nintendo sell consoles at a loss - its been an established practice for YEARS...

 

Not true -- Nintendo has not sold any hardware at a loss since the original NES. They really trumpted that fact about both the N64 and the GameCube when they released. Both of those systems were released cheaper than the nearest competition at the time.

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IMHO -

 

I dont think MS will be really bothered about the fact they are losing money on Xbox.

 

You have to look at what MS long term goal for the Xbox is - not just a games machine with a poor version of Media player stuck on it thats for sure.

 

Its my belief that wth Xbox Microsoft are making the first tentative steps towards getting a little(well....big ) black box in every household in the industrialised world that sits on top of your telly and does absolutely everything -

 

Digital telly

All audio visual

Games(will just be a nice minor feature of the whole package)

Broadband web(probably T3 or even faster by then)

Turns your lights on an off

Shuts your curtains

Runs your bath and then wakes you up when its full

Orders your food

wipes your arse

 

...you get the picture.

 

basically the xbox will become more of a "PC with an easy interface" that will satisfy the technological needs of people who are intimidated by the PC as we know it today.

 

It will probably be a good 5 or 6 (console) generations (30 years or so) before it really starts to mature into it but I'm sure that when we are all retired we will have that little black box sat ontop of the telly where the cable box used to be - The name on it will be Microsoft and it will be a direct descendant/development of the Xbox.

 

Thats my 2 cents.

 

Ive played a few of the games and i must say im a bit dissapointed - Halo just looks like a poor attempt to copy Half-Life to me. And Project Gotham Racing doesnt really look any better than MSR on the DC.

 

Adam(a MS fan but dissapointed with the Xbox)

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I agree - that's their plan - I think the next big corporate goal of this decade is to produce the indispensable (to use Apples term) Digital Hub. Am I the only one in the world who likes different tools for different jobs?

If this horrible corporate dream takes off, i can see us having to register practically everything we buy online! no thanks. I like the luxury of being able to defrost the fridge without resetting my TV presets.

Call me old fashioned The Xbox (and PS2) goal still smells a bit of CDi. I don't want my internet through my TV.

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HAHA! Way to go Zanza! I´ve already ordered my Xbox and I´m gonna take advantage of getting those two extra games + gamepad. I ordered it on the 21 st for 290 euro so it won´t be any problems to be a loyal MS user

/Bez

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I'll buy an Xbox for the same price that I bought my Saturn - £15 It's probably gonna be a good retro machine (thinking a few years ahead here) but the general theme of the games available (and in development) just isn't my cup of tea. Its gonna be one of those consoles I buy after the fact, for the 3 or 4 great games that didn't appear on other systems (did the same with the N64)

 

But heck yeah, for those of you who like the Xbox, paying the full price now and getting those 2 games and controller is a pretty decent idea.

 

Wow, it's really easy to be nice about the Xbox in the absence of Mr M

 

[ 04-21-2002: Message edited by: liveinabin ]

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Dan,

 

I don't want to escalate any "argument", I have no hard figures to point to, but Nintendo sold the SNES & N64 at a loss until sales of maufacturing etc made the hardware cheaper to produce...

 

If the GC is not being sold slightly undercost I would be AMAZED - certainly at launch it cost more than $199 to actually make...

 

sTeVE

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quote:

Originally posted by liveinabin:

Who knows, maybe they'll get into a spiralling price war and then we can buy all 3 systems

 

 

Good guess!

 

Nintendo Australia just reduced the price of the GC to $329 for launch! (Thats $177 US) Now there's rumours this morning that Sony will drop the price too!

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quote:

Originally posted by Jet Boot Jack:

I don't want to escalate any "argument", I have no hard figures to point to, but Nintendo sold the SNES & N64 at a loss until sales of maufacturing etc made the hardware cheaper to produce...

 

If the GC is not being sold slightly undercost I would be AMAZED - certainly at launch it cost more than $199 to actually make...

 

I don't think we are arguing, we are just having a friendly conversation. Hope I didn't sound confrontational...

 

Anyway, I have some magazines around here somewhere where Nintendo talked about how proud they were to bring out the N64 for $199, and they were asked if they were going to be taking a huge hit in hardware losses, and they said that they actually were making money on it.

 

Recently, they have stated that they are indeed making money on the GameCube hardware. If I get some time, I'll dig up the quotes

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