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Survey says new consumers would buy consoles if the prices were reduced

Tuesday, 23rd November 2010 18:23 GMT By Stephany Nunneley

ps360

Cowan & Company has conducted a survey which suggests core videogames are still the best market investment and more new consumers could be tempted to purchase consoles if the prices were reduced.

According to the survey, as reported by GI.biz, less than five percent of consumers bought fewer games due to time spent playing social or free-to-play games online, despite the rise in usage in the sector. What this suggests, is core games are still a wise investment from both stock market players and publishers.

The report also concluded interest in motion controllers from non-owners of current consoles was “tepid” and in order to gain new customers, a price reduction of $30 per hardware offering was enough to grab US consumer attention.

“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,” said the report. “We view continued stubbornly high hardware price points as one of the key factors dragging down software sales.”

The report also found that 76 percent of online console gamers had purchased DLC within the past year. with 46 percent of consumers spending over $20 on digital offerings.

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21 Comments

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  1. Panou

    “If I kill you, you’ll be dead”

    Thanks a lot, Captain Obvious!!

    #1 3 years ago
  2. Razor

    Well it might be obvious, but you have to get the timing right.

    I think Sony are missing a huge trick by not reducing the price of the PS3 to £199 in the UK. At the moment, MS seem happy enough at their price, and if Sony were to match them in the UK, I doubt they’d move.

    But the longer Sony leave it, MS will just drop their price of the 360 and maintain the edge.

    #2 3 years ago
  3. cookiejar

    A £199 PS3 is a must now I reckon. They’re doing alright since the slim, but that price cut would properly see off the 360 if thats what they wanted.

    #3 3 years ago
  4. NoxNoctisUmbra

    PS3m2 (Square) (slim 2) is coming.

    199USD or 199 British.

    BTW you did not hear it from me.

    #4 3 years ago
  5. Mike

    Survey says people would buy more stuff if it was cheaper.

    errrr

    #5 3 years ago
  6. Razor

    But again Mike, you need to get the timing right to really take advantage of the price cut. I think Sony are leaving it too late in the UK.

    #6 3 years ago
  7. Gekidami

    I bet both the PS3 and 360 will get price drops announced at E3. It’s about time honestly, especially for the PS3.

    #7 3 years ago
  8. Rah_Xephon

    Cheap(er) things sell more. Ask Nintendo.

    #8 3 years ago
  9. anuekr

    the skies are blue and bobby kotick is a rich mother-f#cker that his only freinds(s) are our wallets so-freakin-what?

    #9 3 years ago
  10. MegaGeek1

    Smeh, Im happy with my bulletproof PS3 I bought for $499 two years ago.

    #10 3 years ago
  11. MushroomStamp

    I’ve had to replace 3 360′s, 2 under warranty. I have also had to replace 2 PS3′s, luckily both were under warranty cuz I woudln’t have paid again to replace. Luckily 360 is cheaper to replace than a ps3.

    #11 3 years ago
  12. OlderGamer

    I agree with Razor if Sony wear to drop the PS3 price tag for THIS holiday season, they would move a butt load of systems.

    I have sick at the continued strategy of placing more precieved value in the retail box(headsets, points cards, extra controler, old games, increased HDD space, etc) instead of actualy lowering the damn price. If someone can’t afford your 300usd system, they can’t afford your 300usd system with more stuff packed inside any easier.

    Its a shame.

    Anyway, I expect to see a significant price war next spring/early summer. I am expecting a 100usd Wii, and a 130-150usd tag on both PS3 and XB360. Without a price drop there will be little growth. With what is made on DLC/periphials/games/movies/licensing they should be just about giving this systems away at this point.

    #12 3 years ago
  13. Erthazus

    Actually they don’t need to drop the price. Even with the current price point they sell TONS of them after Slim factor.

    the reason is simple: Great games and Blu Ray.

    worldwide PS3 outsells 360. PS3 is just behind 2.9 million already.

    #13 3 years ago
  14. OlderGamer

    World Wide – Japan = XB360 ftw.

    I don’t live in Japan, and neither do you.

    A price drop would help all three systems, imo. But I think a price drop would be most helpful and have the biggest impact on sales for Sony.

    #14 3 years ago
  15. Erthazus

    In the EEMA PS3 and Xbox 360 are neck to neck actually. PS3 sells very well in Europe.
    PS3 need to be pushed in the US only.

    and in Japan PS3 sold ONLY by 6 million, while Xbox 360 is almost 1.5 million. Not a big of advantage really compared to Japans Wii that sold for 10 million units already.

    #15 3 years ago
  16. OlderGamer

    You don’t feel that the PS3 would see a surge in sales across the two major western markets if the price was reduced?

    I do.

    But as I said, and you pointed out Japan is PS3 heavy. They won’t so much as look at a precieved NA/western made system so that kind of makes them mute. But over all when considering the whole of it…xb360 across all three markets outsells PS3(and again go look at software, even worse).

    And even worse, Nintendo beats both with either Gameboys or Wiis.

    But none of that is my point. I am not flag waving, you know me better then that. My point is that a price drop would spure sales. My opinion was the PS3 could use that strategy the most givin its current global market positioning(ie last place). If you add in both MS and Sony going after the casual crowd with Kinect and Move, I think they both could stand a price drop. My wife parents aren’t going to spend 300usd on a PS3 and another 200usd on Move wands/cams just to play bochi ball. Same would go for Kinect.

    #16 3 years ago
  17. Callum

    Price drop a GT5 bundle and I am SOLD.

    #17 3 years ago
  18. Erthazus

    Of course i see that price reduce will help PS3 sales…

    but Sony can’t afford it when they have expensive Blu Ray player inside with Cell Processor and just that complex hardware.

    Thats the only reason and they want to make at least a little bit of money out of the hardware because they lost a LOT in the past with just a hardware.

    #18 3 years ago
  19. manamana

    They can and they will. But, as always with Sony, their timing will be awkward. Like next summer or holiday season Q4 2011. Most people buy the consoles for gaming, neither for the techspecs nor for the medium its played on(blu-ray movies are actually pretty high priced). Blu-Ray is for adults who can or are willing to afford the higher price tag. Ask younger people and they simply are happy with streamed or downloadable movies.

    So whats under the tree? 199 or 299 (€/$/£)? Simple as that.

    #19 3 years ago
  20. OlderGamer

    With netflix, I don’t buy too many movies anymore. And even tho we do rent discs via the mail, we don’t pay the extra for them to give us blurays. We are happy with SD movies. And to be clear, SD discs get upscaled very nicly on xb360/ps3/and most dvd players, they look great to us(wife and I). Plus I only have one PS3, but I have five rooms with TVs ans DVD players that we could watch movies in(two kids Bedrooms, my bedroom, livingroom and den).

    Untill ALL movies come with BluRay and Standard Def copies at no increase in their prices, the whole BR factor is still going have very little in impact.

    #20 3 years ago
  21. Crysis

    How about, instead of dropping the price, they include GT5 free for every new console :D

    #21 3 years ago