There's one thing I do not understand about the gaming industry and not because I don't know much about it I do but it just keeps baffling me. I'm talking about of course price cuts. When a company like Sony, Microsoft or Nintendo decide to announce price cuts consoles move faster than before and a year later a new price cut is announced and therefore more consoles are selling. I know people want to save money but, the same people are missing out on the platform for an entire year to save $50. So are price cuts really worth it?
In 2005, Microsoft released its Xbox 360 console worldwide with a price point of $299 and $399. Throughout that time we have seen many different SKU's with new chips that make the console run cooler and diminish the chances of the Red Ring of Death which affected a good 33% of heavy users and I'm sure the number could increase if everyone used their systems heavily. It's 2011 and there's 2 new SKU's for the Xbox 360. The first SKU sells for $199 and the second one sells for $299. So in 6 years the console dropped $100 and people are purchasing the console. Sure Microsoft added Wi-Fi and a new design but if you look at the old design the least it sold for was $150 and that was the arcade version. We still had the Elite and the premiums which still sold for $299 and above and even now we have Limited Editions console's selling for $399.
The Playstation 3 launched in 2006 with a price point of $500 and $600 which I still think it's the better deal because it's backwards compatible with 100% of the PS2 and PSone library. The PS3 received a price cut of about $500 and $400 and now we have the PS3 slim which retails for $299 and $349 minus the backwards compatibility. In 5 years we have seen the console's price drop almost half of what it normally launched with. Besides the design, newer chips and Hard Drive nothing much has changed. It's still the same console that launched back in 2006.
The Wii also launched in 2006 is the most disappointing console of all 3 because up to date it has only received a $50 price cut from $249 to $199. It's been 6 years and there has almost been no change. I'm sure the Wii only costs Nintendo $50 or less to make. The Wii should have been $150, 3 years ago.
My point is that it takes years for consoles to drop price and if you're waiting for a price cut for a console, you might as well purchase and enjoy your console as early as possible. The only time I gave in to a price cut is when I purchased the Xbox 360 Arcade from target when they had it on sale for $129 with a $30 gift card. If you would have purchased a PS3 or 360 last year you could have enjoyed either console for 1 year. Yes a $50 price cut is great but that's only the price of a game.
If you already put it in your mind, if it's already stuck in there that you are going to get a console then you might as well get it because it's going to be a long time before there is a price cut. If you don't have the cash save up and then get it. If you do not need it or want a console but decide to buy one down the line then sure why not. But if you ask me if you are certain that you want a console, work out your budget and get it. It's better than getting it a year for now only to get a $50 discount.
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