Why did XBOX drive down to $199???

[CALzinger]

This thread was probably posted before, but i dont think i caught the news.

What was the exact reason that xbox had dropped down to $199?
Was it because PS2 was going to drop down its price too?

[faceoff508]

Yeah, I think so!! The PS2 lowerd the price about a week before the Xbox lowered its price!! So Microsoft decided to copy Ps2!

[MixMasta]

the original xbox price drop was supposed to be may 21st i think, but in a surprise move sony lowered their price a week before so m$ immeadiatly lowered there price. then this past week gamecube lowered their price

[E-Xbox]

yea it was partially cuz ps2 dropped their price...
and also to appeal to more customers with a lower price range...
so now.... the xbox is much more affordable for the N.A. customers......

peace

[Indigo]

MixMasta is right on this one. The date was May 23rd, in the middle of E3. Microsoft was going to surprise eveyone with a price drop, but accidentley, Walmart released an add stating the price drop (no joke). Sony figured out Microsoft's plans to lower the price, so, abruptly, they lowered their price before Microsoft. The next day, to rival the PS2, Xbox followed with a price drop.

[Afro Aura]

the XBOX price drop was to get into Sony PS2 market as they are looking for the older clients so to compete they had to bring the price down

[ZroFoE]

PS2 didn't even lower their price. It's still 299, GC and XBOX are 199.

[E-Xbox]

Originally posted by ZroFoE
PS2 didn't even lower their price. It's still 299, GC and XBOX are 199.

wtf are u smoking?!?!?!?
ps2 dropped its price b4 xbox dropped its.....

peace....

[PROUDXBOXOWNER]

Originally posted by ZroFoE
PS2 didn't even lower their price. It's still 299, GC and XBOX are 199.

what part of lousiana do u live in is it underground???

[ZroFoE]

wtf are u smoking?!?!?!?
ps2 dropped its price b4 xbox dropped its.....

peace....

Black & Miles....Puff, Puff, Pass

what part of lousiana do u live in is it underground???

What part of New Jersey do you live in? Is it in your a$$?
To think that so many people could be so immature about a price drop.

[Kortiz]

actually i thought Xbox was supposed to Lower their prices first, and they tried to keep it secret, but word got out and PS2 surprised the world by lowering their price first and xbox retaliated by lowering before they said they were. shortly after GCN decided to lower their price too.

I think Sony reacted to Xbox, and GC reacted to Xbox and Sony.

[Crazy Joe]

Originally posted by ChickenSHHHH
actually i thought Xbox was supposed to Lower their prices first, and they tried to keep it secret, but word got out and PS2 surprised the world by lowering their price first and xbox retaliated by lowering before they said they were. shortly after GCN decided to lower their price too.

I think Sony reacted to Xbox, and GC reacted to Xbox and Sony.

that is exactly what happened from what i understand. We were hearing tons of rumors about the Xbox price drop before PS2 dropped their price.

[BCan]

From my understanding of marketing and product life, this is more of a rational way of explaining the price drop.

All products attract Early Innovators, those that will have something brand new no matter what it costs. This is where the product is released at a price, where the company, ie Microsoft can recoup some of the losses early on.

After this "honeymoon" period is over, then the price will drop to attract the more general market into buying the product. Many seem to forget that the PS2 dropped its price a long time ago, but it had no real competition at the time, so could do it at their leisure.
Microsoft, trying to come into a market with an obvious leader, tried to steal the march on Sony by dropping the price early to the pre-determined price that the XBOX would end up at sooner or later. It was Sony who reacted to MS who was preparing to drop the price...