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Tuesday, January 09, 2007

Analyst: $60 game pricing not sustainable?

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It's easier for companies to raise prices in an effort to increase profits than decrease inefficiencies. So as next-gen development costs increase (as most publishers argue), Microsoft and Sony lovingly pass on said increase to the consumer in the form of a $10 premium for (most) new titles for Xbox 360 and PS3. But one analyst believes the $60 MSRP may not be sustainable as preemptive 360 pric e reductions -- not to mention varying prices for select 360 games -- perhaps indicate.

GameDaily tells the story: "We believe the inability to sustain $60 into April suggests consumer appetite for premium priced titles is questionable. Note the reported reductions include Xbox 360 SKUs of the bellwether Madden game, as well as Tiger Woods & FIFA, the latter two being released this past quarter (all three cut from $60 to $50). Recall that EA also cut Xbox 360 prices in May-06 despite selling into price insensitive early adopters." Not keen on paying $60 for games then? Don't complain to us; hoard those greenbacks from publishers for the ultimate snub, so long as you can.
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