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EA Games Dropping Some Prices

Another sign that the delays in shipping the newest game consoles is having an effect on those that manufacture games, EA Games has dropped prices on some of its games for the old school Xbox to a price of $39. From a Reuter’s article, “$39 is resonating with consumers given the transition,” EA spokesman Jeff Brown said. “There are indications that $39 is a solid and sustainable price point.” It strikes me as somewhat odd to see them lowering thier price just to retain volume. What that tells me is that they try to keep the price as high as possible to maximize sales, but is most likely not grounded in any actual cost to the company. The whole scheme of taking a loss on the console in order to make money on the games is an interesting phenomenon, brought about by fierce competition, but the cash flow can come to an end in a hurry when your system is being obsoleted.

The console manufacturers have hurt themselves with a lack of a realistic launch date. Within six months of a new console coming out, people are not interested in buying a new game. They are saving and getting ready for a new system. The longer that they delay the launch, the longer they are hurting the game manufacturers. Not that they have any real sway, but you would think the manufacturers would be pressing these companies to get the systems out ASAP so that they all could begin seeing a return on their investment.

Posted by Jeff 


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