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New PS2 $100 price cut. X-Box price cut coming.
[link|http://www.theinquirer.net/14050201.htm|Here], at The Inquirer.

Cheers,
Scott.
New Whoopie! When I get a new job I might buy one!
After all I have to celebrate something? $100USD off the PSX2 or XBox, why that is almost affordable!

I am free now, to choose my own destiny.
New This is gunna hurt Microsoft
Especially considering that at $299 Microsoft is already selling the XBOX at a loss.

From [link|http://www.actsofgord.com/index.html|Acts of Gord](interesting stuff from a video game store owner) [link|http://www.actsofgord.com/Proclamations/chapter02.html|The book of Proclamations, Chapter 2] has some interesting insight that yeilds Sony making $120 profit per PS2 when it was being sold at $299.
Then we look at Sony's stock report for Oct-Dec 2000, and there is an interesting little blurb. It said that had Sony been able to meet demand with another 1 million PS2 units, they would have pocketed $175 million in profits. $175 million divided by one million consoles equals $175 per console profit.

Now, that is a bit high. This assumed that average consumer continue to buy four games per console (so around $24 in royalties), and 2 accessories (about $30 in profit total). That reduces the $175 to about $120. Sony is making $120 profit per system.
So even at $199 Sony's making profit(and I'm sure they've dropped their costs by now), while a $199 price means an even larger loss for Microsoft.

Darrell Spice, Jr.

[link|http://home.houston.rr.com/spiceware/|SpiceWare] - We don't do Windows, it's too much of a chore

New Will this all end up like 20 years ago?
(but just in higher resolution? :) )

ie: Is the big console meltdown just around the corner? And who gets to be Atari this time? (Hang on, I guess Sega already jumped the gun on that :) )

I'm willing to make a wild prediction that at least one of the consoles will be US$129 (or possibly even US$99) by Christmas. No, PSone and Dreamcast don't count.

Personally I'm in no rush to get a new console as I haven't played out all my Dreamcast games yet. Actually, I haven't played out all my Atari 2600 games yet (StarMaster is a bitch on the 3rd difficulty level!) but that's beside the point.

I reckon one big thing in the PS2's favour is that many of the games have been released as Platinum - ie: cheaper. I'm guessing this is the case the world over.
On and on and on and on,
and on and on and on goes John.
New I believe home computers caused the crash
[link|http://videogames.org/html/|the History of Home Video Games] seems to agree. The entry for 1984 is titled [link|http://videogames.org/html/crash.html|CRASH!!!]
In 1984, consumers just stopped buying video game consoles. I'm not talking about a slow thing, it seemingly happened overnight. Suddenly people started saying, "Why should I spend $150 for videogame-x when I can spend $200 on computer-y, and my kids could learn on it! I could do home budgeting, it will be heaven."

In 1983, I got my first home computer--a TI 99/4a. My parents were THRILLED because they could buy a cheap $4.95 magazine per month and I'd have 4 or 5 new programs to play with. Granted, I'd have to type it in, but it would save money. My parents weren't the only ones with this idea.
I also believe a major factor in the currect "drought" of comp-sci students on college campuses is related to computers no longer coming "ready to program" out of the box. On Window's you'll spend an addition $100 or more for something like Visual Basic. I strongly suspect that we'll see an influx in the comp-sci courses as Linux, with it's full complement of included programming options, becomes more prevelent. I believe that's major incentive to get Linux into more schools, as it will help "boot strap" the next generation of programmers.

Darrell Spice, Jr.

[link|http://home.houston.rr.com/spiceware/|SpiceWare] - We don't do Windows, it's too much of a chore

New Nowadays the lines are being blurred
OK, only a wee bit, with Linux for Dreamcast and PS2.

But yeah, there doesn't seem to be anything on the horizon that would suddenly make people stop buying consoles.

I am very much one of that Ti994a clan - except I borrowed the magazines from the school library. :)
On and on and on and on,
and on and on and on goes John.
New The other factor
I put just as much weight on the other factor the page you lists gives. The raging storm of crap games hitting the market.

Not only the insane crud being put out by the non-console companies but the unplayable junk being put out by the console companies themselves.

Atari was really done in by it's managers, the company that owned Atari brought in the this old school clothing executive to run Atari and he tried to treat the enginers and game designers the same way he treated the ones at his old company. The good ones jumped ship and the quality of Atari games fell through the floor.

There is also a third factor that probably had an impact. Essentially the bubble had burst on all video games. Video games had been hot for a while, now they where not. Nothing directly to do with quality and everything to do with time. People had moved on to the next latest craze.

As for another console crash, I don't see one like 1984 happening again for a long time, if ever. Console games have become part of life for a lot of kids, I don't see them giving it up entirly. But it's a very faddish market and we will probably see individual companies come and go steadily.

The market could easily mutate beyond recognition though. There are any number of things that might break the strangle hold the console companies have over developing games for their consoles. Anything that broke this hold would fundamentally change the way the industry worked. Console companies would have to move to a system that pulled most of their money off the sale not off of liscensing and consoles would get far more games, but would also get far more bad ones.

Jay
New I agree; however,
they tried to fight back with the Coleco Adam, the Atari 2600 Graduator Keyboard, the Mattel Aquaris, etc.

The PSX2 has upgrades to become a computer, just plug in the Keyboard, Hard Drive, LCD monitor, and more.

I remember when the Vic-20 and Commodore 64 came out, and when Atari really launched the 8 Bit revolution with the 400 and 800. Also the TI 99/4A and the TRS-80 COCO series went under $200 with a tape drive. Eventually even Apple entered the home computer market with the //c and IBM with the PCjr.

But where are the home computers today? $899 and up iMac, $500 and up PC clone. I don't see any in the $200 range unless you count the Internet rebates and other rebates?

I am free now, to choose my own destiny.
New No? Really? :-)
I mean, everyone knows Sony not only have deeper pockets than Microsoft, but they've refused Microsoft's overtures at least once and probably more than once. I don't think Sony likes what Microsoft are doing in their own industry and would prefer they remain also-rans in Sony's industry.

Wade.

"All around me are nothing but fakes
Come with me on the biggest fake of all!"

New Not so sure about the pockets
Because of all that cash M$ has on hand. But I'd agree that Sony has more guts as it were, to not wuss out of the console wars. I'm guessing M$ won't cling on til the bitter end, they'll wuss out long before if it doesn't start making money.

Not too often I go yay for Sony (well, at least, the content arm) , but this is one of those times. :)
On and on and on and on,
and on and on and on goes John.
New X-Box price cut announced
At the [link|http://theregus.com/content/54/24949.html|Register]
K-mart. The company that beat Microsoft in customer satisfaction.
     PS2 $100 price cut. X-Box price cut coming. - (Another Scott) - (10)
         Whoopie! When I get a new job I might buy one! - (orion)
         This is gunna hurt Microsoft - (SpiceWare) - (7)
             Will this all end up like 20 years ago? - (Meerkat) - (4)
                 I believe home computers caused the crash - (SpiceWare) - (3)
                     Nowadays the lines are being blurred - (Meerkat)
                     The other factor - (JayMehaffey)
                     I agree; however, - (orion)
             No? Really? :-) - (static) - (1)
                 Not so sure about the pockets - (Meerkat)
         X-Box price cut announced - (Silverlock)

I am unable to summon the amount of snark that statement requires.
175 ms