XBOX 360 Life Cycle and Pricing

A recent discussion post for my Marketing course through WTC led my boyfriend and I to examine some aspects of the product life cycle and pricing of gaming consoles which aided in coming up with my following response to several comments about this topic. Please keep in mind that I am no expert, am not even a very experienced gamer but really enjoy my XBOX360 and love watching my boyfriend Andy play his favorite games. I don’t have exact quotes and am not 100 percent sure that I have gotton the information correct but it was interesting none the less. If you wish to comment, correct, or enlighten me further please follow the instructions provided to do so on this page.

The XBOX 360 is now 5 years old and the PS3 is about four. The introductory stage prices were approx. as follows:  PS3s 20 gig for $400, the 40 gig $500, and the 60 gig were sold for about $600, 360’s sold for around $400-20gig.

Now that they are in the growth stage of the product life cycle prices have dropped, software companies have learned how to program for the current consoles, and major game releases have become just as advertised as any new hollywood release and created massive revenue for anything video game related, it has never been a better time to be a gamer. Thus the continued high price of these systems will likely remain but will not impede the consumers decision to purchase.

Currently the XBOX 360 (4 gigabyte) is averaging $200 and the standard 250 gigabyte going for around $300. I suspect that with online multiplayer, instant downloadable content, and the many possibilities and applications that are continuously updated on the consoles the prices of the systems won’t decrease much more. The new (slim) models offer double or even triple the memory of their predecessors and many more features than previous versions combined with the decreased initial cost I feel the video game consoles have become the entertainment center for many households worldwide. Games are an entritely different topic.

With the anticipated release of the XBOX 720 in the late fourth quarter of 2012 and other platforms releasing not soon after, it will be interesting to see how fast the current generation of consoles becomes technology of the past. Although e-commerce bargins will aid in keeping the older versions in demand. Over time the current generation of consoles will eventually fall where all video game technology seems to end up, in a cardboard box in the attic, next to the great consoles of the past.

Lastly, gaming conesoles have come back to life after it has completed the product life cycle and prices can skyrocket. This has been the case for the origonal nintendo which bought new can fetch prices exceeding $700 and the games for it if bought new can run just as high or more. One may think that there isn’t a very large market for these outdated technologies however one doesn’t need to search for long to find more than a few major collectors willing to pay top dollar for those old dusty systems.

Thanks for posting on an interesting topic.


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