After research for a while, the next-gen console might not be cheap as we anticipated due to US-China Trade-War. The price has to be at least 600$ to make sense for corp

by stormbringervane. Posted on Aug 02, 2020    0    18


As long anticipated for price, everyone seems convinced on 500$ price. While it might be true for the Corp who announce price 2nd. It might be not true for who goes first

The problem with it is again Losses. These next console specially Xbox SX are very powerful, even at 500$ cost it is expected to make loss. The problem might not be so bad if not for the US-China Trade War. It impact negatively on almost every others countries ex: Japan who export affiliate product in china. Most recent consoles imported to US were 96% China's product

While 500$ surely make senses for many of you guys here, the problem lie in how much Tariffs-25% on gaming stuff- heavily impact the price. Not even for MS, remember they are selling millions console. Even each cost 1-2 more dollars to make already making huge losses. These console gonna result in a massive losses for 500$ is a reasonable take atm, so that is why 600$ is the legit price for Corp


Comments

Batmans_other_butler

They will be $500 max or they’ll be DOA.

Consoles are sold at a loss usually.

  stormbringervane

You seems not understanding that sold at acceptable loss and sold at massives loss are different thing

Consoles are sold at loss without heavy Tariffs in the past are not the same thing compare to now

Batmans_other_butler 2

How is it an unacceptable loss when your just some dude behind a screen assuming everything about a trillion dollar company just to back up an opinion?

Xbox have already said they’ll be flexible and competitive on pricing.

$500 is the max, console manufactures have seen what happens when you go over and offer expensive launch consoles.

  stormbringervane

Why are you comparing consoles are sold at loss in the past vs now?

Do you realized without Tariffs in the past thing are way different vs now ?

You think the 25% taxes is not heavy? Then why it impact heavily on every part of others country

All you have to say is : Phil said stay agile on price, it means no where imply the 500$. While The us-China trade war I list are real, has real number and you call me assuming? I mean?

Batmans_other_butler 2

Because it doesn’t matter if a console was sold at $600+ and still sold at a loss it’s not a viable product for that price.

MS will eat the cost so their product can have a fighting chance, imagine if MS said no and didn’t take the loss but Sony did and was much cheaper, XSX would be DOA.

Xbox makes over 10 billion a year, MS is a trillion dollar company with 150+ billion just in cash sitting around, they will eat the costs because they know they have to and can afford it.

  stormbringervane 1

Again you are assuming again. Sony 500 price ps3 back then still sold at decent pace, they just sold less than MS . And that is without Tariff back then

You also seems to forget the part i said, corp who goes 2nd can announce 500$ bucks , but the one who 1st will more likely to get 600 price due to US-China trade war

Your evidence are backfire you, you also spreading information out of your asses without any actual claim. While I give information with actual data

Corp isn't working on 1 person who handle price, it's between stock holders as well. Even console at 1 dollars losses already getting massive loss due to how units come into place.

Example: Cost to make everything went up for 25%. From let's say 100 dollars loss -> 125 loss. Let's say they are selling 10 million consoles. That mean the 25 bucks initially turn into 250 million more additional losses.

Batmans_other_butler 2

Wut? The PS3 got fucked because of the price and only came back later in the gen.

I’m not forgetting it because it makes no sense at all, a trillion and billion dollar company both know the other will go 500 when they go 600 so they’ll just still announce it at 600? Why would either do that if they know the other will go 500?

It absolutely is between a small amount of people to decide the price, it has nothing to do with stock holders, the CFO is mostly in charge of the pricing and if they fuck it up they answer to the board and stock holders. Stock holders aren’t all sitting there debating what they think a good price of Xbox will be lmao.

No offence dude but you clearly seem to have no idea how business works at all,

Mustache_Guy 1

Microsoft has a net value of nearly 1 Trillion dollars. It briefly was 1 Trillion in 2019.

I think they can afford to take a loss on selling a console, that likely took them anywhere between $450 to $550 to manufacture, for at most $500 if not less depending on if they really try to undercut Sony or not.

$600 consoles right now would be dead on arrival and lose them more money than selling it for a loss.

Laughing__Man_ 4

Consoles are often sold at loss.

The parts inside are heavily modified and often bought at a large discount from the makers.

  stormbringervane

Sold at loss =//= massive loss

Tariffs for china in the past was not a thing. Please don't compare past to present

Example: Cost to make everything went up for 25%. From let's say 100 dollars loss -> 125 loss. Let's say they are selling 10 million consoles. That mean the 25 bucks initially turn into 250 million more additional losses.

This are very small losses and sale . It will added up exponentially

Laughing__Man_ 4

MS has already stated they are flexible on the price. Also mega corp that makes billions daily...so...

  stormbringervane

Stay flexible on price=//= implying 500 bucks.

All you assume is they can handle loss, which again not how business works. You also assume the billion daily number

You also think the 25% Tariffs not gonna affect final price which that gonna be exactly the problem.

Selling at loss for a millions unit will exponentially the loss . It's not simple as console sold at loss argument. It's meaningless

You also forget the part I mentioned Corp who announce 1st will probbly be 600 bucks. And who goes 2nd then know can announce 500$ price.

Batmans_other_butler 3

The first won’t be 600 and the second 500 smh

Both know you can’t announce it for 600, both will be wanting 500 and seeing if the other goes lower so they can match it.

  stormbringervane

Again assuming again,

That is how I know you already has nothing to say

While I give out actual data and numbers. You and laughing man just basically repeat information that spread out of your asses. Alright good day

Batmans_other_butler 3

You haven’t given out anything except saying you’ve done research so therefore the first will be 600 and the second 500.

Your weird assumption that one will go 600 even though they know the other can go 500 is telling you have no idea what you are talking about

Your “research” just seems to be you repeating tariffs over and over again.

Laughing__Man_ 4

>While I give out actual data and numbers. You and laughing man just basically repeat information that spread out of your asses. Alright good day

I mean you have given numbers but you have not given any actual proof behind those numbers.

You also might have numbers but numbers do not always lead to " a bad business discussion" 600 would kill the console.

Selling at a loss is better then no sales and stigma.

Laughing__Man_ 3

Pardon me for now taking the word of some random dude on the internet who likes to type the word "Tariffs" a bit to much.

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I think I will follow the "Past" and expect a console maybe 500 ish or less from both companies.

Batmans_other_butler 2

But he’s done research! The first one will be 600 and the second 500 just do some research duh! /s