Wii, PS3, Xbox 360 console prices could fall with U.S. economic recession
By Triston McIntyre
With flocks of gamers of all sizes, shapes and ages storming local game retail locations for copies of Grand Theft Auto 4, the weight of the current U.S. economic recession probably is alleviated, at least while gamers run around Liberty city, blasting hapless bystanders and jacking fast cars. However, the fact of the matter is the U.S. economy is in a recession, and the CEO of Activision, among others, believes that console prices will have to drop if manufacturers want to keep moving hardware.
Activision CEO Bobby Kotick recently spoke with Reuters on the current state of the gaming industry, and his outlook is bad for manufacturers, but vibrant for gamers.
Kotick said, “With the rising costs of fuel and food and housing, it is more difficult to go out and buy a $399 console, and I think it’s going to put pressure on the console manufacturers to reduce their prices.”
That should seem fairly implicit to an economic recession for anyone with some sense of economics, but there’s a downside: for kids who are looking to get their folks to buy them consoles, the prices of gas as well as the failing housing market might keep them from being able to purchase consoles, no matter how much the prices drop. Obviously, adults will have an even harder time funding new console purchases as the times get tighter.
One interesting note that Kotick made, however off topic it might be, was that the takover of Take Two media by EA doesn’t bode well for the gaming industry, because the giant that is EA tends to overlook creativity in favor of pumping out games with facial makeovers. Most specifically, Kotick fears that the sports game niche will suffer extensively from the takeover.
Save your pennies now before the recession and failure of the U.S. economy is in full sway; if you can wait it out, you might just see price drops that cause consoles to be a bit more wallet-friendly.
Related:
Stumble It!
Tips N4G
May 1st, 2008
quick… release a 120 gb ps3.. Id buy it.. despite the recession.. also because I dont live in the US… life is good….
May 1st, 2008
120Gb would be great..I’m ok with my 40, though. Just picked up GTA IV and a dualshock 3. In for a good weekend, methinks..
May 1st, 2008
DAMN YOU TRISTAN!!! I still have to wait for mine… stupid air mail….
I WILL BE AVENGED!!!
May 1st, 2008
Curious, the economic indicators all say the S is OT in a “recession”. Despite what people want to think, yes, the economy is growing slowly BUT it IS STILL growing.
May 1st, 2008
Just a thought, but wouldn’t the prices drop sometime later this year (fall) regardless of a recession?
May 1st, 2008
it should fall during the Christmas time…
I think this IS a recession DaveB…
the stock market collapsing… the loss of jobs… the devalueation of dollar..
I believe it is recession…
too bad… never worry… you can bounce right back.. other third world countries have done it… so will USA… meanwhile they will be the butt of everyone else’s economic joke… but temporarily…
May 1st, 2008
I don’t know, considering how the average U. S. citizen lives in comparison to the average European, I’d say we have a long way to go before we are really “hurting” as a country.
Yes, technically this has the signs of a recession, but I liken it to the real estate market: when it’s already overvalued, it should be expected to balance itself out, and that means going back to a reasonable state.
May 2nd, 2008
but there are reports of the growing debt of US citizens.. and many people living paycheck-to-paycheck or living betong their means (I just saw it on Oprah.. sad I know)
I hope America comes out of this recession… we cant let the Japs take over the world…. or the Indians… the Indians with their silly Bollywood movies where people prance around like pansies and the script is a copy-paste of Hollywood…
GO TEAM AMERICA!!!
May 2nd, 2008
coming from a political science major and someone with a background in econ, I can tell you for a fact, we are way into full swing of economic recession. That’s evidenced in the housing, food, technology, and fuel markets. The government won’t say that, but we are. We won’t come out of it for a while, at least until the low value of the dollar rises and our economy recovers from the fall we’re experiencing currently.
May 2nd, 2008
if you dont like America then you can just GET OUT!!
XD
May 2nd, 2008
Something tells me that if we weren’t in a recession, the government wouldn’t be handing out $600 tax breaks to everyone.
Times are tough.
-Arvis
May 2nd, 2008
it’s hard to get the current administration to even say the R-word, but yes, from all indicators that’s where we are. Arvis - the $600-$1200 are not tax break checks but rather a forward of next year’s taxes. don’t worry, you’re refund won’t be smaller than usual next year. The reason the Bush administration did this was twofold; 1. to stimulate the economy, but from all accounts recipients will more than likely use the money for standard of living expenses rather than “found money’ to use at the local retailer and 2. (the part they WON’T say) is to convince everyone that republicans aren’t THAT bad, just in time for the primaries. I sincerely hope they do drop the prices on the consoles. it’s a crime they even upped the launch price by $100 and games by $10. if they ever want to see penetration like last gen, they need to hit the magical $199 point. but alas, i don’t see that happening for anyone anytime soon. maybe ninty…
May 2nd, 2008
So given the recession does that mean that Bluray will sit on the shelf?
May 2nd, 2008
Console sales haven’t been hit, and won’t be, because those who can afford it now will be able to afford a one console investment in entertainment for the whole family for the long term (2-5 or more year ) future.
Homes, gas, and food prices may rise, but the American middle to upper class has plenty of leeway before they are begging for scraps. That is to say, this isn’t the Great Depression, and game sales will take a hit before console sales will.
The selling point for consoles is that it can bring the family’s entertainment together for one price, and games can be rented (and even bought) cheaply.
Playing games could even be considered cheaper entertainment than watching movies, considering one game can be played much longer than any one movie.
Also taking into consideration that some consoles already play DVD’s natively, can access and utilize the internet, and can download digital content, and you have further justification for the one time purchase that will last at least a few years and have the ability to entertain more than one member of the family.
May 3rd, 2008
ugh.. you and your “renting before buying” you make me sick…