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  1. #31

    Re: Xbox 720 and PS4 This Year!

    Quote Originally Posted by bazongaman502 View Post
    ^ already confirmed max :P
    It appeared to me that Abrupt didn't understand, so I reposted.
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  2. #32

    Re: Xbox 720 and PS4 This Year!

    What do you mean? My post referred to the article you linked us to.
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  3. #33

    Re: Xbox 720 and PS4 This Year!

    Video gaming pricing for dummies, so you guys understand and don't immediately cuddle your wallets for your final moment with them:


    Consoles:
    The next generation of consoles is expected to be /much/ cheaper than the current generation. Why?

    The worst part of having to pay that much for consoles is that they probably spend less than $50 making a console. Its ridiculous.
    Well, first, most companies take a loss on consoles. The PS3 initially marketed at $600, and it cost $800 to make (mostly because of blu-ray, but w/e). That being said, it definitely costs them a lot more to make the console than they sell it. There are two main reasons behind the expense:

    1. You're basically paying for a custom computer. Consoles up till now have had customized parts designed and used for it, based off computer parts. So you really can't compare the price of a console to a TV or phone, but you have to compare their prices to PCs. And you really can't even compare it to PCs, because the parts are customized and made to fit, so you'd be better off comparing the prices to laptops, which are even more expensive. No PC costs $50 to build.

    2. Again, parts are customized. These are large companies in technology, and they can get customized parts for their systems but it still isn't cheap. Plus, companies realize these consoles can't be improved halfway through it's life cycle, so they beef it up with the best tech they can put in it, so it lasts without becoming outdated. You may think the 360 is shit now in terms of specs, but I guarantee it runs better than your computer you got in 2004 running off the first version of windows XP.

    But Sony/Microsoft/Nintendo still sell the consoles at a cheaper price, because they know once you buy the console you'll buy the games, and they get a fair bit of that $60 you spend on a game, that's where the money is truly made.

    For example, your Xbox 360 runs off a Triple-Core processor, which may seem sub-par now, but it's really not bad considering back in 2005 we were all fapping over dual cores, and here 8 years later the processor is still nearly as good as a standard quad core. That's a lot when you think about how much technology advances in 8 years, the first iPhone only came out 6 years ago.

    Also, the value of technology decreases at a rapid pace. A top of the line computer from 4 years ago is probably middle-lower market now, the same goes for these consoles. That's why PS3s and 360s can be picked up for like $250 now, and to be honest on the current generation, I'd suspect Microsoft and Sony are raking in a lot off new console sales since the price of technology goes down so quickly. So if you bought the original release PS3 for $600, you made $200. If you buy one now for $200, you're probably giving Sony a profit.


    Back to the next-gen topic. the PS4 and Xbox 720 are rumored to be cheaper than their predecessors. How can that be?

    Well, the PS3 used very customized and high end parts originally, such as a Blu-ray, and as such it was a lot more expensive than the Wii and 360. The xbox was cheaper than the PS3, and a big part of that was that it was structured more off of an actual computer than a customized piece of hardware. It actually used a PC triple core, a graphics card, and RAM. Basic computer parts are cheaper, much cheaper, than the customized crap Sony used. Microsoft used that and thats why the Xbox's are so much cheaper (one of the big reasons).

    With this next generation of systems, Sony and Microsoft both supposedly plan to use generally basic PC parts to make the console, and as I said, that's much cheaper. That makes the Xbox 720 about the same as the 360 released at, possibly a little cheaper to keep its edge considering Microsoft is used to being the cheaper console. It makes the PS4 a lot cheaper because it's using cheaper parts.
    The other thing that makes these cheaper is the fact that technology itself is so much cheaper than back in 2005. 8-9 years is a long time for a new console to come out, and all that time has deflated the price of technology, so Microsoft and Sony can up the power of a next gen console by the same proportion as they did from the last generation to the current, but spend less because the time between generations has been longer, allowing prices to come down on that level of technology. A triple core in 2005 was more expensive than a SIX core is now. My dad built a PC with a six-core for under $450, so Microsoft could easily double the processing power of the 720 compared to the 360, quadruple the memory, both RAM and GPU, and still come out with a console that releases as cheaper than the 360.


    Game Prices:
    Game prices will most likely also go down for some simple reasons that don't require walls of text:

    1. The demand for console gaming has gone down.
    2. Technological increases have made it possible to make better games with less people, so reduced labor cost.
    3. A lot of games will start being DLC only, or start having online codes you need to play, forcing you to buy a new game against a used one. This point is the general ousting of used games, as the only person who makes money on used games are the retailers (Gamestop). DLC/Access Coded games mean everyone has to buy a new copy from the source.

    You all may hate those things, but in general, it does lead to a cheaper game. The $60 price tag recoups losses on used game trades they get nothing for. I'd rather pay $30 for Halo 5, which I can never sell or give to anyone than pay $60 and trade it back 3 years later for $10. You win, the producers and developers win, Gamestop gets the damn justice they deserve for ripping us off on sold games.



    Minor necro-post but I wanted to rant.



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  4. #34
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    Re: Xbox 720 and PS4 This Year!

    Quote Originally Posted by Anarchy View Post
    Video gaming pricing for dummies, so you guys understand and don't immediately cuddle your wallets for your final moment with them:

    ...

    Minor necro-post but I wanted to rant.
    You're very optimistic about how "Access-Coded" games will affect the market. If games truly do get significantly cheaper I'll be happy to have a system like that, but being the cynic that I am I feel as though MS and Sony will keep the prices high to make as much profit as possible. (And considering games downloaded from XBLA cost as much as their on-disc counterparts it's not like it's out of character to rip us off.)

    Good, informative post as a whole though

  5. #35
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    Re: Xbox 720 and PS4 This Year!

    Quote Originally Posted by Anarchy View Post
    3. A lot of games will start being DLC only, or start having online codes you need to play, forcing you to buy a new game against a used one. This point is the general ousting of used games, as the only person who makes money on used games are the retailers (Gamestop). DLC/Access Coded games mean everyone has to buy a new copy from the source.

    You all may hate those things, but in general, it does lead to a cheaper game. The $60 price tag recoups losses on used game trades they get nothing for. I'd rather pay $30 for Halo 5, which I can never sell or give to anyone than pay $60 and trade it back 3 years later for $10. You win, the producers and developers win, Gamestop gets the damn justice they deserve for ripping us off on sold games.
    A fresh perspective on the used game limiting aspect, but I suspect it won't work, and so does a majority of the gaming community. It' a nice business model, and I am always for cutting out the middle man, but the problem is that such a thing will drastically the reduce the amount of retail locations for purchasing a console and games. We may think that it is easy to learn about upcoming gaming releases, but not for everyone. The fact is that those retailers are largely responsible for how well marketed a game gets to be. I have classmates who have only just begun to learn about Destiny.

    If we switch to restricting used game sales, the gaming retailers could refuse to carry that manufacturer's console. This won't hurt the retailers, because each manufacturer rivals the other. No one company wants to be the first to say they intend to try the restriction of used games, because the others then need only say they don't intend to, leading to more retail support for them and a press and market nightmare for the pioneering manufacturer.

    If everyone adopted the used game restriction strategy, and the basic model used by Steam (where one must have internet connection at least initially to buy a game or unlock an access code), yes, we would have some awesome, cheap games. But we are ruled by other ambitions, and so we hang onto the middle man, drive up prices on games and consoles due to heavy expenditures on marketing, and hope that by next generation, people will warm up to the idea.


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  6. #36

    Re: Xbox 720 and PS4 This Year!

    The facade that these companies will "rip us off" is absurd. By rules of inflation, games should be $70 by now, but they aren't. People wont pay $60 for a DLC game, they just wont, people don't get the same sense of worth without a physical copy. Game makers can't just raise prices and be rich, the economics of it don't work that way. People will stop buying, and their customer base will drop to only the hardcore fans, which isn't enough for anyone to live on.

    Cheaper games by cutting out retailers /will/ make things cheaper one way or the other. That much is guaranteed. Not only would they not have to recoup used game sales, since their new games will usually only sell for a few months before dropping off the face of the planet, but they also wouldn't have to pay for production of the physical copy, and to top it off they wouldn't have to give gamestop a chunk of money for selling the item.


    If MS/Sony cut out gamestop, there's really nothing gamestop can do, especially if they lower game prices. They wont need the retailer to do anything at all besides sell the console, and if they refuse, walmart, target, and tons of other places will still happily sell the console, and at the least Microsoft/Sony could start shipping consoles to individuals. Gamestop will be forced to sell consoles to reap what little cash gains they can get.

    But if the online sale of mainstream games ends up still being $60, Gamestop could very well leverage against it, but that wouldn't make sense in terms of business or logic for Microsoft/Sony when they can sell a game through DLC for $40 and make more of a profit than selling it for $60 through Gamestop.



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