wraggster
September 11th, 2007, 23:52
via joystiq (http://www.joystiq.com/2007/09/11/is-the-ps3-above-the-average-consumers-price-ceiling/)
We know that the PS3 is relatively expensive for a game console, but how much cheaper would it have to get to change that perception? In other words, is there a specific cut-off where a piece of consumer electronics goes from "unfathomable" to suddenly "affordable"?
Creative Strategies Analyst Tim Bajarin has a theory about that. In a USA Today article yesterday, he says that the average consumer won't pay more than $399 for a piece of electronics, no matter how awesome and must-have it may be. While consumers will make exceptions for high-end items like TVs and computers, smaller items have trouble reaching mass appeal until they drop below $400. "That is pretty much the highest you can get and still have large volumes," Bajarin said.
The article specifically cites the PS3 as a cutting-edge device that has had problems selling above this ceiling. They might not have a problem for long, though, if analyst predictions of a $399 PS3 by April pan out. Hey, if you're going to listen to one random analyst, why not go all the way?
We know that the PS3 is relatively expensive for a game console, but how much cheaper would it have to get to change that perception? In other words, is there a specific cut-off where a piece of consumer electronics goes from "unfathomable" to suddenly "affordable"?
Creative Strategies Analyst Tim Bajarin has a theory about that. In a USA Today article yesterday, he says that the average consumer won't pay more than $399 for a piece of electronics, no matter how awesome and must-have it may be. While consumers will make exceptions for high-end items like TVs and computers, smaller items have trouble reaching mass appeal until they drop below $400. "That is pretty much the highest you can get and still have large volumes," Bajarin said.
The article specifically cites the PS3 as a cutting-edge device that has had problems selling above this ceiling. They might not have a problem for long, though, if analyst predictions of a $399 PS3 by April pan out. Hey, if you're going to listen to one random analyst, why not go all the way?