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GameStop: Lack Of PS3/360 Price Cuts Hurt Our Bottom Line

Normally, when a new generation rolls around, last-gen hardware prices fall pretty rapidly.

But we haven't seen that yet for PlayStation 3 and Xbox 360, and GameStop blames this on lower-than-anticipated hardware sales.

During a post-earnings conference call, GameStop president Tony Bartel agreed with an analyst who said price drops for the older platforms are long overdue:

"We think it would be excellent and definitely would increase the sell-through rate on the old-generation consoles. We definitely think that would help."

Bartel added that he has no direct knowledge of any upcoming price cuts. The retailer expected these cuts to happen during the year and without them, PS3 and 360 software and hardware are down 57.8 percent. That's "significantly more" than the company expected at the start of the year and as a result, GameStop has been forced to lower its fourth quarter forecast.

On the flip side, PlayStation 4 and Xbox One sales remain strong. The installed user base is 73 percent higher than the PS3/360 user base over the same period of time a year ago, and that's impressive. Looks like everyone's just far more interested in jumping into the new consoles; don't forget that last generation limped on for a while.  "Generational fatigue" was a very real thing...

Tags: ps3 sales, xbox 360 sales, ps3 price drop, xbox 360 price cut

11/21/2014 11:11:08 AM Ben Dutka

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Comments (7 posts)

Friday, November 21, 2014 @ 11:37:35 AM

Price cuts can be a big deal.
Look at XO. It's bundled values with this years hottest games made it do a 180. MS is poised to take November. Poor wii u will be dropping to last place. That's a system that needs a price drop.... Like yesterday

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Friday, November 21, 2014 @ 10:27:40 PM

Yeah, the Wii U desperately needs a price drop, or at least larger internal storage to justify the price.

Don't get me wrong, I love my Wii U. It's actually my next gen system of choice in terms of games, followed by the Xbox One. It's just, if not for my 1TB hard drive, I'd probably never even have bothered with the system.

As for the Xbox 360 and PlayStation 3, $250 isn't that bad of a price for what's likely to give you years of fun experiences. There's a whole back catalogue of games to enjoy.

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Tuesday, November 25, 2014 @ 8:19:55 PM

I don't know about X1 taking November as we heard that all year and it never happened.Plus global sales are all that matters and those hottest gai are multi plat and still selling better on PS4.

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Friday, November 21, 2014 @ 4:06:51 PM

I'm betting that both Sony and Microsoft were a bit optimistic in their capacity to reduce manufacturing costs this time around (or we're approaching an era when we can't get prices well below $200) - I remember $100 (and less) PS2's early in the PS3's life - I doubt we'll ever see $100 PS3's or X360s (outside of clearance deals/short-term sales/etc;).

I suspect they've both thought a bit more about this for the PS4/XB1 gen, and things at the tail might be better.

Last edited by Axe99 on 11/21/2014 4:07:05 PM

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Friday, November 21, 2014 @ 5:10:47 PM

Kind of hard to warrant a price drop for old systems when the next gen systems barely have any decent titles worth pinning over. And with all the titles still releasing for both generations, I doubt we see any drops in price anytime soon.

Unless you give the people solid reasons to upgrade or get the next best thing, you can't just drop the prices on still very capable pieces of hardware.

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Friday, November 21, 2014 @ 6:33:02 PM

poor gamestop didnt make as much money as they thought they would. waahh

seriously though why would sony drop ps3 prices. ps4 is selling like crazy. they are making money on it. if someone wants a ps3 they will buy it at current cost or just wait til next year to buy it at the cheap price. most likely if you havent bought a ps3 buy now you will skip it for the ps4.

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Sunday, November 23, 2014 @ 5:41:15 AM

well what can i say they can't control M$ or sony but i think this is their own fault but whatever they live i'm sure as for cheaper ps3's wel see when that happens soon enough

happy gaming

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