Console Price Drops

dollar sign In recent years the big three console makers are pretty consistent in their pricing strategies with Playstation 2 taking an early lead and launching at $299, Xbox (original) following at the same price a year later, and Nintendo GC coming in as the value player. Price drops seem to occur during the first half of the year around the time of E3.


Console Prices at Launch and Drop Points







2000 2001 2002 2003 2004
PlayStation 2 $299 $299 $199 $179 $149
Xbox n/a $299 $199 $179 $149
GameCube n/a $199 $199 $99 $99

In the last generation of consoles, the PS2 launched at a higher price point than the SEGA Dreamcast the year before but brought superiour technology to the table and got away with it. SEGA found themselves shown the door quickly and exited the business. At the time everyone was fighting the 900 lb gorilla known as Nintendo.
Since then, Microsoft followed Sony’s PS2 price with [slightly] better technology in 2001. Each price drop for either MS or Sony has been matched by the other while Nintendo stays below them both in the value category (possibly due to the GC being ONLY a game platform and not playing DVDs).

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