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Retail

Ubisoft ready for HD console price cut

Fri 17 Jun 2011 1:50pm GMT / 9:50am EDT / 6:50am PDT
RetailHardware

Guillemot wants boost for stagnant European sales; "The UK is declining quite fast," says CEO

Assassin's Creed publisher Ubisoft has said it expects a price cut on both the Xbox 360 and PlayStation 3 this year.

Such a move would help revitalise a stagnant European market for boxed video games, said CEO Yves Guillemot, who noted that the UK is currently suffering from poor console game sales.

"The UK is declining quite fast," he told GamesIndustry.biz. "It's declining, if we don't take into account the digital revenue."

"This year they will continue to drop the price," said Guillemot of Sony and Microsoft, and that both will be feeling "pressure" from Nintendo's recent Wii price cut.

And with the first of a new wave of consoles hitting the market with the PlayStation Vita this year and Nintendo's Wii U next year, Guillemot is happy to embrace the costs and creativity associated with new hardware.

"I always like a new generation of consoles because it's really the best way for us to be more creative," he said. "It gives you lots of new ways to create.

"And also the gamers are more open to innovation when a new console is coming, they don't consider all the brands the same way, so they go after something completely new and they try it. When the machines have been there for a long time you can always improve and increase the quality, but you don't make revolutions in the way things are done."

A full interview with Yves Guillemot will go live on GamesIndustry.biz next week.

5 Comments

Dale Bray Studying Psychology with Politics bsc, Keele University

4 0 0.0
I've been looking for a ps3/ upgrade for my Xbox so a price drop would be great news.

Posted:3 years ago

#1

Richard Gardner Artist, Crytek

123 32 0.3
If I was Sony and Microsoft I would hold any price drops and collect your advertisement budget ready to launch a massive attack against Nintendo next E3, crash your console price to be on the verge of unprofitable levels while ramping your advertisement spending into the market Nintendo hopes to capture. Its not so much about being profitable for that year, but crushing your competitor before they get the chance to do the same to you.

Also just to add, on games sales consumers these days need to be tempted into buying something, with the powerful brands we have and consumers having that little bit less money they would rather buy a game they have security in and know they will enjoy. This can be done through branding or tempting the audience with cheaper tastes of a pie they haven't tasted before.

One way to look at consumer spending is the fast food industry, something as plain as day. Would you honestly spend a massive amount of money and try and open thousands of stores around the world to compete with MacDonalds, Burger King, KFC etc... or do you do the smart thing and open up a single store, prove your concept and gradually and slowly build a franchise and business.

The games industry seems to just want to spend the most amount of money to try and jump every hurdle every single other industry in the world faces. That's my little opinion on why profits are down and the insecurities consumers have against unproven brands.

Edited 1 times. Last edit by Richard Gardner on 18th June 2011 9:35am

Posted:3 years ago

#2

James Finlan Studying Information Systems, University of Manchester

62 0 0.0
Nice smarts Richard, I approve. That is exactly the approach they should take, literally cut the price in half a week before Wii U launch and cut them right out of the market for at least 6 months, just as they are recovering you announce your own next-gen machine with specs 4x of greater those of of Wii U. At that point both Microsoft and Sony give themselves a huge opportunity to steal bucketloads of marketshare from Nintendo.

This time around both need to be alot smarter, why it took them 4 years to get some form of motion control out is beyond me. They should have just cloned the Wii controller idea and cut them off at the knees way before they swallowed nearly half the market.

Posted:3 years ago

#3

Gregory Hommel writer

91 53 0.6
I agree that a price cut should be part of Sony's and Microsoft's strategy, but as far as Ubisoft's request, Sony in particular should tell them to shove it. Ubisoft has embraced the PS3 like Iran embraces gay rights. In other words not at all. They have however embraced the concept of beating a game engine to death. As a consumer it wouldn't bother me if I never played another Ubisoft game on the PS3.

Posted:3 years ago

#4

Joe Winkler trained retail salesman, Expert

171 4 0.0
It's not only a question of price drop. A lot of people already have an installed based console. The important thing (as always) is the software and attached peripheral that sells the hardware.

The Xbox-Kinect bundles sell pretty well, even if the price is higher than the PS3 only package.
2 weeks ago we had a special offer, selling the Xbox 360 slim premium (250 HDD, headset...) for 50 (199 isntead fo 249) off. It sold well but not as much as hoped.
People don't recognize offers if they didn't show intrest for those things in the first place.

They price cut would be /and will be good placed later this year (holidays) like always.
It's not always a question of "how much does it cost" it's a question of "what can I do with it".
The installed basis is enough to sell a lot of games, therefore we only need innovative titles like always.

Posted:3 years ago

#5

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