Expect game console price reductions for Wii, XBox 360 and PS3

Derrick

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In the product life cycle there are four phases namely the introduction phase, the growth phase, the maturity phase and the decline phase. It is marketing 101 for those who study the field. The current crop of gaming consoles are now in the mature part of this cycle, which means that the product has recuperated its initial research and development costs and also made a large part of its initial profits. New product development has started for replacements and it is time to make the product as widely used as possible before it goes into decline and gets replaced with a newer product.

Some of the signs that identify this phase in the product life cycle include:

The introduction of new features to make the product stand out more from competing products. Think XBOX 360 NATAL or PS3 Motion Controller, both of which will soon come to market.

Price reductions and new deals on product variations to increase uptake in the face of competition.
Distribution is intensified with more incentives to make purchase decisions easier for customers.
Much more promotion to bring home the differentiation message to consumers…

Microsoft may not actively be giving indications that price reductions are on the cards but they are offering product variations on their console as is the PS3. Playstation 3 pricing actually dropped by 25% in Japan a couple of weeks ago. These console in my opinion are now in the mature phase of the product life cycle which means you will have much cheaper access to them in future. As they go into decline within the next two to three years, they will become dirt cheap as well!

All I am saying is, get ready for cheaper consoles relatively soon in South Africa.
 
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