View Full Version : Xbox360 and U.S. Recession
With the United States in a huge recession and at war, thanks to cough, cough, you know who. How will this effect the sales of the 200.00 Xbox360 and the 400.00 PS3 on the eve of the 2008 holiday season? Our economy is a prime example of where arrogance and assumption based on past achievements will get you.
LadyDuoMaxwell
09-25-2008, 02:42
I have to no clue to be honest.
If things start to get really bad, I would most likely to cancel my Gold Membership, but that is most likely it.
nate0409
09-25-2008, 03:03
im taking these times as a perfect time to learn how to budget myself.... everything i make at work i use for bills and things i need.... and anything extra i get from either tips or selling things... is for things i want but dont need... so i'll just have to save a little longer now instead of being able to just go and buy things whenever i want..
Husker86
09-25-2008, 03:09
With the United States in a huge recession and at war, thanks to cough, cough, you know who. How will this effect the sales of the 200.00 Xbox360 and the 400.00 PS3 on the eve of the 2008 holiday season? Our economy is a prime example of where arrogance and assumption based on past achievements will get you.
You're referring to the overzealous lenders who lent ridiculous amounts of money to people without checking them out closely, or are you talking about the other side, the genius citizens who borrowed for homes they couldn't afford because they assumed they would be able to sell them back later for profit and are now forced to default on their loans? Well either way, I guess you're right, they're both at fault.
I don't think there will be a very large impact on console sales.
Looking at the way things went down, It would seem that someone had a inside scoop on things to come, regarding the economy. First we have a significant price drop on all Xbox360 SKUs. Then what was it? A week and a half to two weeks later financial chaos? Coincidence or did someone see this coming. If I were a top exec in a company as big as Microsoft, someone would be fired if I was caught by surprise by something so negatively significant that effects so many people around the world.
LadyDuoMaxwell
09-25-2008, 03:14
Looking at the way things went down, It would seem that someone had a inside scoop on things to come, regarding the economy. First we have a significant price drop on all Xbox360 SKUs and what was it, a week and a half to two weeks later financial chaos? Coincidence or did someone see this coming. If I were a top exec in a company as big as Microsoft, someone would be fired if I was caught by surprise by something so negatively significant that effects so many people around the world.
I thought the console price drops were made, so they can get rid of the old models and replace with newer ones?
Linkedscorpion
09-25-2008, 03:34
im taking these times as a perfect time to learn how to budget myself.... everything i make at work i use for bills and things i need.... and anything extra i get from either tips or selling things... is for things i want but dont need... so i'll just have to save a little longer now instead of being able to just go and buy things whenever i want..
you should rent out that sexy BMW :O :O i would know a bunch of people would drool at that ^_^
SwitchBlade
09-25-2008, 03:37
It could have a positive effect on sales of the arcade unit, people want games, see $199 is the cheapest. Sold.
But "you know who" isn't to blame for this...Theres plenty of blame for him regardless though.
tmacfan4321
09-25-2008, 03:55
It could have a positive effect on sales of the arcade unit, people want games, see $199 is the cheapest. Sold.
But "you know who" isn't to blame for this...Theres plenty of blame for him regardless though.
He's a figurehead. He isn't to blame for all of this. He had a part in it, but he is far from the only one responsible.
The politicians are attacking Wall Street right now because the American population doesn't want to hear that it is their fault, they want the blame to be on the "big, bad, rich, and greedy" people on Wall Street.
Neither candidate will come out and say that people should have used common sense (i.e. don't borrow more than you can pay) because they are trying to sway the population to vote for them. Honestly, if I were 18, I wouldn't vote for either candidate. Both of them are so full of ****, it isn't even funny.
Both sides are to blame for the current economic crisis we are facing on Wall Street. Both the lenders and the people taking the loans are to blame. Ignorance is not an excuse.
My aunt actually was employed in the sub-prime mortgage industry, she lost her job when her company went under about six months ago. The crisis is just being seen in Wall Street and the media today; this wasn't something that happened overnight.
i wouldnt be surprised if dec npd numbers were roughly the same as last years numbers despite both consoles now being cheaper than before.
Plazaskater
09-25-2008, 05:49
i think that the $200 360 is looking alot better for most gamers...the ps3 might suffer some holiday sales this time around but we will have to wait and see
webshark
09-25-2008, 06:05
trending has shown that in many cases, low cost leisure spending actually tends to go UP in times of economic crises. people need something to dispel their stress on.
bigjonny
09-25-2008, 09:38
hay guyz i h8 bush too am i kool now?
anyways...i dont think it will have much effect at all. if it was going to then it would of already happend.
Soldier 95B
09-25-2008, 12:06
Well, the recession isn't EVERYWHERE in the U.S. My business for example is up almost a million dollars for the year, beating our budgets and forecasts each month. Overall, I would say the U.S. is in a down turn though.
Based on record sales of different software titles this year through the most recent Star Wars title, it leads me to believe we will still have a stellar holiday of gaming sales.
Well, the recession isn't EVERYWHERE in the U.S. My business for example is up almost a million dollars for the year, beating our budgets and forecasts each month. Overall, I would say the U.S. is in a down turn though.
Based on record sales of different software titles this year through the most recent Star Wars title, it leads me to believe we will still have a stellar holiday of gaming sales.
Do you work in Insolvency?! ;-)
I think the downturn will hit Sony the hardest because of the price point of the PS3 and particularly because of the effect it can only have on blu ray adoption, I mean how far along people's priority lines is replacing DVD gonna be?
even in a recession people will allways buy consoles. and not pay there rents and house bills
thats the american way lol
Perfect Sin
09-25-2008, 17:01
The USA is one giant conspiracy. And the American people are either too stupid or too lazy to separate the bull **** from the truth, and the fact from the fiction.
Here's a tip, stop watching TV and start reading the Internet.
trending has shown that in many cases, low cost leisure spending actually tends to go UP in times of economic crises. people need something to dispel their stress on.
If this is true it could show positive results for the Xbox 360 and PS3. The Xbox360 arcade at 199.00 is definitely looking good to last-gen gamers and parents looking for a cheap entry level next-gen system. The PS3, though expensive, still may be able to lure moviegoers away from theaters to Blu-Ray sales and down loadable movies. Let's face, staying home and entertaining will save us all money.
gamecrazy
09-25-2008, 17:45
The USA is one giant conspiracy. And the American people are either too stupid or too lazy to separate the bull **** from the truth, and the fact from the fiction.
Here's a tip, stop watching TV and start reading the Internet.
QFT. The markets are being manipulated. What is going on right now is a huge transference of wealth. Money doesn't just disappear you know. It merely transfers. The deregulation of the loan industries combined with runaway deficits thanks to endless war is what led to the current crisis in the US economy.
Rareware
09-25-2008, 17:57
Actually we're not in a recession as prices are increasing, not decreasing. There is also continued economic growth which confirms no recession.
QFT. The markets are being manipulated. What is going on right now is a huge transference of wealth. Money doesn't just disappear you know. It merely transfers. The deregulation of the loan industries combined with runaway deficits thanks to endless war is what led to the current crisis in the US economy.
You mean transfers to people like Warren Buffet? Or how about George Soros? Wonder who they're voting for....
Regardless, this imaginary recession hasn't had any impact on game sales so far. Last I checked, the industry was having another record year.
chartwel
09-25-2008, 18:43
Actually we're not in a recession as prices are increasing, not decreasing. There is also continued economic growth which confirms no recession.
im glad someone beat me to it. looks like a lot of people dont even know what a recession is.
gamecrazy
09-25-2008, 18:48
You mean transfers to people like Warren Buffet? Or how about George Soros? Wonder who they're voting for....
Yes exactly- this is more than a simple left vs. right thing.
ps3justin
09-25-2008, 18:49
im glad someone beat me to it. looks like a lot of people dont even know what a recession is.
ok a recession is 2 financial quarters of negative GDP growth, it has nothing to do with the price of anything, inflation can and often does occur in a recession. ?????????????????????/
edit" two 'consecutive' quarters of negative growth.
webshark
09-25-2008, 19:24
umm....money isnt disappearing. people were spending more than they actually hadin the hopes that they would get a huge payoff in the future when prices continued to soar. when they didnt, they were up sh*t creek, and honestly, its kinda their fault....
Rareware
09-25-2008, 19:25
ok a recession is 2 financial quarters of negative GDP growth, it has nothing to do with the price of anything, inflation can and often does occur in a recession. ?????????????????????/
edit" two 'consecutive' quarters of negative growth.
For the simple, that's true. For the educated, that's not accurate.
http://economics.about.com/cs/businesscycles/a/depressions.htm
Recession: The Newspaper Definition
The standard newspaper definition of a recession is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters. This definition is unpopular with most economists for two main reasons. First, this definition does not take into consideration changes in other variables. For example this definition ignores any changes in the unemployment rate or consumer confidence. Second, by using quarterly data this definition makes it difficult to pinpoint when a recession begins or ends. This means that a recession that lasts ten months or less may go undetected.
Recession: The BCDC Definition
The Business Cycle Dating Committee at the National Bureau of Economic Research (NBER) provides a better way to find out if there is a recession is taking place. This committee determines the amount of business activity in the economy by looking at things like employment, industrial production, real income and wholesale-retail sales. They define a recession as the time when business activity has reached its peak and starts to fall until the time when business activity bottoms out. When the business activity starts to rise again it is called an expansionary period. By this definition, the average recession lasts about a year.
ps3justin
09-25-2008, 21:20
Ok regardless it has nothing to do with prices of anything, that would be inflation or deflation. Are you saying we are or arent in a recession? By the real, economics class teaching we are not. By some committee's definition we are. Im an economy major and the definition of a recession is as i said. There may be better methods to describe the state an economy is in, but just because the BCDC decides to put their own definition to the word doesn't make it true. Every country has their own definition of what a recession is, ours is 2 consecutive quarters of negative gdp growth. We have yet to experience that, so no recession. Is there a downturn in the economy? yes. I don't really know what we are arguing about?
You're referring to the overzealous lenders who lent ridiculous amounts of money to people without checking them out closely, or are you talking about the other side, the genius citizens who borrowed for homes they couldn't afford because they assumed they would be able to sell them back later for profit and are now forced to default on their loans? Well either way, I guess you're right, they're both at fault.
I don't think there will be a very large impact on console sales.
I think maybe he's talking about the dumb *** that pushed through legislation to alow this to happen.
Yeah freeing up the regulations on lending was a good idea.
I hear the same guy who talked Bush into it, is now helping advise McCain.
Sometimes america gets what it deserves, other times, the world gets caught in the corssfire.
trending has shown that in many cases, low cost leisure spending actually tends to go UP in times of economic crises. people need something to dispel their stress on.
It's got a name, somethign to do with lipstick from memory.
They found purchase of lipstick would go up in times of finanical crisis.
I think maybe he's talking about the dumb *** that pushed through legislation to alow this to happen.
Yeah freeing up the regulations on lending was a good idea.
I hear the same guy who talked Bush into it, is now helping advise McCain.
You clearly do not know your history. This all started back in the Carter days.
Husker86
09-26-2008, 00:54
I think maybe he's talking about the dumb *** that pushed through legislation to alow this to happen.
Yeah freeing up the regulations on lending was a good idea.
I hear the same guy who talked Bush into it, is now helping advise McCain.
Sometimes america gets what it deserves, other times, the world gets caught in the corssfire.
It's got a name, somethign to do with lipstick from memory.
They found purchase of lipstick would go up in times of finanical crisis.
Excuse me?
In 2003 the Bush administration pushed for regulation of, you guessed it, Fannie Mae and Freddie Mac. Democrats voted against that, one in particular (cannot think of the name off the top of my head) said it would be "unfair" because some people wouldn't be able to get the "homes they deserve". He also stated that he saw no such crisis in the two lending powerhouses. Yeah...that went well.
edit: Figured you might want a link
http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B 63&sec=&spon=&pagewanted=print
Excuse me?
In 2003 the Bush administration pushed for regulation of, you guessed it, Fannie Mae and Freddie Mac. Democrats voted against that, one in particular (cannot think of the name off the top of my head) said it would be "unfair" because some people wouldn't be able to get the "homes they deserve". He also stated that he saw no such crisis in the two lending powerhouses. Yeah...that went well.
edit: Figured you might want a link
http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B 63&sec=&spon=&pagewanted=print
Not this Bush, I mean the 1st one.
But I stand corrected, it was after his presidency all this happened.
Phil Gramm and his like are the dumb ***'s.
And as I said, he's now advising McCain, well at least unoffically, seeing as he put his foot in it and had to "stand down".
And yes JonJon, dropping the gold standard was the start of all of this.
justsayin
09-26-2008, 04:27
Wow, lots of politics for a video game board. Don't we have an Chit Chat section for the deep financial/political conversations?
Getting back on topic, without getting deep into the politics, there is no indication that the current financial situation is going to have any impact on the video game market. It MIGHT encourage more people to buy the cheaper console, but that is generally the trend for the casual market regardless of financial conditions. Most people aren't being impacted enough in their day to day life to make them skip out on a console if they have decided that they are going to buy one. At $200 dollars it’s easy for people to say “It’s cheap entertainment, and I have to have something to do since I won’t be doing X”. Most people still have jobs, make at least as much as they did last year, and haven't had huge increases in the cost of living. Food and fuel are more expensive, but only moderately more that they were. Americans still pay a lot less for these things than most of the world. We are just too spoiled to realize how good we have it, and like to complain a lot at even the thought that we might have to curb our spending.
What I see happening is that the economy will get worse, but we won't the full afect of it for a while. IMO, people are going to buy things with credit cards and help things out for a brief time, but when the bills start coming due it will all fall apart. When it starts falling, I fear it is going to come crashing down.
elfonzerio
09-26-2008, 05:35
Sometimes america gets what it deserves, other times, the world gets caught in the corssfire.
And what exactly does America deserve? Did it deserve having two sky scrapers destroyed killing thousands? Please elaborate on this cause I don't understand how such a cold statement can be made.
One-Shot
09-26-2008, 05:46
Actually we're not in a recession as prices are increasing, not decreasing. There is also continued economic growth which confirms no recession.
Whaaaaaa? Someone who knows what a recession actually is instead of throwing the word around with no education on it? Mind blown.
Plazaskater
09-26-2008, 06:17
The USA is one giant conspiracy. And the American people are either too stupid or too lazy to separate the bull **** from the truth, and the fact from the fiction.
Here's a tip, stop watching TV and start reading the Internet.
you'll probably find more truth on tv then on the internet.
Linkedscorpion
09-26-2008, 06:21
a price drop is the perfect reason to buy a 360 during recession. people have their hearts set on buying a console
now is the time when people REALLY REALLY REALLY look at price more than performance
And what exactly does America deserve? Did it deserve having two sky scrapers destroyed killing thousands? Please elaborate on this cause I don't understand how such a cold statement can be made.
What? Uhh I wasn't even talking about that.
I was talking about the congress that repealed the Glass-Steagall Act.
And I'm also referring to the up and coming elections.
There was significant amount of non-Americans that died on September 11. Just for your future reference. It affected us all.
kokoriet
09-26-2008, 09:05
Money doesn't just disappear you know. It merely transfers.
Tell that to the IRS :sleep: Or the countless billions spent on the war in Iraq, that can't be accounted for.
Oh, and there is a very easy way to make money disappear. Fire =O
Husker86
09-26-2008, 09:16
Tell that to the IRS :sleep: Or the countless billions spent on the war in Iraq, that can't be accounted for.
Oh, and there is a very easy way to make money disappear. Fire =O
You can't burn Bank accounts! Well...I guess you could, but I assume it would be a lot harder than throwing paper money into a fire :p
Thought we might as well keep this off topic til it gets locked, the thread is doomed.
kokoriet
09-26-2008, 09:37
You can't burn Bank accounts! Well...I guess you could, but I assume it would be a lot harder than throwing paper money into a fire :p
Thought we might as well keep this off topic til it gets locked, the thread is doomed.
They managed to do it in Die Hard 3 =O
..
Well, almost. But they definitely did it in Die Hard 4, minus the burning part :P
...
Oh my god, I just realized, if they HAD burned the money in Die Hard 4 we'd have the perfect setup for a new Mad Max style trilogy! With Bruce Willis! In a world where everything has gone bat**** insane, where people fight for food, fuel and sex, one man - a former cop - will be in the wrong place at the right time. And he will have one thing to say; "yippie ki yay ************!"
Keeping things off-topic is fun D:
Now that the effects of this recession are starting to ripple towards the gaming world and Sony has cut its profit forecast by 57% based on slumping sales of that "expensive" PS3 what types of sales slumps could the Xbox360 face also?
Now that the effects of this recession are starting to ripple towards the gaming world and Sony has cut its profit forecast by 57% based on slumping sales of that "expensive" PS3 what types of sales slumps could the Xbox360 face also?
Due to the low prices that MS has now for there consoles they might not have sales slumps as they could take sales away from Sony.
MS are in a much better position than Sony in a recession.
Due to the low prices that MS has now for there consoles they might not have sales slumps as they could take sales away from Sony.
MS are in a much better position than Sony in a recession.
I think your right... conside rthis form totday...
Coinciding with the news that the PS3 is hitting rock-bottom sales figures in Japan, Sony has announced it is cutting its profit forecast by an alarming 57%.
While Sony had previously estimated a ¥470b profit for the period, the firm has made a shocking revision to that figure to account for the strong Yen that is cutting into Japan’s export business. Sony's revised operating profit estimates relate to the full year ending in March 2009.
Sony said in a statement that it now expects an operating profit of ¥200b. Sony shares dropped 6.3% in Tokyo ahead of the announcement.
Now the financials are supposed to be reveled on the 29th, which means Sony already know whats in it. It clearly was not a good 1/4 for the company.
I think your right... conside rthis form totday...
Now the financials are supposed to be reveled on the 29th, which means Sony already know whats in it. It clearly was not a good 1/4 for the company.
You are going to love Fable2
The Entertainment industry wont be heavily effected by it, People will still go out and spend hundereds of pounds/dollars on products. Overall the recession will effect everybody and basically everything but when it comes to entertainment it wont be much. Nothing to major anyway.
Looking at the way things went down, It would seem that someone had a inside scoop on things to come, regarding the economy. First we have a significant price drop on all Xbox360 SKUs.
Man, I live in Australia and I knew the US was heading for a recession even when all the news journalists and business analysts were lying through their anus' telling people the economy is fine. What inside scoop did I have? Logic?
It was inevitable.
DayWalker
10-23-2008, 22:32
if there is a hit... the PS3 is gonna feel the brunt of it.
im glad someone beat me to it. looks like a lot of people dont even know what a recession is.
So just what do you guys call this. Everyone else seems to think we are in a recession?
TwentyThree
10-23-2008, 22:44
yeah i wouldnt doubt it DayWalker... for being the most expensive console in the market it will take a good hit on its sells.. but a lot of people are adjusting, driving less, spending less, saving more, so unless they are outta of a job i dont think they will hold back with the spending during this holaday season.
DayWalker
10-23-2008, 22:52
Hang on... the DOW drops 50% in a month...
we're currently going through what experts call "the biggest financial crisis since the Great Dpression"
Alan Greenspan (sp?) calls it a "once in a century crisis" today
And people are still arguing that we're not in a recession???