Bundles vs. price-drop: value is in the eye of the beholder | The VidZone Network Blog

May 26, 2009

Bundles vs. price-drop: value is in the eye of the beholder

Joystiq posted a leak that Sony’s sending out a new 80GB PS3 bundle exclusively to Best Buy, priced at the same $399.99 and scheduled for availability on June 9, the week following E3. Two years ago, the news of a $100 price drop made waves, but–assuming two relatively recent, non-Greatest Hits games–this bundle effectively the same savings: $100 or so.

The problem why this isn’t gaining any excitement (at least from the snarky, jaded gaming forum-goers) is that, while adding value to the current box, the actual out of pocket cost isn’t decreasing.

Is a penny saved, in this case, a penny earned?

The obvious argument against a bundle strategy is that it won’t be universally appealing because not everyone likes the same kinds of games.

It makes sense for Sony.  Though they’ve been able to streamline manufacturing and drive down costs, they’re still losing money on every box of hardware that leaves the factory.  However, software (especially if it’s Sony-published) is more or less “free.  They’ll “not make” money instead of “lose more” by using the software bundle strategy.

However, all Joe Consumer wants is that leading digit of the price to tick down to a 2. The first digit of an item’s price is a very powerful psychological force and why $299.99 is irrationally more attractive than $300.00, despite a penny’s difference.  Say it out loud. Two-hundred, ninety-nine dollars and ninety-nine cents. Three-hundred dollars.  All you can hear is “two-hundred” versus “three-hundred.”

However, the existence of this new bundle doesn’t preclude the announcement of a price-drop of a non-bundle package.  But if that existed, wouldn’t it have been uploaded to Best Buy’s computers at the same time?  Was it held back to prevent the same leaks that happened at Circuit City? If that’s the case, again, why wasn’t this listing held back as well?

(image credit: AP)

Carl @ 10:03 pm
Filed under: Games,Techniques — Tags: , , , , ,

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