European Xbox 360 Price Cut Confirmed, Detailed; Arcade Unit Now Cheaper Than Wii

by Chris Faylor, Mar 10, 2008 8:20am PDT

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By: 69gooch69 x Show Full Post

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The "grossly unfair" comment makes absolutely no sense whatsoever. Europeans do not get paid in USD. If they did get paid in USD, then of course it would be grossly unfair. Companies price things in different territories primarily based on purchasing power parity, and what they think the market will pay for the product.

If you get paid 40,000 Euros and you pay 249.99 Euros for your Nintendo Wii it is just as "fair" from a purchasing power standpoint to live in the U.S. and get paid 40,000 USD and pay 249.99 USD.

The point I am trying to make is that it is more "fair" to charge that kind of price based on purchasing power parity than to have drastic price differences based on exchange rates alone.

Of course if the product was made in Europe and imported into the U.S. or vise versa, then exchange rates would be looked at much more intensely.

Mar 10, 2008 6:03pm PDT

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The "grossly unfair" comment makes absolutely no sense whatsoever. Europeans do not get paid in USD. If... : 69gooch69
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  By: LemonJoose x Show Full Post
  
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  That makes sense to me. Also, the dollar has been falling in value for some time now (basically the last couple of years), but I think that will change once the economy works itself out and it will start heading back up in value. I think the housing value decline is a healthy development in the long term. Yes, people who took on too much debt (by buying too expensive of a house at the peak of the market, or with home equity loans, etc.) may get burned, but it also means lower housing costs for new home buyers, which is a hugely needed thing.
  
  Mar 10, 2008 9:03pm PDT
  
  That makes sense to me. Also, the dollar has been falling in value for some time now (basically the last... : LemonJoose
- thing is, in real money most Europeans has lower wages and higher taxes, compared to the US. The taxes ar... : BigT

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