To to become a price leader, your price should always follow your product’s value. Find out how you can communnicate this through the value propositions listed on your product page.
The gaming industry is perhaps the best example of a hyper-competitive business environment. Seriously, there is a reason the phrase “console wars” is constantly tossed around. Sony Computer Entertainment, Microsoft Studios, and Nintendo continually slug it out year-after-year for market share via innovative systems, next generation graphics, rights to popular games, and the list goes on. This year, the highly anticipated releases of both the Playstation 4 and the Xbox One will once again pit Sony and Microsoft against one another in a head-to-head competition for market dominance.
Both consoles are slated for a pre-holiday season release to capitalize on the Christmas shopping rush. The Xbox One is expected to be priced at $499, while Sony has announced that the PS4 will only carry a $399 price tag - undercutting it’s foe on price significantly. That doesn’t seem to bother Xbox CMO, Yusuf Mehdi, however. He’s betting that Microsoft has a “much better and more complete value proposition” than the competition, and that differentiating features such as the upgraded Kinect (a motion sensing input device that enables users to interact with an Xbox without a typical game controller) will justify the higher exchange rate.