Price cuts are not designed to increase sales but to combat slowing sales. Overstocked is a likely scenario given the timing of announcement.
They're not pulling it out of their asses either. It is a brilliant strategy to also make it look like their live subscriptions are increasing. Remember this is only a limited time coupon. http://content.microsoftstore.com/store/xblive2yr-offer/
Use your mafia head. Why would MS offer this deal only for a limited time, only as a coupon, and only at MS stores. Apparently no other retailer ordered too much stock (or they would've dropped price), and no tracking company knows where the other shipments are. MS made it a goal to be #1 last year, shipped. Do you think, possibly, in any way, they might have over-ordered their own product in order to beat out the competition in shipments, and now have too much stock and are subsequently "dropping" the price?
Which stores were offering these 199$ ps3s? I was only aware of gamestop. There was some 199$ during Christmas, but that's to be expected. I'm talkign about recently.
Now now, that's just going way too much into detail, so you're saying that MS is currently sitting on about ~1M xbox's in their warehouses because they purposely overshipped just to appear better in their financial results? Don't you think that's a bit far fetched? After all this is a company that was not prepared to sacrifice profits for the last 3 years and didn't bother announcing an official price cut, if anyone Sony would be capable of doing something like that, with the numerous price cuts and increased marketing effort that has been happening the last few years, pushing much harder in an attempt to achieve higher shipments than the competition. It's a far fetched theory that unfortunately doesn't hold much weight as it would be out of character.
Amazon pricematched them I believe, in UK sainsbury's, tesco, morrison's etc often have sales on PS3 too, about £159 - like £30 or so under RRP.
It could be a combination of reasons. Like for instance, MS loses money by selling consoles to retailers instead of selling consoles themselves. I don't think they overstocked by 1M, but several hundred thousand is very reasonable, and perhaps this was planned all along, so they purposely over produced and overshipped this past quarter. Who knows the exact details? What we do know is the facts.
-fact1: MS shipped numbers are higher than any sales tracking firm, ANY
-fact2: Nobody knows where these consoles are
-fact3: No retailer has dropped price, which would indicate overstock
-fact4: MS is having a psuedo price drop
-fact5: It is "for a limited time"