Predict the effect of the 360 price drop. Will it be outsell PS3 again?

[Girl Gamer Elite]

NJ5 said:

1- Microsoft has barely cut the price of the 360 since they launched it. Compare that with Sony's huge price drops. And let's face it, neither Microsoft nor Sony are being successful at the lose on hardware/make it up on software thing. My contention is that this is more of a problem for Sony than for Microsoft, due to the situation in the whole company.

2- Yes, they will likely turn a profit, and do you know why? Because they're focusing their strategy on not losing money this year. That means no moneyhats to third parties, and very likely no price cuts, as per their stated strategy to investors.

3- I didn't get that. "promise that they will not cut costs"? Their statement about profitability was regarding PS3 hardware specifically, not the whole company. The company as a whole will always be focused on profitability, obviously.

By the way, take a look at my edited post. You have ignored the very important difference between revenue and profit. Sony has huge revenues because they sell very expensive products, but their profit margins are very low, so they end up generating much lower profits, thus having to be more careful about spending money. That's the fundamental difference between Sony and Microsoft nowadays.

 

Win.