| slimeattack said: I think that sales of the PS3 will double once it gets to the $299 price point and gets more games like LBP. Nintendo will have to respond somehow (unless they are happy with the sales and profits) so it will be interesting. |
First off $299 is way too high being that over 75% of consoles in the previous generation were sold for $199 or less ...
Beyond that, a lot of people never seem to consider how price reductions are seen by the public in general. I was talking to someone in marketing about this the other day (related to something different) and one of the biggest problems with reducing the price of a product (in particular a product people perceived to be struggling) is that people associate price reductions to failing companies and undesireable services.
Imagine you see a car company release a $60,000 car and for the first year you hear about how insanely unpopular this car is and how much money the car company is losing. In the next year the car company decides to scale back some of the features and releases the new 'Improved' model at $40,000 and you hear that the car is selling somewhat better, but the car company as a whole continues to struggle. When the price is reduced to $30,000 how likely are you to buy that car? What about when it hits $20,000?
