Would a PS3 price cut do it?

[stof]

Stromprophet said: stof said: Well I think we can all agree that when Sony eventually does cut the price for the PS3, the effects will be immediate, in that the 360 and Wii will match or exceed any cut Sony can offer. There's no evidence for that. Again, where were you guys all these years ago? May 2002. PS2 Price cuts, could have price cut more if they wanted to. Xbox has to price cut and this was 6 months after launch. The Xbox was already selling for a loss at 300 dollars, manufacturing was more expensive, and not coming down yet in the young life cycle. Just cause Xbox price cut 100 bucks Sony didn't respond by going even lower, and Niether did Nintendo, though they both could have. Even the PS2 now still costs around 120 bucks in parts. Just because you've been around a long time doesn't mean the cost of parts goes to 0. Nintendo actually has less room to price cut proportionally to the other 2 systems. How much does a GC cost? 99 bucks? Only half of the original cost. The fact of the matter is the systems usually only cut price about 1/2 to 2/3 of the original cost over the whole life cycle of the product. Think about it. It doesn't make sense as a business to lower your price when you can continue to sell good levels. Which both Nintendo and 360 are right now. In all the console wars there have been price cuts, but they usually respond to timing and not for price wars. The only exceptions are when there is no choice. i.e. May 2002 Xbox price cuts to 200 bucks cause of PS2 price cut. They simply did not have a choice because they were already dominated and at 300 bucks to 200 it would have been even worse. You think Nintendo is going to cut to 1/2 in the first 6 months of life when 360 price drops? 360 will drop by the usual. 100 dollars, that's par for the course. PS3 will drop 100, and I bet Wii probably drops 50. Then the next price cut will occur with normal business cycle.

I agree with you. My main point was that it'll be quite some time before the PS3 sees a price cut, and with the way the other two systems are doing, they can comfortably hold on to a price cut until it's needed to counter Sony's.