360 price cuts might be needed to combat "stagnant demand"

[blazinhead89]

ManusJustus said:

Skeeuk said:

im begining to wonder on why microsoft is choosing to lower the price of its console running into 2008, when facts tell us thats its much cheaper than ps3 anyway!

 

Cosumers weigh cost and benefit when making decisions.  If a $400 PS3 has more demand than a $300 XBox 360, its because more consumers see a better benefit to cost ratio with the PS# (be it brand, blueray, games, etc.)

By lowering the price of Microsofts' console its gives XBox 360 a better cost benefit analysis in the eyes of the consumer.

Think about it this way, would you pick a XBox 360 up for $300? What about $200, what about $100, what about $50?  See, by lowering the price you make your product look more attractive, being cheaper than the competitor doesnt mean that pricing doesnt matter anymore.

Same for PS3 aswell. IF demand for $400 PS3 >>>>>>>> demand for $300 360, then demand for $300 PS3 >>>>>>>>>>>>>>>>> $200 360