Why the 360 price cuts won"t hurt the ps3!

[danielhiru]

chenguo4 said:

I put this up in another thread, but I think it's much more relevant here, so I'll copy/paste it (with edits) here:

 

MS's goal for the $199 Arcade is to fight the PS3. It will have an effect, but much less than people think.

Consumers shop by price. Therefore the $199 Arcade is much more in competition with a similarly priced and much more popular console: the $250 Wii. The Arcade will have much more appeal to casuals than the hardcore (read: no hard drive), and the casual market will overwhelmingly choose the Wii, should they find it.

Consider that the hardcore demographic will most likely want a console that's not as gimped as the Arcade, they'd essentially be choosing between the higher 360s and the PS3.

The 60GB 360 has been selling at $299 for a month now, and it's not really helping MS beat the PS3. The Elite is at the same price as the PS3, so it's not gonna help much.

 

So basically:

High price: PS3 will sell much better than 360.

Low price: Wii will sell much better than 360.

The 360 will have a foot in each market, but underwhelmingly so, and I think that even if you add it up it wont amount to enough to overcome the PS3 for more than a couple of weeks.

I aprove of this message.