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TheBigFatJ said:

Since launch, Microsoft and Sony have each cut the price of their console SKUs exactly $100 total in the US.  Sony had to do it only a few months after launch whereas Microsoft was able to wait nearly three full years.  Here is a list of the consoles original prices and their current prices:

 

Sony

60/80GB model - $599 USD -> $499 USD

20/40GB model - $499 USD -> $399 USD

 

Microsoft

Premium 20/60GB model - $399 USD -> $299 USD

Arcade/Core model - $299 USD -> $199 USD

(Elite not introduced at launch)

 

I believe this shows two things:

(1) The public realized the PS3 didn't have the value of a $499/$599 console at launch which is why Sony had to drop the price so aggressively compared to Microsoft

Wrong , the public for the most part couldn't (and still can't) afford a $499/499 console regardless of how much perceived value it had, which is why Sony had to drop the price so aggresivley for an affordable and competetive price point. Eternal lfe for $ 50 trillion earth is excellent value for money but I guarantee you it wouldn't sell alot if at all.

(2) Microsoft has gained very significant mindshare and marketshare over Sony -- ultimately, Microsoft employed more successful strategy than Sony.

As seen in the XBOX 360 selling slower than the PS3 since their respective launches ?

What do you guys think?  Sony seems to be price dropping much more aggressively than Microsoft in the US.  By the time the PS3 is 3 years old, will it have dropped $200?

 

I think it's unfair that you ignore the fact that the PS3 had/has a much higher pricer point than it's closest rival , if they were equaly or similarly priced then I'd understand that a $200 price drop on the cost of a PS3 show'd microsoft succesfullness or new found dominance. Sony will likely never sell the PS3 below the cost of the XBOX 360.