How would you REALISTICALLY try to combat the 360's recent WW price cut? (Please no OMG I'd drop it to $199 with 2 controllers and 3 games!!!!!!!!!!!)
This is what I would have to consider:
1) PS3 is losing money on HW but is profitable, dropping the price would put the whole PS3 project back on the red.
2) PS2 and PSP sales will probably be affected by this. Sony is making $ on the HW for both and if I had to guess I'd say 30-50 on each. The profits on games and accessories must not be very high though especially on the PSP.
So this is what I would do without running my company down the crapper.
1) Drop the PS2 price to $99 WW and have a bundle with 1 game and a controller or 2 games for 130. I'd probably bundle Singstar or Buzz in the US to create brand recognition.
2) Drop the PSP standalone to $149 and the bundle to $179.
3) Bundle the 80GB with a 1st party game like Ratchet or Warhawk, maybe an extra controller. LE bundles of R2 and LBP, and the 160GB ships with an extra controller and an extra game (Probably Motorstorm 2)
Of course I could leave everything as is and cut the PS3 price by $50 which would still be way more expensive than the 360 so I'd probably wait until I can comfortably cut the price to $299 without breaking the bank. Either way I'd have a lot of sleepless nights and well I'd accept the fact that only a miracle would get the PS3 to beat the 360 this Holiday season, so as long as I was ultimately profitable, and ideally without losing too much market share, then I'd be ok.
