If I were Sony, my response to the 360 pricecuts would be...

[Million]

JiaJia said:

nordlead said:

Nothing. If I cut prices, then it would be a sign of weakness, and the competitor would know that I don't think my product is worth the asking price.

People should want to work 2 jobs just to play my system

Exactly. Pricing prestige ftw !! Its all about value perceived and the relative prices customers would pay for a high value quality product and at its current price point I'll actually say the PS3 is pretty cheap =]

If you don't cut prices then the competitor increases marketshare , your console becomes irelevant price prestige won't help you much then . The average person would have to make a bit of a stretch to buy 0.5 X  the cost of a PS3 it makes sense to cut the price to increase it's affordability.