If thanks to price cuts they sell more, they lose something in the immediate, but they get cost reductions before too and they sell more games and get more royalties. So it may cost now, but pay in future. Anyway IMHO the issue is that if even at the current price they can reach their sales goal, then a price cut isn't necessary. If cutting prices request rises so much that offer can't meet it, then they waste a price cut and lose money, so in this case a price cut would even backfire. But my initial point starting the thread was that this time MS timed the price cut well enough to leave Sony at least in partial uncertainty longer than they could hope, there is really a very little chance that Sony is really forced to offer price cuts to support sales, but if this should happen (very, very unlikely, even at its lowest PS3 is currently doing better than before last Xmas season, when its 9+ monts of WW sales dominance on XB started), Sony would have to react later than at the optimal time. So while this price cut had quite deceiving effects (last Autumn Halo 3 launch did much better), it has a longer lasting side effect that can at least console MS just a little bit.
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