Understanding the market

[Final-Fan]

HappySqurriel said:

Final-Fan said:

HappySqurriel said:

endimion said:

Not really, the Gamecube dropped 1/4 of its price and the XBox dropped 1/3 of its price in the first 9 months; the PS2 dropped 1/3 of its price in the first 18 months. There is simply NO REASON (except incompetence) that Microsoft can only drop its console price by 1/8 after 18 months.

Dropping your consoles price by 1/4 after 12 months and 1/2 (in total) after 30 months is not unreasonable and should be expected.

It's also true that the Gamecube only took 22 months (in NA) to get to 1/2 of the launch price, but the PS2 took 43 months to do the same.  Xbox took 40 months, even though MS was willing to lose almost unlimited amounts of money in its quest for market share.  

It's the second price cut I object to more than the first.  The Gamecube is obviously the exception to the rule here, ironically so considering that Nintendo is the one that likes to make profit on its hardware.  

As for "no reason", is having to do warranty repair on massively systemic hardware failure good enough for you?  Apparently MS just found out that hardware isn't as easy to "patch" as software is.