At what point do price drops become desperation and a joke?

[jjseth]

llewdebkram said:

PS3 and Xbox 360 both have had or are about to have price drops of some sort.

If Microsoft lowered the price of an XBox360 to $10 and therefore took a huge lead in the console wars numbers would it be a victory?

At what point does it become a desprate measure and a joke?

With most products I'm sure 'when it loses money' would be the answer.

 OMG!  The mercedes dealer here in town had a price drop... Oh wait, they are trying to clear inventory?

 Every product has a price drop eventually and only a rare exception would it not.  Name one console that was successful that never had a price drop?  When the Wii cuts their price can I call that a desperation move or a joke?

 Then again, the joke is on Wii owners who are paying $250 for a souped up $50 gamecube with a motion controller that costs maybe $50.

 We are talking about jokes?  Right?   Anyone?

 Me so sorry, but I couldn't help it.