| Just to keep you guys with your feet on the ground: 1. Console sales don't just increase with pricecuts. Pricecuts are meant to keep the sales at a flat level 2. Price is not the defining factor in console sales 3 Competiting consoles will always be cheaper. 4. Next gen will have started before PS3 can reach the $200 price level 5. Imagine Gamecube @ $99... |
Since you're proly one of the most credible posters here i'll counter argue you then leave.
1. You have to take into consideration the price point of the console and consumer desire for it , right now the PS3 is able to perform well at a high price point therefore there is desire for the PS3 beyond the people that are actualy able to afford it , PS3 sales will almost definetley increase with a price cut if one were to occur now , I can't say whether this will be the case in Xmas 09 or '10 but it's definetley the case now.
2.Not neccaserily maybe most of the time, but when a console is priced incredibly cheap (XBOX 360 and possibly the Wii) or a console is priced incredibly high the customer requires more of an incentive to make the purchase , price point is indeed a significant factor . The PS3 isn't easily affordable by the average person wheras the XBOX 360 is up to 2X easier to afford. To reject that price point wasn't a significant (and even determining factor) in console sales would be foolish , let's see how much the Wii would sell at $600 a piece or the XBOX 360 at $1200 .When price point becomes too high or too low it does become a determining factor.
3.Agreed but like you said earlier price point is not definitive , the customer still requires incentive and the Wii and XBOX 360 may not always offer more of an incentive than the PS3.
4.Next gen starts when the companies decide they want it to.
5.Gamecube has no demand try using something that people actualy want as comparison for example a Ferrari Car or Gucci bag , items which are very price elastic when you reduce their value.
