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papflesje said:
Interesting read, Squillie.

Personally, if I were sony, I'd just go for "50$ drop" and then set up a healthy quotum for the coming year. Add in what they expect to gain, set aside surplus profit (aside from the one they expect anyway) and use that surplus to acquire some exclusivity or some bundling here and there where they know it would work (easiest fix: Championship manager in UK, Tomb Raider in UK, Madden in US).

A simple price cut may bring them back a bit, but they need to step up the aggression levels as well.


MS on the other (as you said) can just lay back and counterpunch.

The possibilities for a price war, really kinda make a $50 price cut the most viable strategy like I wrote above. Its not going to give Sony 2nd place, but it will let them keep close to Microsoft and prevent them from walking away with it and still gives them a chance to be profitable.

 



Tease.