Squilliam on 21 November 2008
| perpride said: I agree with dillanor on this one. How come everybody thinks Sony will leave the console race if they come third (serious question no intended fanbotism so please answer). I mean, ninty finished third last time and look at where they sit now. Sony out of the console world would make perpeode sad :(. |
If they don't make a profit and then do a substantial cut like $100 like a lot of people want Microsoft may react by attempting to bury them financially. If they cut the price by $100 and Microsoft follows suit they can rack up even heavier losses and Sony as a whole cannot afford such losses. If Sony drops out of the console race next generation then Microsoft would have achieved their objective and a two horse race is potentially more profitable than a 3 horse race.
Essentially the safest thing for them to do is attempt a profitable third place rather than try to take on Microsoft who have a larger install base and the Live revenue streams and can afford to slash prices.
Tease.
