amirnetz said:
The price cut is not an option right now. They just cannot afford it. They are already losing $1B/year in their gaming division and $100 price cut on 10M consoles will exactlu double that loss. Since the company made only $20M in profit in the last quarter I doubt it will be willing to take a x100 of that in loses just for one product. The PS3 alone can sink the whole company. The PS3 will need to become profitable without a price cut for the next 10-12 months. As long as it is profitable, Sony can stay in the market even if it is just for playing for 3rd place. With profitability they can justify making a PS4 and give it another go. If they continue to lose money then they will have to do the "industry exit". They have no more than 12 months to go being either profitable or cutting down the loses and exiting the market.
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You are probably right about the price cut. But there is no way they have 12 months to think about this. No way. Decisions need to be made...now.
Let me put it this way: you don't want a price cut because it will cost $1B. but you are willing to wait around a year, which by your own math, also will cost a $1b?
if the world economy hadn't just collapsed, then they might have a year. But it did. So they don't have a year. They have to take a 1B risk by cutting the price, or get the heck out. And it will happen in early spring.
personally I'll wait for the firesale :)
Trying to convince me the Wii is a real adult game machine 'if you play it right' is like trying to convince me Tofu tastes great 'if you just cook it right'