The elephant in the room: PS3 price cut timing strategy (three scenarios)

[Dodece]

I honestly am disappointed by the prospect that most posters are unaware of the concept of affordability, and how that relates to the economic classes. Microsoft is tapping into a economic class that Sony cannot even make an appeal to. So Microsoft is appealing to the same economic group as Sony on one hand, and serving another group on the other hand that Sony cannot make a pitch to.

The result is even with the price cut. The PS3 is no longer a new product it is an old product now. This is a product with a lot of stigma, and it is not very popular. So while it could fight tooth and nail with one had. Sony still cannot touch the other hand. It will be very hard in the new year for Sony to beat Microsoft. Unless Japan pulls through for Sony, and sales are weaker globally.

That said if Sony is going to consider a price cut. I think it should be one cut late in the year. Possibly as late as the second half of October, or even the first half of November. That gives them a chance to obtain some profitability, and it assures that the cut can be larger. I say Sony should work diligently towards a $150 price cut.

Right now Microsoft and Sony have basically picked the upper price brackets clean. However Sony is still mired up in the famine. While Microsoft has worked its way into the cheap feast. Sony doesn't need just a comparative difference. They need to get down to the low end consumers. That is Microsoft's strength now, and its utterly unmolested by Sony.