What could MS do to counter the PS3 price cut?

[scottie]

"By your above quote, I don't believe you do realize how the Wii marketshare affects the potential of the other consoles."

Wii market share will be lower than the PS2's market share, and the industry will have grown. I don't see why the PS3 could not start making a decent profit


"So you honestly think that Microsofts goal is to crush Sony? This is business not childs in a sandbox. Microsoft goal this generation is to establish them as a force in the console industry and make money on it./Console sales is not like playing HALO/BRAWL/RESISTANCE and screaming "I win! I poo'ed all over you", it is a business."

Yes, Microsoft reps have stated that they were attempting to pull down Sony's dominance of the console market. Get your Google on before you hit that reply button. Obviously money is the long term aim, but it's more complicated than you are both believing. Consoles are starting to threaten the PC - PS3 and Wii can both browse the net as an example. MS does not want another competitor to windows, and that is the main reason that they established the xbox line (and Zune was an attempt to stop Ipod owners buying Imacs)

And yes, MS do plan to make money off the Xbox, they actally are at the moment, and I believe will continue to do for the rest of the generation. But they will continue to price cut as aggressively as they can, to maximum future profits.