misterd on 26 December 2008
This is the bind Sony is in:
a) Lower price by $100, and add more to their losses, BUT slow or reverse the drop in market share.
b) Keep the price, start turning a profit, but watch your base disappear.
Neither is a good choice. A compromise (like a $50 cut) carries risk in that it could result in the worst of both options - cut into revenue without boosting market share.
I think Sony needs to look to the third parties. If it appears that 3P's are about to jump ship, then they need to offer them some encouragment by cutting price. So long as the 3Ps stay aboard, the console will remain viable for whenever the price cut does come.
