| HappySqurriel said: When you take multiple products and combine them the typical consumer will see the value of that product as the (usual) price of the most expensive product that they're interested in. In order to convince a customer to buy that product they have to see the value in paying that price for your system based on the components they're interested in ... At the moment, most people do not see much value in a Blu-Ray player and as time goes on the price of Blu-Ray players is declining which prevents people from ever seeing much added value from its inclusion. What this means is that Sony needs to justify the $100 (or more, depending on how you measure) price difference between the XBox 360 in order for most consumers to see the value in buying a PS3 over the XBox 360. This is why I would say that Sony has a much more serious value problem than a price problem, because if they reduce the price of the PS3 it is likely that Microsoft will match their price reduction ... this means that they will remain in a similar position and have to demonstrate added value in buying a PS3 over an XBox 360. |
you make a good point.
