phisheep on 01 January 2009
Short-term, price cuts generate sales. That's why shops have sales.
Long-term, they eat into profits. That's why shops don't have sales *all* the time. At least most shops don't, and those that do have a downmarket perception.
Of course, in recession, low price can be an advantage - but consoles are still luxury items and I'm suggesting that the MS cut may harm its perception.
As to software, sure MS has more. I'm less certain that it has more that people actually want. For example, Sony seems to have a better grip than MS on expanded-market games.
I don't own either, so I'm not trying to take sides here, just to point out that Sony doesn't necessarily have the price problem that a lot of people seem to think it has.
