Darth Tigris on 01 January 2009
| phisheep said: 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. |
Huh???
I don't understand this mindset. The 360 was released in November of 2005 at prices of $299/399. In September of 2008, almost 3 years later, it has the prices of $199/299 with both having added value over the launch SKU's. That's $100 in 3 years. The much more successful PS2 did not go that long before having a $100 price cut. So why is it that Microsoft's longer paced price cutting strategy harms its perception?
