Microsoft working on Price Competition for "PS3 Spring Price Cut"

[SamuelRSmith]

chaospluto said:

SamuelRSmith said:
People do realise that there is a diminishing effect with price cuts, don't they?

Please realise that a drop from £200 to £150 has a much greater effect than the drop from £150 to £100. There is a reason as to why the PS2 is still £100.

Even if Microsoft does match Sony in price cuts (which I significantly doubt), the effect in demand for the Xbox 360 will not be as great as the effect for the PS3.

True, in the sense that people will start to wonder why the hell MS is dropping the price so drastically.  In turn making people think there is something wrong with 360, which means less people will be interested in the 360.

Atleast I think that is where your going with this.

 

 

 No, what I'm saying is that the amount of people who found "Product A" too expensive at £200, and would pick it up for £150 is LESS than the amount of people who find £150 too expensive, and would wait 'till it dropped to £100.

If a box of matches dropped in price from 30p to 15p would sales explode? No, because the product is already really cheap.