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

[thetonestarr]

Phrancheyez said:

papflesje said:
Fear?

might just be a good way to say (like squillie said) that they'll match.

even if they didn't match, it might make sony think twice before doing something (considering the possibility that MS drops again, making them lose the momentum of their own price drop). Any second that sony waits, is a second more for MS to sell xbox's to people that are price conscious.

The question now is whether Sony is actually intimidated or whether they are just going "meh... whatever".

 

Match?  How?  Since we all expect a $100 price cut..MS cannot drop their price $100 again.  That's just fact.  They also can't 'match' the price, because they're already cheaper, and with a price cut will be the same price - and cheaper.  So what are they matching?  Yes, it's fear.  If you're priced so much below your competitors already, why do you have to plan for a price cut if they still need a price cut to bring their low-end model down to the same price as your high-end model?  

Yes, I say it's fear.

Silly you. The match won't be a dollar amount; it'll be a percentage.

 

$100 off of $400 is a 25% drop.

With the 360 being available at $200, to match the same percentage change, they'd drop $50, rather than $100.

 

A $150 Xbox 360 would be a very competitive price-point.

And from here, they'd drop each other SKU by $50 as well, most likely. Not only would this compete fantastically against the PS3, but it would put two 360 models as cheap as (or cheaper than) the Wii.