mrstickball on 13 January 2009
Alby - How does Sony have the advantage to make more cuts?
Price wise, yes, because their product is $400 currently for the base model, but:
Microsoft, as a company makes money. Sony does not (supposedly as of this financial statement going out soon)
The Xbox 360 makes money on each console sold. The PS3 either does not, or is right at the threshold (therefore, Sony would lose more money on a drop than MS would)
Those 2 reasons show that Sony doesn't have an advantage on price cuts - They may see more gains from a $100 price cut than MS would with a $50 cut...However, it'd cost Sony far more dearly as they'd begin to lose $100 more per console, whereas MS may not even go into the red (per console sold).
Back from the dead, I'm afraid.
