Sony have an advantage on price cuts simply because the console is more expensive... to copy and paste what I've written in other posts:
"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."
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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."
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