| Slimebeast said: Do people seriously believe Sony will not cut the price of the PS3 by Spring?? |
I would have to say that is even money, at best. Not surprised either way. Each way has reasons. It is likely that Sony is leaning far more on being profitable, instead of marketshare, which means less likely a price cut. They are far more apt to do bundles. First comes bundles, then the bundles go away, and they cut the price. This way they can release a new system on shelves, while making the older systems viable. Price cuts are messy, unless you support the supply chain with givebacks.
The way Microsoft has it set up, all they need to do is stop the bundle and drop the price. This counters what Sony is doing.
Talk of long-term strategy is fine, IF you aren't losing money. The moment money is being lost, it goes into "become profitable NOW" mode. If Sony views the PS3 as a "Mission Accomplished" in that it drove out HDDVD, then it would be less apt to end up cutting price, viewing the PS3 more as a top-end Blu-Ray player than a console trying to compete with the Wii and 360. In that, they then don't cut prices. The rationalize it, saying they don't want to canabalize sales of their dedicated Blu-Ray players, and they view their math as being the cost of a game system PLUS the cost of a Blu-Ray player. They say they have an exclusive lineup that is great, and have enough third party support. They position themselves as the ultimate home entertainment solution with the PS3, and feel they don't need to cut price in that market. They also believe the PS3 will have a 10 year shelf life, so why cut now?
