NJ5 on 17 January 2009
So for example if Sony cut the price by $50 and the system costs $500 to make, boosting sales from 200k to 250k, they'll lose an additional $17.5 million per week or almost a billion dollars per year due to cutting the price.
If the price cut is $100 and it boosts sales from 200k to 300k the cost is $40 million per week or $2 billion a year.
Of course, added software sales will take part of this impact away, but those numbers are eye opening. There are also cost reductions during the year, but holiday sales boosts also take at least part of those savings away.
My Mario Kart Wii friend code: 2707-1866-0957
