NJ5 said:
Darc Requiem said:
NJ5 said:
TheSource said:
The recession already hit the PS3 first...
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Are we sure about that? The fact that 360's price cut happened at the same time makes it hard to tell.
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I agree with TheSource. The faltering economy hit Sony two fold. It made a $400 PS3 a more difficult product to sell. In addition, it caused the weakening of the Euro and the Dollar which made reducing the price on the PS3 financial suicide. Basically the economy made it hard for Sony to sell the PS3 at its current price and made reducing the price in response a financial impossibility. I think that qualifies as the recession hitting the PS3 first.
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Of course it caused trouble at Sony, that's a fact. What I'm not so sure about is the impact of the 360 price cut. When you have two things happening at the same time, it's hard to distinguish where the effects come from.
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I'm not discounting the effects of the 360 price cut. It certainly had a great effect on the 360's sales. However the recession prevented Sony from responding to that cut. If the Yen's value versus the Dollar/Euro was typical. Sony's profit margins would have been much higher and it would have allowed them to cut the PS3's price in response to the 360 price cut.
