Rumors Mounting Over $399 40GiB PS3

[Dodece]

I think since Microsoft brought it up that they would probably have a plan to counter such a price reduction. Based on their last price reduction it was effectively the same price reduction per percentage that Sony unveiled at E3 which was a 16% price reduction. Were this rumor born out that would be a 20% price reduction on the base model. So if Microsoft follows the pattern their machines would drop by an equal margin. Which would make the Pro a $280 machine, and the core would drop probably down to to $230.

Microsoft made a statement with their price reduction. That statement was they would match any Sony price cuts percentage wise. So if you believe this rumor you must also believe that Microsoft is going to match suit. Given the respective financial positions Microsoft can afford to eat the loss far more easily that can Sony.

I would rather think the Xbox 360 would do far better then the PS3 with that lower price range then a PS3 would do at a four hundred dollar price range. Microsoft would firmly move into Nintendo's market at that point. Which is obviously a far larger market. With more potential consumers.

True Sony might double sales at a twenty percent reduction in price, but Microsoft might quadruple their sales at the same percent of reduction. They definitely have the lineup to sell consumers on. This is what some posters are ignoring we are talking about a price war here. Sony selling a million units is good for Sony. Microsoft selling four million units in the same time would be very bad for Sony. A perfect catch 22.

The price considerations do not take place in a vacuum. This is a cause and effect relationship between the two. Hell between all three if Sony gets Microsoft to undercut the Wii on price. The faster Microsoft drops the price the worse it will be for Sony. While I think it seems like great news to Sony boosters. Chances are it would be better news for Microsoft and Nintendo boosters.

I also find it hard to imagine Sony dropping the price of the PS2. There comes a time when you cannot reduce the price any more on any technology. Further more this is where Sony is getting gravy. Would there be any viable reason to reduce the price. The machine is not in any race, and is effectively alone in its market. So there is no pressure. Especially if you believe the price drop this is where Sony would make back some of the losses.