Entroper on 15 September 2007
| misterd said: I can't see anything that would STOP Sony from slowly cutting prices |
Fixed costs. You can only reduce the price to manufacture by so much.
I don't expect to see the PS3 at $199 in 2010. I expect $499 for this holiday, $399 for 2008, and after that we will almost certainly see smaller cuts. By 2010 we might see the PS3 selling between $249 and $299.
Price cuts are never linear, they always approach an asymptote. If you could really cut the price by the same amount year after year, eventually you'd be paying people to take your console. In general, the amount you can afford to cut the price decreases year after year.
