Could It Be Sony Were Bang On With The 10 Year Plan?

[NJ5]

Those days of MS winning at any cost are over. Look at the job cuts among other things.

Actually what MS's job cuts show is that it's a much more cautious company than Sony. Instead of waiting for major losses, they preemptively reduced costs. It may look bad on a social level, but as far as the corporation goes it could be a wise measure.

If you think MS can just throw money away by continually cutting cost of their console to please their fans and get a second place finish you have no idea how business works.

The important point is that MS's ability to cut prices is not smaller than Sony's. That's pretty obvious when you look at all the combined facts:

1- MS's entertainment division is still profitable even after all its price cuts.
2- MS didn't cut prices as fast as Sony did (they're probably on target to halve 360's price 4 years after launch which hardly looks radical compared to what people are asking from Sony).
3- Sony is much more affected by the recession than MS. In fact a bankruptcy is not impossible if the recession lasts long enough and Sony can't restructure fast enough (they started too late).