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nightsurge said:


The 360 still has as much as $200 of headroom.  The main unit is the Pro, which is at $300.  By the end of it's lifetime it should be appropriately set at $100.  Thus Microsoft could cut the price to $249 this year with a $179 Arcade model, then next year drop to $149 and $199, then in 2011, drop to $99 and $149, and in 2012 when the next Xbox is launched, it can reduce the 360 to $129 or $99.  The PS3 in 2012 will just barely be reaching the $200 price point.  So really the 360 has all the options in the world where as the 360 doesn't.

Since the PS3 lacks the software sales and lacks the online revenue from subscriptions, it cannot keep taking a $100 loss on the system throughout or the PS3 as a whole will have lost them billions and been completely worthless.

 

 

I was under the assumption that the Arcade is far and away the best selling model or is this false?  Most consumers care about the bottom line value (Let's face it).  Price is the single most important factor in almost any purchase.  I believe consumers as a whole don't care about the technical mumbo jumbo of adding bigger hard drives and doing other minor things. 

I agree that Microsoft will take that approach,  but the only price point that Microsoft has left to generate a good influx of sales is probably the $100 and the $150 price points. 

 

 

And we have no idea how cheap the hardware inside the PS3 will be in 2010, let alone in 2012.  If Blu-Ray adoption starts ramping up further and further.  (Go to your local retail store and you can see that it's only a matter of time till it's going to be a full blown 'must have'. ) You can expect a signifcant decrease in a large cost of the PS3.  Since none of us are in the know,  that's more of a wait and see what happens.  I don't think Sony is in as bad of shape as you are implying.  Obviously, they are in no position to just drop the PS3 to $200 tomorrow,  but I believe you will see a drop to $350 or $300 by the end of the year at the absolute latest.

 

 

Since when does the PS3 lack software sales?  That's news to me?  While they don't get revenue from their service (Like Xbox Live).  Sony does have more first party studios than Microsoft and I would imagine gets a bigger chunk of the pie of these games that sell well. They also have a revenue stream from a variety of sources including their movie downloads, Home, Qore,   Sony still has online games for PC and other outlets (Such as Everquest for example) that still have paid subscription services that go directly into their bank rolls. Sony won't make drastic moves IMHO,  but they are not as poor and unable to do anything as people imply.