A $50 pricecut will bring the PS3 sales close to the 360 sales. A $100 cut will have the PS3 outsell the 360 at a similar rate that it did in the first half of 2008. I believe that MS will counter any PS3 pricedrops on their Pro and Elite models, but those drops will have minimal impact on 360 sales. A bulk of the 360 sales are Arcade units at $199, and MS is already losing too much on that price.
The PS3's value proposition compared to the 360:
- A superior 2009 "announced" library.
- Free online gaming.
- Blu-ray movie player.
There are many other features that can be touted for either console, but if I was Sony these would be the points I would emphasize.
The PS3 has had 1 $100 price drop. It launched with a 20Gig at $499 and a 60Gig at $599. The 20 Gig was redesigned with less features and launched as the current 40 Gig without BC at $399. The 360 has actually seen more price-cuts than the PS3.
Thanks for the input, Jeff.
