Why a $299 ps3 could mean Game Over!

[dbot]

welshbloke said:

D-FENS said:
Any price cut by Sony could be matched by both competitors. Nintendo has plenty of profitability to trim a bit if their staggering sales [outside Japan] ever slow down. Microsoft, by all accounts, is most likely profitable, breaking even at worst on the 360. They have both the cash reserves, and the stomach, to counter any price cut.


Sony is very badly positioned for a price war and they know it. What Sony fans need to worry about right now is MS turning the knife and dropping their price before Sony, forcing them to either lose more market share, or start taking big hardware loses again.

 

What that man said ^

Nintendo would not need to respond to a Sony pricecut.  The MS price cut had no effect on Wii sales.  That race is over.

I would dispute that MS is breaking even on their hardware sales, but my evidence is probably as flimsy as yours.

The investor/employee tolerance for a price war within MS is probably pretty low.  Both groups want to see MS dump under performing divisions in an effort to become profitable.  The fact that the EDD has lost 20 billion dollars since 2005 has become something of a joke among Microsoft's employees.

Again, you seem to be confusing marketshare with success.  I believe that Sony would be better off finishing third this generation as a profitable businesss, than finishing second with continued losses.  Microsoft seems to have taken the other approach.