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Rpruett on 31 March 2009
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reask said:
theprof00 said:
reask how does what you say make any sense? The PS2 is very much profitable and it helps support the ps3 indirectly by getting people into the playstation brand and helps it directly by having extra funds available.
PS3 is doing fine and has a huge lineup this year, I mean huge.

If they do drop the price I don't see it going any lower than 350$ and I really doubt they will before ff13 comes out.

 

Maybe I live on a different planet as I just dont get how undermining your new product by announcing a price cut on your older product can help you.

 

And just so you understand that this sort of thing happens all the time.

For example,  I just bought a new Samsung HDTV.  Samsung has cut the prices of all of it's 'older' models to make room for their newer, more expensive models.  Does this undermine their new TVs?   No.  Because the consumers of their newer models of TVs are going to purchase it regardless.  People on more of a budget are not going to go after the newer models for awhile but will gobble up the cheapened 'older' version.

If you went out and bought a car today.  The 09' models are already out and the 10' models will be out very soon.  You would have a much easier time finding a better deal on the 09'  (Which 09'/10'  versions of the car both sticker for the same price).  Why?   The companies want to push their older products out the door.  This isn't to 'undermine' their new 2010 models in anyway.

Software?  Why does Call of Duty 4 still sit on the shelves when Call of Duty 5 is now available?   Doesn't that undermine CoD5? 

Microsoft didn't discontinue the Xbox because they didn't want to undermine the 360. They discontinued the Xbox because it wasn't selling enough to justify producing it anymore.

 

 

There are countless of other examples of this in business.  It makes perfect business sense to do what Sony just did with the PS2. (Just like it makes perfect business sense to do what all these other companies do with their older products).  It helps promote your name and build company loyalty within the consumer.  

I had a great experience with PS1/PS2 overall.  Why wouldn't I have a great one with PS3, I haven't been let down yet?  This was one of the reasons why I made the PS3 purchase that I did.  While loyalty isn't the end all, be all.  Loyalty certainly is a major reason as to why Nintendo has survived the 'lean' years.

In several years, the prices between the 360/PS3 are going to be razor thin.  Sometimes being satisfied with the PS2 and specific PS2/PS3 franchises will be enough of a deciding factor to send you to the PS3 brand (When you decided to upgrade).