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HappySqurriel said:

Well, year over year PS3 sales seem to be down about 10% in 2009 and it doesn't have the benefit of having Grand Theft Auto 4 and Metal Gear Solid 4 being released later this year ...

About the only way I could se their estimate comming true is if they reduced the price by $100 fairly early in the year and had some unannounced big games to release this year.

An early price cut would almos certainly net a higher overall revenue as the elasticity is higher as the price approaches the ideal for maximising volume. Therefore an early price cut of that magnitude would have larger effects.

 



Tease.