360 To Have Outsold PS3 By Half A Million Units In 2009 This Week?

[ramses01]

WereKitten said:

Kenology said:

colonelstubbs said:
MS really turned it around, although if the ps3 really is getting a cut, we could see another great turnaround

Although if MS responds with a price cut of their own, we would see things turned back around.

Not all price cuts are born equal, there's a law of diminishing returns in action.

A price cut from $400 to $300 is more valuable - in sales returns - than one from $300 to $200. And under $200 you will not gain much sales at all because you're in the "comfort zone" already for what the public percieves at this point as the value of a console.

 

 

Actually, the above is incorrect.  It is quite possible that 199 to 149 could have as big or bigger impact than 279 to 199.  Even 199 to 179 may have as big an impact.  I am not that sure how much an impact 400 to 300 will have.  It will obviously have a huge impact the first month or so, but 300 is still too much for the price sensitive customer to pay.

 Diminishing returns will come into play.  However the point at which that happens depends on the inflection point in the price sensitivity demands curve.