What's with the talk of the XBox 360 "almost getting crushed by Sony"?

[786_ali]

PalmiNio said:
Granted that the 360 numbers are not great you still have to consider the financial numbers. The PS3 would be great at that price point compared to 360 i the double price meant double the revenue for Sony but since that's far from the case it won’t matter how close the consoles are, the margins is what counts in the end.

Sure, by looking at just the price one can think that Sony is doing good but in terms of money created 360 clearly has the edge while Sony creates profit from PSP and PS2 to cover the losses of PS3.

We also have to face the fact that 360 will always be cheaper. Just because PS3 is at a higher price point and would benefit from a cut doesn’t mean that 360 couldn’t do the same. Clearly MS has a better position with actual margins on 360 by looking at the results so a PS3 pricecut could easily be fought with a new 360 price cut.

Don’t know the price points in the US but currently the price in Euro is 399 Euro. This is 2 years after 499/599 Euro point when introduced.

Looking at 360 we have an arcade on 179 Euro, 3 years after the introduction on 299 Euro. For the pro the price cut is better, from 399 Euro to 239 Euro. Don’t know about all of Europe but in Sweden the Pro is the SKU that pushes the most units today.

So the cheapest machine for 360 have more or less the same price distance since the start and from year 2 year the gap has increased.

That’s why I doubt that a price cut from Sony will change anything in the near future. Firstly due to the fact that they are in bad situation when looking at the margins, a 100 dollar/euro slash would put the console in red again. A 50 dollar/euro slash could easily be countered from MS and we would be back on the track again.

So basically, if the sales compared to the price really mattered then the 360 should have been doomed from start but it hasn’t.

Not saying that Sony is doing bad with PS3 but from a financial view it’s the worst machine out there.

A price cut would be effective because people who have been holding off a ps3 purchase will buy it due to the affordability.