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Rpruett on 24 April 2009
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XanderZane said:

That'll only happen if the PS3 drops $100 off their system before the holidays and Microsoft doesn't do a price cut at all.

1) It's highly unlike Sony will drop $100 of any of their PS3 models, as they would literally start to lose millions for the rest of the year.

2) If Sony does a price cut, you can bet that Microsoft will do the same thing. Microsoft is not going to allow Sony to start to gaining ground again.

The XBox 360 will be like $99 by the end of next year and Sony won't be able to touch that price. Then the following year a new Xbox 720 will be announced.

 

1.) Even a 50$ price cut would provide an increase in sales by a large amount.  I don't know the internals of the PS3 production....Do you? 

2.) Why can I bet that?  This hasn't happened yet, what evidence do we have that it would again?  So if Sony slashes 100$ off of the PS3 at Christmas time...Microsoft is going to counter with a $100 360?  I wouldn't be too sure.   Maintaining solid sales at a higher price, gives you a lot more flexibility as you move downward on the price scale.  Microsoft understands this and won't be so quick as to diminish the price of the 360 in the eyes of the consumer.  They (Like they did before) and Sony did before will watch the price drop and it's effect on their sales and drop the price when necessary.

 

 

So let me get this straight.  Sony can't afford to drop the price of the PS3 by 100$ down to 300$  without losing millions upon millions of dollars. Yet Microsoft will be able to drop their 360 down to $100 with no issues?  . 

 

Also you are forgetting one very important thing.  Saturation.  The 360 is selling as well as it's going to sell.  The PS3 still has yet to reach the lower price points that will give it very solid sales.  I would argue that the PS3 has a chance to put up an increase in sales over the previous year in 09'/10'/11' by reaching the  $300 and $200 price points.  Where as the 360 more than likely will start to see a decline in 2010.

 

And let's wait to see when the Xbox 720 or PS4 or Wii 2 are all announced before naming random dates.