Convinced - $399 PS3 coming in October

[Nidan]

davygee said:

The thing is, can MS afford to make another pricecut?

Don't forget all the problems with the RROD and scratched discs, this IS costing MS a fortune and MS want to break even and even post profits next year...which I seriously doubt they will be able to do unless they keep their new price level for the better part of another year. Also don't forget all the extra millions that MS throw around for buying up these exclulsive agreements (eg. $50m for GTAIV exclusive content only). All this cost is in the big pot.

Also, as you have mentioned. MS can smell the blood of Sony and will stop at virtually nothing to get the better of them. But, if they do make more huge losses to make up more ground on Sony and the Playstation brand and it doesn't pay off (ie. they don't come in 2nd at least this generation), then they could be out the home console race from the next generation onwards.

 

MS has already taken a hit (in there share price) and paid the provision for the RROD, so this has all been budgeted.

I wouldn’t be surprised if MS has a price reduction planned for after Christmas, or if needed before. I would suggest that before Christmas they will rely on the holiday package