nightsurge said:
I knew you still weren't grasping this. We are just talking about America where the 360 in just this one region more than doubles the PS3 total and is 9 million ahead. As far as another 360 price cut, of course they can afford it. The losses could be tied to anything and weren't even Xbox related. After the success the 360 has had at beating Sony's PS3 (MS's goal) it is inevitable that there will be another Xbox. Another Playstation is looking questionable though. MS already stated that if Sony cuts the price, they are ready for a counter action. Unfortunately the $200 PS3 will not be around until 2012. The last legs of this generation and there will never be anything that can build up enough momentum for it to pass the 360 in America. Again, this is America we are talking about, not world wide. For the PS3 to outsell the 360 in America it would have to double the 360's sales for the next 5 years. But if the new consoles are released in 2012, that is only 3 years which means even if the PS3 gets PS2 like sales and doubles the 360's sales for the next 3 years it will still be many millions behind and will be the first thing discontinued from retail space. Sorry to tell you this, but Sony does not control how long a product stays on the market. The consumers and retailers do. If the next wave of consoles releases the retail space will shift to Wii 2, Xbox Next, and Wii, with maybe a small section left for the 360. There will not be enough space to support the last place console, aka the PS3. Do you even know what market saturation means? It's when there are basically no more potential customers to buy your product. How can the PS3 have a huge PS2 like sales pace if the market is saturated?
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In economics, "market saturation" is a term used to describe a situation in which a product has become diffused(distributed) within a market the actual level of saturation can depend on consumer purchasing power; as well as competition, prices, and technology.
And now after having stated for u the exact description above now lets take into account the first factor
Competition: PS3 is still competing close and no where near failure. All competitors posted losses for current fiscal year.
Now Prices: it's still selling close to 360's at double it's price. Now that's an imminent threat to 360.
Technology: Can MGS4 ever come on 360? The Answer to the question defines this factor. Now I don't need to mention about RSX, Cell thing , the BR stuff and format war.. which means PS3 still has got the potential to carry the console way ahead into future.
So in America this principle can't be defied, once 3rd party developers harness the Cell's potential to produce something unique matching high terms of quality..the S/W nos will increase at rapid pace from current 6% decline. H/W sales will slowly rise with current price too. 360 will adhere to bundle schemes to occupy depleting retail space to increase the gap margin. By taking Japan as the perfect example in contrast to as what is in America it will be discontinued their first. And as i mentioned earlier the ps3 price-cut is very much eagerly awaited. It shud occur when Sony keeps managing to slowly increase the sales rate equally across all regions. At that point they can take the retail space by storm with more consumers confident on buying one when price cut of 100$ is announced.
So it's pretty tough days ahead for 360, a counter action can be in the form of bundle schemes or even xbox next...but not until they had drained out the unlikely maximum "profit" out just as they put it. By that time MS wud've dropped the idea of a new console.
