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superchunk said:
I would call it a newer lower priced model. When the 80g goes to $500, that is a price drop.

Its like when Ford brought out the escape. Was that a price drop in the Explorer? They are both Fords and SUV's? Nope it was a smaller cheaper model with different features. Same thing here. 40g has no BC and other missing features beyond the simple smaller hard drive.

Now, will this spur sales for PS3? Yes, absolutely. There are plenty of people out there willing to spend $400 vs. $600 for a PS3 and could care less about PS2 playback.

 I think your mixing up your analogies.  We're talking about the PS3, right?  Not the PS3 and the PS2?

 

The true analogy would be to say that Ford released the Explorer XLT+, with every bell and whistle known to man.  Then it did sell.  So THEN they released the Explorer XL with a lower price, followed up by the Explorer L anda  rock bottom price.  The "L" did away with navigation, and DVD player, no leather, no Satelite radio, no automatic transmission.  They are all Explorers, and each subsequent released was a cost cutting measure to move product.  I see no difference between than and a standard price drop.

 

It would be interesting to see what happens if Sony really did bomb the Christmas.   Do you disagree that there is a point at which they reassess?  Would they abandon the whole market ala Sega, or would they release a "3.5" with a $250 price point.  PS3 blue ray wouldn't work, but it would accept the same code or some such via DVD.

 

I don't think they will bomb.  I don't think they are going to do well, but they will do well enough the inch along.

 

Pat E