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Smashchu2 on 23 May 2009
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greenmedic88 said:
Smashchu2 said:
@greenmedic88: uhhh, where to start
1)The PS3 will not match the PS1 or 2 in any way. Those systems turned a profit and sold over 100million units. The PS3 is struggling to beat the N64. This claim is just plain silly.
2)"Replacement by 2010? No. Announced in 2010? No." How? This isn't an answer.
3)
"But SCE can't afford to lose money on a price drop." Production cost drops are specifically to address this issue, not to simply repackage a previous product in an attempt to extend longevity. Lower production costs, fewer components, overall reduction in size and weight equates to smaller, lighter packaging, reduction in shelf/storage space for inventory, etc. All have the same effect of reducing overall cost to deliver product to the hands of the end consumer.

Good point, but you didn't address the systems stand in the market (no one is). The system is behind and isn't growing. Your claim would only work is the system has more units sold then it actually does.

@txrattlesnake: How you came to that conclusion I will never know. You claim the 360 will be the one to get the boot when it sells less then the PS3, has more million sellers, and is in demand more for consumers. The PS3 is also costing the company an arm and a leg (the 360 was never meant to make money). Look here

http://vgchartz.com/hwcomps.php?cons1=Wii&reg1=All&cons2=PS3&reg2=All&cons3=X360&reg3=All&start=39453&end=39950&weekly=1

Your claims are crazy. The Wii is growing faster then the other two. The PS3 and 360 are growing at the same rate despite the fact the 360 has been out longer. The Wii, from January to May, is doing worse then last year, but coupled with that fact that in 08 it has Brawl, Mario Kart and Wii Fit, and this year, Punch Out, it's doing really well.

Your claims just don't match up with the facts.

Nobody has been claiming the PS3 will move the same number of units as the PS2 or even the PS1 life time sales. That wasn't even the OP which was more along the lines of the PS3 will be out of production within what, a year or two?

As for the claims of seeing a PS4 in 2010 or even an announcement in 2010? Highly improbable. That was the answer. Support for the PS3 hasn't changed for the worse; if anything it's been growing.

Your wrong. I just posted numbers in the OP that said it was incoorect. I posted another chart that shows the same thing. If you beleive this, then prepair to be sorely disapointed.

I thought the production cost reduction and price reduction was self explanatory, but for clarification, dropping the price to $299 opens up a larger tier of consumers who won't pay more than $300 for a game console. $399 just isn't a broad market friendly price for consoles as the last 15-20 years have demonstrated. Drop the price and the sales won't stay the same any more than they did when the price dropped from $499 to $399. The demographics are very different from $499 to $399, and even more so from $399 to $299.

I would hope nobody will be dumbfounded when sales rates take off similarly following a major price reduction, following major production price reductions on the manufacturing and logistics end of distribution.

As IO have mentioned, price drops do not result in long term effects and do not produce long term consoles. The cube was cheaper than the PS2 and it didn't get the boost some people claim. The 360 is cheap then the Wii, and the Wii dominates. The fact that you beleive this despite the evidence points in the other dirrection is mind blowing. Lowering price does not mean you are doing well; it means you are doing crappy and need some way to get out of the hole. It is a sign of desperation. People play price drops off as good things. They are bad things. Let's look at the economics of this.

http://i82.photobucket.com/albums/j263/Smashchu/Demand_curve.gif

http://i82.photobucket.com/albums/j263/Smashchu/Demand_curve2.png

As they show, price drop will have little effect. The demand is the same. This is why cutting a products price is not significant since demand is not shifted but the equlibrium changes.