Million said:
yo_john117 said:
nightsurge said:
It makes me laugh when people think that the PS3 has "more room to drop the price" than the 360. In reality, though, the PS3 will never be able to reach as low of a price as the 360 because of it's extra tech and more expensive technology. While the 360 may one day reach $99 at the very end of it's life, the PS3 will only be able to be lowered to about $200 at the end of its life due to all this extra technology and more expensive technology they added into it.
The PS3's price originally will drop more, and faster, given it's initial high price tag, but after it hits $300 it will stall for easily two years before another price cut could be afforded and affective. This is because the rate at which things become cheaper can roughly follow Moore's Law and so after 2 years of production the parts should cost roughly half as much. This is true for the PS3 as at launch it cost nearly $800-900 to make and now is roughly $400-450 to make. The 360 started at roughly $475 to make and now costs about $200-225 to make. That means that the 360 will be able to afford another price cut within the coming months if needed, while the PS3's cost of production will not reach $300 for another year, and will not reach $200 production cost for at least another 2-3 years.
And that's if things follow Moore's law exactly which will not be the case.
In reality, the 360 has more room to lower the price or to change the bundles because it still holds the majority of it's sales at the $300 Pro console. This is likely to be lowered to $200-250, and then again to $200 within a year, while the Arcade will lower to $150. Ok, I know I am speaking in absolutes, so I'd just like to clarify that this is what I feel has a very great probability to happen and not necessarily the actual outcome.
Regardless, the main fact I want to come across is that since the PS3 started at such a high price, it will end at a much higher price than the 360. You will never see a mass market priced PS3 at $200 until the day this generation ends and the 360 will almost assuredly maintain a 50% cheaper model until the end of the generation. |
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Hmm how does that in any way end the thread ?. Microsoft could give away XBOX 360's for free if they wanted to , if the only thing your taking into consideration is Sony's and MS's ability to reduce costs/cut the prices of their consoles then your failing to take into account the more relevant factors of their competition.
Even your price cut argument is weak.
-Moores law doesn't apply to the whole PS3 , there are some non-computing components in the PS3.
-Your price cut argument doesn't take into account methods of distribution both might be using , scales of economy they might be taking advantage.
-You also fail to consider changes in currency.
-You also fail to consider the fact that Sony has sold the PS3 at a loss in past ( I don't think they are now), Sony could in theory take a loss to cut the PS3's price.
-You also fail to consider that Sony has a history in console cost reduction that Microsoft doesn't have.
And that's only the begining.
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