A holiday price cut may make marketing sense if you consider that if you miss a holiday buyer, you're likely not going to get another chance to sell to them until next year.
On top of that, you have to understand that a lot of people view a console as a durable good (i.e. a good that most people only replace when their current one no longer meets their needs). If a customer accepts a competitors console on the basis of price or availability, then they may lose interest in the console they originally wanted so long as they have an adequate supply of good games on their current one.







