The real question is why would Sony offer a price reduction, or even feel the overwhelming need to do so. I think it is a mass delusion on the part of many. Many who think that Sony really believes it still has a chance to crawl out of a third place finish this generation. That possibility died last year. Period end of story. Anyone telling you otherwise is just stunningly deluded. The deficit is too large, Microsoft has far too many existing advantages, and Microsoft has the winning financial model.
Basically Microsoft has complete control of the situation this generation, and can lay the smack down on Sony any time that Sony even gets the notion that it should compete. Microsoft is just bringing in too much cash, and has a bigger wallet. Further more Microsoft has all the incentive to have a bloody war. That gives them that much more of a chance to bleed Sony further. They bleed Sony enough, and Sony will have no choice, but to abandon manufacturing consoles all together. Which is what Microsoft really wants.
The point is this. Sony knows they cannot change their lot this generation. They are in third, and that is where they are going to stay. The best they can do is eek out some profit to offset their losses, and hopefully build a bank for the next generation. Which they simply have to do unless they are firmly in the low quality high profit margin frame of mind for next generation. They need to bank a couple billion, and not try to get by on razor margins.
You know when Sony will cut the prices. When they need to do so to keep the console selling, and not before. For those saying projections I say there is no law in stone that says they have to make those.
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