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kars said:
FishyJoe said:
 

Sony didn't price cut. The retailers cut the price.


 Yes, but the did these cuts for a reason: A very low price range between the price that they had to pay and the advertised price, together with a very high inventory.

This means their money lies in their stores and they can't buy better selling things with it. So by selling it under price they get rid of their inventory and they get some of their money back. On the other hand it puts pressure on other leaders to lower their prices too. At the same time many dealers won't restock PS-3 as long as some shops sell them under price, that gives Sony a reason to give dealers better conditions, to buy new stock and not to drop their inventory to very low levels.  


This sounds kind of like a revolt from the retailers against sony.