| Dodece said: There is a lot of innuendo in this thread that implies that Microsoft is not in a position to offer a real price reduction, but on the flip side somehow Sony is in a perfect position to do so, and that friends flies in the face of logic. Microsoft is farther in its development cycle, they have better secondary revenue streams, they have a stronger attach rate, and they have a higher install base. All these things married together mean they can more then easily afford a small price reduction. They simply have more ways to realistically make it up. While Sony not enjoying these advantages recently said that they weren't even breaking even on their hardware. Frankly I do not believe that Sony or Microsoft are going to offer price reductions in the latter part of this year. Though I doubt any side would shy away from a pricing war. The important thing to remember is that Microsoft has Sony on the ropes in North America. It would be foolish for them to allow Sony to work itself back into the fight. To me as far as Microsoft goes is can they maximize the potential if it comes to a price war. Were they to cut the price of the arcade by fifty dollars they would probably need to have a few million more consoles in the channel to meet demand. A further drop could probably edge Sony out of the North American market as long as Nintendo holds firm, but can Microsoft get that many consoles to market. Remember Sony is only seventeen percent of that market so a great holiday for Microsoft could push them terrifyingly close to single digits. I think Microsoft would answer a price cut if they could meet demand. The possibility of dealing a death blow to Sony in that one market alone is worth the loss of some profit in the short term. |
the ps2 and psp makes sony lots of money.. and the new psp will make sony a lot more.
Second sony has not had a price drop in 2 years... theres a rumored slim (which we cost less money to make but of course they might not drop the price) and sony NEEDS this price drop this year. Sony is willing to take loses because at one point the PS brand was about 40% of sonys total profits. M$ has had 2 price drops in others and 1 big one WW over this same time frame. M$ dos not want to drop the price every year like eveyone thinks it does.
its just about time for sony and thier price drop and with activison talking shit i think SOny knows this.
Lastly if M$ drops the price of the arcade (which it will not intill late 2010) it will be losing money on each system sold. Quote me on this there will be NO price drop for the arcade this year. $150 bucks is just not possible yet. only one i see is it dropping 20 bucks to 179.99 USD but i think they know there is no point in doing that.
