Dead console walking?

[Dodece]

@FaRmLaNd

There are two effects that price cuts have had this generation. We have plateaus and we have the spikes. When a console plateaus it increases, and then levels off at a much higher rate. This effect is long lived in fact it is basically indefinite. Spikes are the opposite the sales increase are incredibly large, but after a few weeks the sales pitch back down to the near original sales. Perhaps with a very modest increase over the original sales.

The point of all this is that Microsoft plateaus. While Sony is heavy on the spike. The point being that you cannot expect Sony to enjoy the exact same benefit from a price cut as Microsoft has. Historically PS3 price cuts burn themselves out really quick, and then you are looking at a ten to fifteen percent gain over the long. Rather then a thirty to forty percent gain in the long like what Microsoft seems to get.

Anyway everyone seems to forget this is a tracking site, and that we have data for the impact of price cuts not only for platforms in general, but platforms in specific. Needless to say its really quite informative. I am often disappointed in the price cut theorists not using these numbers to create future forecasts for the effects of a price cut on the PS3. Who knows it might not even net Sony margin enough to beat Microsoft in weekly sales. I doubt a increase of fifteen to twenty percent alone would have enough clout to change the weekly sales trends.