PS3 cut 'won't worry' Microsoft

[Destroyer_of_knights]

Microsoft shouldn't be worried about the price cut since their doing one them selves and it looks like they may end up costing the same $299.

What Microsoft should be worried about is the PS3 slim redesign, it'll refresh the PS3 image giving the impression to those not in the know that it's even better, something Microsoft has nothing to compete with, not only that but it's made worse by the value proposition since at the same price the PS3 offers built in wifi, and can play Blu-ray movies, neither of which the 360 offer. This is what they should and probably are scared off but of course they wouldn't admit to it.

It's interesting though that Microsoft didn't lower the elite to at least $250, because that could negate the value the PS3 brings when priced the same...but it could be the situation where Microsoft simply didn't want to take a profit hit and are most likely selling the 360 at a possible cost to cost price once it drops down to $299. I don't mention the arcade, since those don't sell as well as the pro or elite, and since the pro is being phased out, that only leave 2 SKUs, with the elite being the one the majority of people will buy.

Also, If Microsoft did drop the Elite to $250, wouldn't they also compete directly with the wii, so at that stage they will be negating the PS3 value while at the same time being more value it's self when priced the same as the wii, in essence killing 2 birds with one stone.

If Microsoft did what I suggested, instead of what the rumour says they'll do, then they cold have also phased out the arcade, and just gone the 1 SKU route, as well as causing a little hurt to it's competition.