Why Were Initial Hardware Projections So Far Off?

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welshbloke said:
I think it would be combination of the pent up demand was higher than expected and I blame Sony for making this the worlds worst kept secret and the better than expected price cut.

Both were unknow quantities on effect and I think combined they have produced some good first week sales.

Now we have the first week out of the way we need to wait and see what ratio was pent up demand versus demand at this price. I would suggest signs are good that Sony should see a sustained bump, now it is over to Microsoft to do something.

Can Microsoft to anything substantial if PS3 really his hit a mass market sweet spot and will continue to sell impressive (even Wii-like) numbers for the remainder of the year? They have a SKU that is $100 cheaper than PS3. If they drop the Elite price by another $50 it might help, but at $50 difference the PS3 is still effectively the same price as the Elite when you take into account the first year of XBL Gold.

MS won't react just yet, but if PS3 looks to be substantially outselling 360 for the remainder of the year they will do something before the real holiday selling season begins. Either some mega bundles or cut the Elite by another $75 and the Arcade by $50.