Japan and WW up 1st Jan

[Squilliam]

XxXProphecyXxX said:

Squilliam said:

If Sony can cut the PS3 to $199 then Microsoft can cut the Arcade to $129 and the 250GB to $199 and the Arcade Kinect 360 to $199-229. The relative pricing won't shift much even if Sony cuts the price because both Nintendo and Microsoft are taking much higher gross margins and operating margins than Sony. If Sony cannot cut the price to $199 then Microsoft can still cut the price to the above if it met their overall business objectives and have better relative pricing vs the PS3 compared to today. A price cut is only assured to improve the PS3's absolute sales position and not its relative sales position compared to the other two console makers.

PS: If Microsoft does cut the price like the above, you better tape your nuts to your leg because they have the operating margins to sustain an even bigger advertising campaign than they did this year to promote it and sales will assplode.

yous said the same shit in 2009 about MS following sony's price cut but it didn't happen and they got outsold.

I didn't really know much about Kinect at the time. So since late 2009 Sony sold 3M more than Microsoft however in that same period Microsoft made close to a billion dollars and managed to reverse the sales trend without a price cut. They didn't need to cut the price because it could be said that they managed to best Sony without one.