RolStoppable said:
But that defeats your conclusion. You say that another price cut is going to push the PS3 easily ahead of the 360, because the PS brand is just as strong as last generation. By the same logic, the Xbox brand is far stronger than last gen, so another 360 price cut should ensure that it stays ahead for quite a while longer. Or do pricecuts only do wonders for the PS brand? |
ah, I see. Yes, I do not mean to say that price-cuts = sales. I'm talking about in 3 months, ps3 will have been at 299$ for the same amount of time the ps2 was. And if we want to look at an inflation-based example with ps2 at 199$, it's still outselling it.
I don't have any evidence showing that price cuts improve sales. I have some factoids that help me to a conclusion though. In it's 4th year ps3 sales were higher than ever, ps2's highest sales were in its third year (doubling its first and second years) at a price of 199$. When it dropped to 179$ sales partially went down annually, same at 149, and same at 129.
Looking at all the data together it SUGGESTS that sales will increase. Using inflation, value has gone down some 30%, so we're looking at 260$ is the equivalent of 199$ in ps2 days.
Lastly, don't you think you're simplifying my conclusions a bit much? You know about market saturation, and price cuts (and how they're meant to maintain, not increase sales). But I do appreciate the opportunity to clarify.
Price cut demand does not equal higher sales. It CAN sometimes mean that, but that was not what I was trying to convey. I'm saying that given the equal demand and brand strength to the ps2, cutting the price in equivalence to the ps2 should produce the same sales as the ps2.
