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theprof00 on 15 May 2011
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RolStoppable said:
theprof00 said:

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.

The problem with this is that the PS brand isn't as strong as it used to be. If you have less consumers than before, then obviously your brand has weakened even if the consumers you maintained are now spending more than before. That's not even factoring in that the PS3 is available in more countries than the PS2 was at the same point in its life, so the loss in brand strength is actually bigger than the numbers in your original post make it out to be.

In this specific case, you are absolutely saying that a $100 price cut for the PS3 will increase sales drastically, anywhere between 30 to 60 % over the course of one year. And this is supposed to happen this late in the system's lifecycle. If you had said a 10-20 % increase is bound to happen, I wouldn't have much of a problem with that. And if VGC had any somewhat interesting threads at the moment, I wouldn't have posted in your thread in the first place.

@299$, ps3 customers > ps2 customers
fewer consumers, or more consumers holding off?

Anyway, I understand your point about the numbers. It's all conjecture after all. Why are you getting so upset, like this thread is a service that you've been paying for, and now regret?

20% or 60%. I just think it's interesting that at the same price, ps3 is ahead by several millions of units. I just did a simple cut and paste. If that's the end of the world, and completely noobish thing to do, then I'll take your point. I concede that I did that noobish thing.

I still think it will do it.