| starcraft said: Im hoping that Microsoft will do what they did with the original Xbox one more time. Suck it up, take the short term loss and drop Sony out of the NA market with a huge price-cut. Imagine what will happen to NA sales if a Pro could be had for $30 more than a Wii and an Arcade available for under $200. Not to mention the Elite would suddenly become affordable as a second console to the PS3 for hardcore gamers. |
The reason I stated what I did was this - MS is in the biz to win. They are not afraid of an enemy gaining ground, then cutting them down and forcing them into submission. Look at how long the 360 went with just one price cut - nearly 2 years. I expect them to do 1 price cut this year. Why? Easy ... they'll hold off Sony without any real loss. (like they are doing now) - they are hanging with the PS3 without going into the hole. The 360, at this stage, is either losing very little money or turning a profit for MS. They can afford to lower prices and still make a small profit. Sony can't. They are going deep into a deficit to move consoles/cheapiest BR player. They are going for penetration right now - they are hoping to get their money back off the expenisive BR disks. Developers want to get paid. They know the Wii is popular, but could end up being a money pit because grandpa and grandma love just one game - WiiSports - and their grands only like Mario. Anything else? It's a gamble. The PS3 has the most potential - but just like a rock on a cliff - it can't do any damage until an outside force enacts pressure. The PS3 may be one processing giant, but if devs see modest returns, there's no need for them to wonder if 'Are we going to make enough to keep the lights on?' They know on the 360, if it's a quality game, it will sell. Some games don't fall into this and are good, but it's rare.
The $50 price cut will stimulate sales and then ... when Sony matches, they'll go for the kill. Early next year, MS will drop to $199. Mark my words - Jan. 17th, 2008 - in early 2009, with a still hefty lead over Sony, and narrowing the gap with the Wii, MS will drop the hammer and hit the $199 mark before the Wii and the PS3. When that happens ... look out. And not just here in the U.S., but worldwide.
