Kasz216 on 24 January 2008
| Soriku said: That's half of what Sony did in the whole PS2 lifetime. Sweet. |
Yeah. That's why the first thing you learn in Buisness 101 is that dropping your price to increase market share is almost always a mistake unless you are desperate.
You almost never pick up enough volume to make back the profit your losing. You usually end up increasing your revenue but hurting your profits.
The only advantage is that your opposing companies lose revenue. It's a little different since in videogames since you also make money off the software, but it's pretty likely Sony's overagressive loss leading strategy seriously hurt their profit in the PS2 era.
