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Train wreck on 19 September 2012
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HappySqurriel said:
Train wreck said:
I think this is more of Sony and to a certain extent Microsoft putting a floor on the price of their systems because they dont want to destroy an industry that is already in shambles with more and more price cuts.

I'm sure if you cut through the Sony hate (damn if they do or dont) and console fanboyism you can clearly see that.

Both systems will most likely have new variations coming out in the next 12-18 months so having a set price and not changing it would make the most sense if you dont want to your industry to decline 20% every month.

The new PS3 looks to be production efficient while keeping its price, means they are not sacrificing margins and the same price means they see no real threat from the Wii U in its first year in terms of amount of consoles sold.


I don't see how a price cut on hardware would weaken the industry ...

I do think that Sony and Microsoft may want to keep the price of their current systems relatively high (compared to consoles at a similar point in previous generations) so that their next system seems to be more reasonably priced at launch. With exchange rates being what they are, the likelihood that the PS4 and 'XBox 720' will be bundled with expensive accessories (Kinect 2, PS Move and/or touch screen controller), and releasing with a system that is more powerful and expensive than the Wii U, it may be difficult for Sony and Microsoft to release their next generation systems for less than $400; and they may be closer to $500 at launch.

The strategy has worked for some products in the past, and it is essentially to convince you that the new product isn't expensive because it is worth so much more than the previous model and doesn't cost that much more.

The number of units that the PS3 and 360 would have to generate to equal or surpass any price cut they impliment now is not worth it this late in the generation, so yes it would have a significantly bad effect on the industry.  Just like the 3DS pre and post price cut and the vita, those enities have not been able to move the needle on declining sales (at least here in the US) at all, add a declining PS3 and X360 (which the Wii U would not be able to make up) and you have a receipe for disaster.