| 4D Gamer III said: MS doesn't have to be better or more efficient at reducing price when they have substantially more assets to throw at the problem than Sony does. We may try to kid ourselves that Sony is okay now that it is making a modest profit in its gaming division but after losing all they had earned with the PS2 and then some they're doing everything they can to just keep their head above the water. I'm sure if Sony wanted to they could cut the price to $200 and still survive by the skin of their teeth, however, MS could easily do the same at an even greater loss and still come out shining. Sony may be better at cutting cost, but MS has the money to do the very same without even a second thought. Remember, MS doesn't have to come in 1st or 2nd this generation to achieve their objective of crippling Sony's market expansion. |
I am not sure if you know this or not, but MS in in business to make money, and they are not privately held. At some point they have to go to there stock holders and say:
"Well, after loosing 6 billion in this console thing over the last 7 years, we finaly turned a profit. But because we want to stick it to Sony, we plan on losing a few more billion, and with the x-box 720, should tun a profit in 2012. We project we will make back our total lose, of 9 billion by then, in 2018. Oh yea, and sorry guys, but we plan to put a BR in the x-box 720, so Sony will make money off every one we sell."
Sorry, if MS was a charitable organization, I would agree with you.
Sony already has the PS3 repackaging in the works to reduce costs. With MS still trying to figure out how to keep there's from breaking, and that's with a 1 year head start. My guess is by the end of 2009, Sony will be selling there console (for a profit), at a price point that MS will never be able to achieve profitability (probably $199 or $150).
I mean, if Sony had any competition for the PS2, it would probably sell for $89. Do you really think MS could have ever gotten the x-box down to $89?
