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makingmusic476 on 05 March 2008
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Dianko said:
TheRealMafoo said:
Dianko said:

And PS3 had to cut it's price $200 in a year to stay competitive. I'm not saying that the 360 WILL come back (though I will say I'm 90% sure the 2 will switch places a few more times), or that 360 will beat the PS3. But it's almost impossible to predict this kind of stuff. Hell, I wouldn't have predicted that a $400 PS3 would be on the market right now. I thought it would be damn near impossible due to cost. But here we are. If Sony could do a desperate move to get back sales, so can MS. It's far from a done deal. And obviously both are getting absolutely eclipsed by the Wii.


Nope. This is why Sony wins. They are a very good consumer electronics company competing in a consumer electronics market against a software company.

MS has no chance of beating Sony when it comes to reducing manufacturing costs of hardware. They are the new kids on the block when it comes to these kids of things, and Sony wrote the book on it.

It's what they do.


Be that as it may, MS isn't Sega. And MS isn't Sony. They have WAAAAAAAAAY more money. If you can't reduce costs (and there is no evidence that they can't), they can always take a small hit on their cash reserves to accomplish a price cut.

Also, while you are correct that Sony is better at lowering costs, keep in mind that the 40GB intro was not accomplished by lowered production costs but rather a $3 billion IPO.


But why would they want to?  They've lost well over $6 bil. since they first created the Xbox brand, and have only recently (with the release of Halo 3) started making a profit each quarter.  They have pointed at 2008 to be the year of profitibility for over two years now, and they have constantly been reassuring their stockholders that the 360 is a viable product.  They are past the point of dipping into the red, and will not do so again until the launch of the next Xbox.

When they'll drop the price next, I can't say, but I can guarantee that they won't go into the red to do so.  Personally, I'm feeling a $50 price cut right before GTAIV hits, which would definitely put the hurt on Sony, GT5P or not.