Microsoft's $100 Offer Exposes its Fear That Sony Will Win the PS4 vs Xbox One War

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binary solo said:

OttoniBastos said:
I don't know if this matter but saw a lot of Xone's "price cut" deals these days on internet(N4G,Neogaf,Etc...) but not for PS4.

This could mean that there is a lot o Xone on shelves that nobody wants?

There are retailers here discounting Xb one by $50 or more. I don't know wh's taking the loss on those discounts. But if the cost to market is US$471 then a $50 price cut here pretty much means a small loss on hardware.

Well. Sony and Microsoft's average selling Price is higher than $400 and $500 if you account for the world-wide market, thus by extension, other countries can "subsidise" another to gain more overall marketshare.
For instance, the Playstation 4 is $550 here (The thieves!) and the Xbox One is $600 (Less thieving!)

Thus by extension Microsoft and Sony could afford to drop below the $400 and $500 mark respectively and still end up making an overall profit from the hardware.

Having a dominant device though, is always bad for a consumer, companies get complacant when that happens, which results in less innovation and higher prices for longer.