| vivster said: That tackles only one of my concerns and isn't even that clear cut. I don't think Sony can afford an unplanned pricecut of even $50. Even if the cost of producing the console drop they were still calculating with the original price, which means at 5 million sold consoles that would make a 250 million dent in the forecast for just one division of Sony. I don't think Sony is in a position to throw away money. They are not losing the war and they will not go to great lengths if a competitor is just catching up. |
That's why it is planned. The $400 price wont stay for the generation. If MS doesn't try to cut their price and holds then Sony will probably naturally drop their price sometime in Sept next year. If MS tries to become competitive and cuts price then Sony rearranges their plans and moves it up to sometime in June to counter.
Price drops are not as simple as "well sony cut 50 dollars off and sold 5 million consoles so the lost 250mil dollars more than they would have" A lot of the times the boost in sales at the lower price off set the loss and actually creates more revenue and profit
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