Videogamer article: Why the PS3 doesn't need a price cut...

[godf]

Brand loyalty is especially important for computer games though, which, as a medium, have long had a negative image. Kiddy and nerdy.

Sony turned that arround with the PS, and maintained their dominance with the PS2. Nintendo coming to be associated with kiddy, and microsoft with nerdy.

Sad as it may seem, there are still people who'd feel a bit ashmaed of buying a non-sony console. As if doing so would show they were a nerd. That may sound like an exageration, indeed, it may not even be a conscious thing (much brand loyalty is not), but it does seem to play a role in people's console preferences.

The fact sony got off to such a weak start, that their marketing was poor, and that the console seemed aimed only at obsessive fans, really hurt their brand this generation. The fact the wii appealed to social gamers, also took away a chunk of the market sony would have expected to wait for them.

Still, amongst the casual market, PS3 is seen as the 'coolest' console though. People may not know why, but it is. And I think we can see that in the PS3's sale figures. They've been far stronger than the games line-up would justify.

The strength of the PS3's sales are reason enough for sony to delay a price cut. With the 360 failing to surge ahead after its price cut, I think Sony executives will be feeling pretty relieved about the way things are gong, especially compared to a year ago.