Will Sony Respond to XB1 Pricecut?

[DM235]

TheBlackNaruto said:

DM235 said:
Personally, I think Sony should do a matching price drop.

However, I think they will do what most companies do. Wait and see what impact it has. If sales of XBox One units jump up significantly (and in my opinion they will), they will react and drop the price then.

But why though that is the question? Why would they do a matching price drop for a temporary holiday promotion when they are literally curb stomping MS? Even if the XB1 sales jumped significantly Sony would have to drop HARD for MS to come close to passing it. Heck both Sony AND MS will already get a significant jump thanks to the normal Holiday boost but PS4 jump will be higher for obvious reason. So this price cut by MS in my eyes is a way to ATLEAST match the PS$4 sales wise in US/UK. SO this cut is a reaction to the success of the PS4 so there is no reason for Sony to react outside of normal Holiday deals.

I don't think the holiday promotion is temporary.  My gut tells that "holiday promotion" is marketing speak to create some urgency to buy now (before the price goes back up).  The only excpetion to this would be if sales really don't pick up (in which case MS is better off going back to the higher price to minimize losses), however I don't think this situation is likely.

The reason Sony should drop their price is to continue "curb stomping" MS.  If they don't, even is MS doesn't come close to passing it, they will still gain marketshare. This would be a win for MS.  This will be the first non-supply constrained holiday season, and any gains made this holiday will pay dividends for the next year (as friends tell their friends what they got, which would entice them to get the same platform).  As Sony, why would you want your competitor to gain anything on you?

I get it that Sony as a whole isn't doing that great financially, and that they would like to have extra profits this holiday, but that is a short term strategy.