The usefullness of price cuts?

[teigaga]

kowenicki said:

ArchangelMadzz said:

kowenicki said:
Yeah. Price cuts dont work.

Deary me. Are you serious?

Long term? Microsoft has had crazy promotions pracically every month of the year. None of them has had a lasting effect, although this is definitely the best and most successful one they've done. But if they didn't outsell PS4 WW this week then it wont happen this year as the intial rush of the price drop would fade. Although there will be a natural christmas bump the PS4 gets that aswell.

So a price cut only works if you become number 1 globally in your product space?

This is silly thinking.

Price cuts increase sales, temporarily or long term . Therefore they work. The end.

Not all pricecuts are of the same value though, some are certainly more effective then others. I remember the Vita's hardware barely responded to a price cut last year. Questioning the usefullness of a pricecut is fair, but I agree basing its value on whether or not it allowed a product to outsold its competitor is nonsensical.