The usefullness of price cuts?

[ArchangelMadzz]

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.

Depends on what you mean by work. An effective price cut plugs a whole in a sinking boat. So far all of MS deals and cuts have pluggd a whole, only for it to be popped out again and water starts flowing to sink the boat. 

The goal of a price cut is to increase the movement of a product for an extended period of time. If the PS4 or X1 dropped to $200 that would cause a surge in sales, well.. forever. But a drop that causes a boost that fizzles works, it's just not great as they just take a loss at a small gain.