Theory on why Sony couldn't drop price on the PS4 last holiday

[nanarchy]

platformmaster918 said:

WiiStation360 said:
XBox One needs to sell for less than the PS4 to be competitive. Sony knows this. Microsoft knows this too.

If Sony dropped the price to $350, MS would just drop to $300. Sony would sell the same amount, just make less money.

at a certain point the Xbox division (not MS as a whole obviously) just can't keep dropping through.  They need to make money just like Playstation division does.
And if it were always as simple as making up for it later then they wouldn't have started at $400 anyway.

It is always easier to start at a higher price and drop when  needed as the reaction to a price rise if you needed is always extremely negative. Sony had a great year, I doubt they could have produced enough consoles to fullfil the demand had they dropped the price, if they had the consoles though I think you would have seen some additional temporary sales through the holiday's as while they can't afford a price war with MS they certainly would have liked a larger slice of the xmas pie in places like the US.