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tokilamockingbrd said:
Nuvendil said:

That plus that would be 3 perceived price cuts in a year (unbundling the Kinect wasn't one technically, but in practicality it was).  Dropping price that fast erodes consumer confidence as they become unsure whether they should buy now or wait for yet another price cut.  Plus, if they commit to another price cut, they will be forced to maintain that price difference between the Xbone and PS4.  They already have to maintain a $50 price difference now, a $100 one could be very detrimental to profits.  Especially since people expect bundles now.

yes they are in a bit of a hole. RIght now they cant outsell sony in the US with a 100 dollar value gap.

Yeah.  But I honestly believe they're better off riding it out, especially if they want to stay in the console business long term.  Coming in second would be worth maintaining price stability and perceived brand value.  Ask Nintendo what happens when you spend years conditioning consumers to always expect your hardware to be cheap :P (I know that's only a part of it, but I honestly believe it is a very real part of Nintendo's early woes with the Wii U).