| Shadow1980 said: Not unless MS wants to engage in a costly price war. The XBO is already incapable of beating the PS4 outside the holidays even at $50 below parity, so obviously at least $100 is necessary. Perhaps at $300 it can eliminate the monthly sales gap and widen it in Xbox's favor in the holidays. However, Sony hasn't announced a price cut yet, and therein lies the rub. If the PS4 is reduced to $350, that would already put pressure on MS to reduce to XBO to at least $300 to keep things where they are or $250 to have a $100 price advantage. But if the PS4 is reduced to $300, MS would have to slash the price of the XBO by yet another $100 from its current price to keep the $50 advantage or by $150 to get to $100 below parity. Would MS be willing to eat the losses incurred by reducing the XBO to $250 or even $200 this year just to have a chance to win the U.S.? I somehow doubt that. Like I said in another thread, they'd probably rather get decent sales and make at least some profit than get great sales but at a significant loss. At this point, the steps MS would need to take to win the U.S. would result in a Pyrrhic victory. Investors would not be happy. |
Even though many disagree, I think M$ is the only one who can afford to be in a price war. Sony has the sales afdvantage right now, and they get to keep the price high. If they drop the price, they also lose the profitability. Long term, Sony will keep the PS4's price as high as possible. They are getting enough of the market that they don't need to lower the price just to "beat" Microsoft. They need the profit to continue to fuel the companies turn around.
Does that mean that Microsoft wants to lose money? No, but they will do whatever it takes to stay relevent this generation, even if it means only winning 2 months a year. Most people only hear about the christmas sales anyway, so winning Jan-Oct. doesn't have the effect that the Holidays have in peoples minds.
It is near the end of the end....
