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Shadow1980 said:
Machiavellian said:
I would question with the sales the PS4 is doing why they would even need to drop the price. I can see a temporary Holiday type of drop to prepare for when MS does the same but permanent seems crazy.

Because sales are stagnant. Look at this graph of U.S. sales according to the NPD:

The PS4 is down about 27k units, or about 1.7%, effectively flat year-over-year, and that's with the supply issues in early 2014 and with June 2015 getting an assist from the Batman bundle.

But look at the PS2. It got its first price cut in May 2002, dropping from $300 to $200 ($398 down to $265 in 2015 U.S. dollars), and as a consequence it received a substantial boost. Overall Q2-Q4 sales in 2002 were up 41.3% YoY, and that boost persisted into 2003, with Q1 '03 being up 18.2% over Q1 '02 and Q2 '03 being about flat from Q2 '02.

Even in Europe the PS4 is up only about 13% YoY according to VGC, which isn't a lot. The only major region the PS4 is doing considerably better YoY is in Japan; while total YoY sales are flat so far, the system launched in February of last year, selling over 300k its first week, but comparing sales from Week 11 onwards, the PS4 is doing much better in Japan than it was doing in the same period last year. Of course, considering where the PS4 was in Japan last year, that's not saying much.

The PS4 is selling well considering that it doesn't have the absolute market dominance the PS2 had (the XBO is putting up a big fight in the U.S., and in Japan the Wii U and PS4 are proportionally closer to each other than in the West), but it's not exactly the fastest-selling console ever if you ignore its launch quarter (which was the best for any console ever). If Sony wants to grow the PS4's sales, they need to issue a price cut, preferably to $300.

Why would you do this?