if Sony drops the price will Microsoft follow?

[walsufnir]

CosmicSex said:

walsufnir said:

Why do you think they are losing money? Were there any reports on this?

Well, at this point one must imagine that Microsoft has lowered costs, but the cost was understood to be about $375 per unir without Kinect.  Now if the price of production were to fall to sub 299 that would be a substantial decrease in production costs. There is very little to draw on that would lead most to believe that a price cut would result in losing money for Microsoft. 

 

However,  have you noticed that Microsoft has begun introducing higher priced SKUs.  Microsoft is actually trying to make money. I think we will only see them lower prices in response to Sony.

The estimated cost is already outdated, of course. There were rumors that MS already managed to build the SoC at lower nm's.

Than take a look at the higher priced SKU's - they also include way better value. MS knows that these won't sell that much so they also don't expect them to account for potential losses. They just provide more options to customers.