Squilliam on 15 May 2008
| Rock_on_2008 said: Cheaper production costs per unit improves the profitability for the company to sell video game consoles. In time more price cuts will result. |
Actually theres a correlation between price cuts and cost cutting. Cost cutting however doesn't cause a price cut. Companies only cut the price when it suits their objectives.
For example, the Wiis cost would have come down since production commenced - R+D, Tooling, Economies of scale, component price reductions. They haven't cut the price.
Tease.
