kylohk on 15 May 2008
The problem of reducing the price to $250 is that Sony will suffer heavier losses per console sold. I don't know whether having a starting price of $600 is still selling at a loss, but if it is, then the shareholders will definitely not agree.
Let's say the PS3 does drop down. Some PS3 demand is gained at the Wii's expense. But if the Wii counters with its own price drop, the demand curves for both consoles would be back to normal.
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