The Concept of Value, or Why Price Cuts Can Fail

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Slimebeast said:

LG[Infinite] said:

 

            Given all of this, what effect will a PS3 price-cut have? The answer is: not much. The values offered by the PS3 (i.e. the services it provides) are not what consumers deem valuable. Paying half price for something without value to you is still paying too much. If this seems unbelievable, consider the Xbox360. Despite some of the models of the Xbox360 being at or below the price point of the Wii it has not made any significant inroads into the Wii’s sales lead.

          

Those are flawed logics. You're talking as if value was totally separate from price. If that was the case, then Nintendo would have charged $600 for their console, and it would still sell like bazookas.

Choices, and value, aren't as black and white as you portrait here.

I may strongly prefer strawberry ice-cream, but I may very well end up buying vanilla if I think it tastes good too, and the vanilla company is selling it 30% cheaper.

The problem is that cost ( and price ) depend on values offered.

Example: Say PS3 sales are low cause its high price is moronic because forget that the price is caused by the "high cinematic/hollywood" experience offered by Sony.

There is a paradigm shift of values in the VG industry nowadays. It's a funny period to watch.

The "relative" low cost/price of Wii is because Nintendo broke value/cost balance.

EDIT:

Obviously it's not black and white. There is people mildly interested by a product ( with its set of values ) but won't purchase it at certain price.

However in VG industry is based heavily on momentum and Wii is getting a ton of it day in day out.