The Concept of Value, or Why Price Cuts Can Fail

[Just_Ben]

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.

I also laught a little bit over that statement. If the PS3 would be 100€ right now, off course I would buy one (and yes, I know, it can't be that cheap). I know at least 3 guys wanting a PS3, but not for the current price. So the thing has "value" just not worth 400€