vherub on 13 June 2008
I don't think the ps3 is a good example of why price cuts can fail, I think other systems, such as the ngage, nuon or even gamecube offer more insight.
The ps3 may have extra features/services that people don't want to pay for, but it still also plays games, dvds and ps2 games. As there are still a good number of people buying ps2 at $100, it seems if the ps3 was only 100 or 150 more these people would trade up and buy the ps3 outright.
There are many gamers, for whom the pricepoint above $299 is too much. And there are still more gamers for whom $199 is the target price.
