| LG[Infinite] said: The Concept of Value, or Why Price Cuts Can Fail 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. To finish with a somewhat trite example, consider two ice cream companies. One of them makes vanilla and the other makes strawberry. Both of them want me to buy their ice cream. Unfortunately for the vanilla company, I like strawberry ice cream. They can cut their price in half, even put in real vanilla and it will make no difference. I do not value vanilla, but I do value strawberry.
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I would describe the current console situation as Magnum Classic (360), Magnum White (PS3) and Solero Exotic (Wii). Two chocolat ice creams and one fruit ice cream. So if Magnum White drops it's price, sales of Magnum Classic will decrease and it will have little effect on Solero Exotic. Why? It's simple your looking for motion Gaming or HD gaming.
