Intrinsic said:
I don't think you are downplaying sony, or trying to. What I don't get is the notion that launching at a higher price puts sony (or anyone for that matter) in a better position to drop prices and in turn stimulate sales. While that is technically correct, its also incorrect. It would be all round correct if sony launched at a higher price by imposing a price premium; basically say it was selling the PS4 for about 30%-50% more than its actual market value. In a case like that, it then has the wiggle room to drop prices and still be making a profit. But if the console is sold at break even prices, as it was with teh PS4 and as it is with the NS (I would like to believe the latter) then it means both platforms are in the exact same position and both have the exact same hurdles to overcome to get prices lower. It may be harder to do for one than the other, but thats not out business. Basically, its a moot point; sony launched at $400. Dropped its price by 25% to spur sales as you said, nothing stopping nintendo from droping its own price by 25% too when its good and ready. Still doesn't change the fact that the PS4, NS and even the XB1 would have all sold more than whatever they sold if they were all launched at prices lower than whatever they launched it. How long those sales can be sustained is a another matter. |
I agree with you. I think you misunderstanding what I'm saying or I am not explaining myself properly. I don't think launching at a high price puts Sony at an advantage. I'm saying that Sony is at a better advantage than Nintendo at this moment in time. Switch is matching PS4 with launches aligned but PS4 was $100 more at that moment. Switch is at a disadvantage because they have less room to drop the price.
Again, I'm not saying releasing a console for higher price puts Sony at an advantage, I'm weighting up the situation that they're both in now.
Essay Pro