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Intrinsic on 24 October 2018
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Shadow1980 said:
Intrinsic said:

I don't mean to accuse you of anything, but its getting hardnot to think there is some bias to some of whta you say. 

But with regardsto wht you are saying now, I disagree. I don't think there is ay evidence to sugggest otherwise with regards to the PS4. What you are saying while true doesn'gt apply yet. And there is proof of that. Just loook at what happened when the PS4 was sold at $199 for all of the 3 or so days stock for the sku was available. 

I'm having a hard time parsing that post because its... odd structure, but I have to ask: What bias? I point out that the same think has applied to Xbox and Nintendo as well as PlayStation. MS could dock the XBO to $199 as well and it could have minimal effect. It's a simple fact, as demonstrated through multiple generations' worth of sales data, that at some point price cuts, even deep ones, simply cease to cause any significant long-term sales growth.

And for what it's worth, none of the Big Three have ever issued a price cut that deep this late in a system's life. I could see maybe a $50 cut to PS4 Slim, PS4 Pro, and XBO S, and maybe a $100 price cut for the X1X, but anything like a 33% reduction is likely going to be restricted to Black Friday and Christmas, where they're more likely to have an effect. The temporary price cuts issued during the holidays have arguably done more for sales than any of the permanent price cuts.

Sorry, was trying out a new mini keyboard. It was a nightmare to type on.

I agree that at some point price cuts won't help with sales in any meaningful long term way. However, I still stand by my belief that I don't think the PS4 is at that point yet. Firstly its still retailing for $299 and its sales are still keeing pace with  sales from previous years. Its down but not by enough to be a concern. And this is its 5th year. Secondly (again) we saw what that temporal price drop did for sales. While I agree that did more sales than other price drops there is also a simple explanation for that. It was a 33% drop to $199 as opposed to $50 drops to $349 and $299 respectively.

As for a drop to $199..... I don't think sony can't do it as i believe that right now they are probaly munfacturing the PS4 for less than $199 and their last price drop was almost 2 years ago. Its like their steady sales has allowed them sit on potential price drops. I guess at the end of the day it depends on if they want to leave money on the table or not.

If they drop the price to $249 then your theory will probably stand but if its dropped to $199 then i believe it will impact sales significantly. Or at the very least allow the PS4 have another 18-20M sales year but in its 6th year on the market.