@ Mr Stickball,
According to the data you have put up, 6 out of the 9 price cuts had an increase in sales and the data I have put up, 6 out of 11 price cuts.
The point I was saying was not that price cuts make a console lose sales, but that it had small impact. To have small impact in a mathematical model (or in other words to be independent) a price cut should neither increase the number of sales all the time or decrease. I think even your post proves this point. The 25% price cut in Europe for the PS2 was not able to increase sales, and neither was the 20% price drop for the Xbox or the 20% PSP price cut.
"Likewise, with the 20-25% increases, each saw a moderate gain."
Regarding the Gamecube agreed. The Xbox had a 54k loss, the PS2 a 33k gain and the PSP remained the same. (the gamecube had a 60k gain)So without the Gamcube, a 20-25% price cut resulted in a 20k loss! There goes your theory. I guess it was because Gamecubes first price cut was 20% it had a good impact.
According to the data, the first price cut generally does effect even if it is 20% as gamecubes.
"Now, with that kind of very decicive numbers on pricing"
To sum up:
10-15-25% Doesn't matter
30% A good increase in sales
The first price cut generally increases sales. It is not decicive in my opinion. Maybe I am reading them wrong.
And regarding to only looking at the 3 months before and after, I agree that a price cut will in the short term affect sales, but not in the mid and long run.(6 - 12 months) I guess that was the point I was trying to make.
Once again, I agree that price cuts will help systems and overpriced systems will have to be lowered. The reason that companies reduce the prices, is so they don't lose momentum.
