Analyst: Microsoft Could Use Price as a Weapon

[smbu2000]

Loud_Hot_White_Box said:

scat398 said:
Price is a huge advantage for the 360 especially in NA where consumers shop without bias. A $50 price drop will keep MS well ahead of Sony in NA for the rest of this year.

Price drops in areas where consumers hold a heavy bias against you won't help as much, but in Europe it's helped, especially in the UK it's helped keep Microsoft on even footing.

 

It's not that consumers shop without bias here, it's that they don't care as much about evidence of hardware quality.

Hey, what's wrong with that 360 button in the pic in the OP?  I've never seen one with 4 green lights.

Sony should go balls to the wall and drop to $299/$399 for two models, realizing they are going to increase install base and profit long term.  MS couldn't stand up to a $299 PS3.

You do realize that a price cut like that would literally kill any chance of profitability for Sony's game department(also any chance of the PS3 actually realizing a profit at all). While MS is making money off of the 360, so a price cut is acceptable for them, Sony is still losing money on the PS3 and a price cut would cause them to lose a boatload more on it.