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souixan on 03 July 2008
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Million said:
smbu2000 said:
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.

 

 

That's not entirley true , it's really down to how fast Sony are able to reduce the price of the console , we know for certain Sony are going to be cutting the costs of the PS3 in fall with a reduction in component sizes. The more frequently they are able to reduce price , the more Sony is likely to be able to offer a price drop.


I'm gonna comment on the price reduction from a component standpoint and a 299/399 drop speculation.

Component reduction: It's true that reducing size and amount of items in the console will make a cheaper overall cost to produce the PS3. However doing this requires an investment in both time and money, they need working models, time to test etc. This all requires money and costs short term which is why we don't see reductions in chip sizes in the PS3/360/Wii every other week.

299/399 Price point: It would work to sell the item(hopefully) however Sony has a responsibility to it's share holders to show profit in as short a time as possible. If they take a loss leader and show no signs of profitability in a reasonable amount of time(considering PS3 is out nearing it's 2nd year.) share holders may drop the organization which is actually a lot worse. Chances are a 299$ PS3 right this second may hurt Microsoft but it would also gravely hurt Sony and their image to investors.

Edit: As far as the ring of light being fully lit up with green bars, that has to do with amount of active controllers