The point of a price drop that brings revenue per unit into the red is to artificially inflate the market with a product. But by going into the red they are basically producing a unit for free and then the console developer takes on the burden.
Hypothetically if Sony/Microsoft can generate their respective consoles at profit at $275 then what would happen?
Firstly the Wii will still be $250 by that point if it is still selling as fast as it is now.
The price drop won't have an impact on Wii sales directly unless Sony decides to coopt and are successful at doing so. But right now they are in a comfy space and in that hypothetical situation, you would see PS2 level sales on PS3. HOWEVER: The I believe their is a roof that was first attained by the Xbox360 of demand for those types of systems. It could be a number of factors, but as Xbox360 sales go down, PS3 sales go up and PSP sales go up - but it would seem for now that's probably due to direct competition. So no - unless they coopt.
I'm Unamerica and you can too.
The Official Huge Monster Hunter Thread:
