Saiyar said: http://en.wikipedia.org/wiki/Dumping_%28pricing_policy%29 Have I got this right? Since the PS3 is currently being sold below it's cost of production if Sony were to sell it at a lower price than the equivalent model of the 360 (and as long as the 360 is being sold above production costs) Microsoft could file an antidumping petition since it could be deemed as a threat to the industry of the importing country (ie the USA). I am guessing the laws are alot more complicated than this though. |
The situation is a little more complicated. Some markets accept selling a product or service below cost to make money later on. Razors and razor blades are the classic example. Most safety-razor companies sell the razors below cost but make a profit on the supplies, i.e. - razor blades. Ink jet printers are another example... sell the printer at or below cost but charge a lot for the ink to make up for it. Same goes for video-game consoles, today. As someone else said, a competitor has to complain... the government isn't going to automatically pick up the ball and run with it because those laws are there to protect the marketplace, no the general public welfare.
Unless Nintendo and/or Sony can prove they've never behaved in a similar way, then the suit would be dismissed.