Forums - Gaming Discussion - Theory on why Sony couldn't drop price on the PS4 last holiday

Of course they could have dropped the price. They had no reason to though. It would have been pointless since they were already selling almost all they could. It's also bad business to react to every single move your competitor makes, especially when they are reacting to you in the first place.



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When your system is selling above expectations and making you money, the "incentive" of beating your competition by more seems to pale compared to lost profits.

We may see one this year if demand declines and costs make it economically feasible.



I would not be surprised, afterall sony said it themselves: they had trouble keeping up with the demand in europe. so that says a lot, and they even opened new factories to start producing PS4s before the holidays, and still had trouble.

from a financial and competitor standpoint they did not need the price drop. more profits, while still outselling the closest competitor 2:1 worldwide and having close sales in NA to the competitors. So it was never threatened.

from a production standpoint they could not allow the price drop otherwise it would get sold out in matters of seconds, they needed to last the holidays. otherwise they would have had the same problem they faced in the holiday 2013 where they were sold out for almost 2 months.

 



XBox One needs to sell for less than the PS4 to be competitive. Sony knows this. Microsoft knows this too.

If Sony dropped the price to $350, MS would just drop to $300. Sony would sell the same amount, just make less money.



Because stock and demand where very good so wouldn't justify dropping price to enhance demand so it wouldn't get a good increase by dropping price.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

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Why is this a "theory"? I thought we already knew this.. It had nothing to do with money and all to do with stock. No point in dropping price to sell more if you're going to be unable to sell more due to not having stock.



Sony need to make a profit much more than MS it IS THAT SIMPLE



The PS4 sells well enough without pricecuts. It has all the advantages: it's the most popular console, it's the most powerful, it gets more support, and it's cheaper than the XBone in regular conditions (without any pricecuts or discounts). The only weak link of the system is Sony itself.



You know it deserves the GOTY.

Come join The 2018 Obscure Game Monthly Review Thread.

I don't see why they would lower the price when its selling so well.



spemanig said:

Why are people still over analyzing this? The PS4 didn't get a price drop because it doesn't NEED one. That's it.

I think this post said it best!



             

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