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Forums - Gaming - If sony made $100 price cut and MS did a counter price cut.......

Rpruett said:
S.T.A.G.E. said:
Sony is so stupid sometimes. They cut the price of the already cheap PS2, making it easier for people to buy more PS2's and less PS3's. Way to go Sony!

 

Yawn.  

 

Name me one business that DOESN'T do this.   You sell your product for as long as it makes financial sense to do so. 

It's good advertising, Keeps the Playstation/Sony name in the limelight and gives people more reason to maybe purchase a PS2 over a 360/Wii.  (Mind you people who are buying a PS2, 9 years into it's lifecycle probably don't care nearly as much about graphics or controls,  More than likely price and price alone.

provides several different entry points into your brand, PS2 for $100 / PS3 for $400.  Which also allows people to potentially get hooked into PS2 exclusive games that have become PS3 exclusive games (Metal Gear Solid, God of War, etc).

facilitates an increased chance of the possible future evolution to another 'newer' product of the same type based on brand familiarity.   (For example,  I bought a PS1 and enjoyed it.  so I got a PS2 and I enjoyed it,  so I got a PS3 and I enjoyed it.)  Or (I bought a Samsung LCD monitor about 2 years ago was impressed with it's quality/price ratio.  Looked at TVs the other day and bought a Samsung TV for many of the same reasons but also because I knew they were reliable because of my personal experience with my monitor.)

The sales of PS2's have stabalized. This is not a new product; it's more like 8 years old. Their sales cannot go beyond what they are getting now, because consumer demand for that product has been satisfied. The PS3's demand has not been allowed to increase based on price. If it was based on quantities shipped, then that would be a different story. This is not a typical business plan. What Sony is doing is not normal; it's a creative way of not helping the current product. The profit all goes to Blu Ray and the PS3 struggles. If you think that is alright, then you just follow suit in that linear thinking.

 



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Max King of the Wild said:
S.T.A.G.E. said:
Sony is so stupid sometimes. They cut the price of the already cheap PS2, making it easier for people to buy more PS2's and less PS3's. Way to go Sony!

duh demand isnt as high for ps2's. meaning even though the money comes from the same company they will be losing less with less consoles sold. not only that but they would still be making profit on every ps2 and sell more games and accessories. also ps2s could be phased out this year. ps3s wont be phased out so if your gonna drop its price they better be willing to stick to it.

 

 Yes, but if you are going to prolong the life of a console, you might as well fund more 1st party games until it's departure from the race. All I see are third parties.



Sony would go bankrupt, and Microsoft would make big enough losses to stop bothering with gaming forever.



Do we really need another theoretical Sony price cut thread? If Sony cut the price of the PS3 it would sell more units, same goes for Microsoft. It's the way stuff works.



Thanks for the input, Jeff.

 

 

It's not really true that Sony would go bankrupt just from cutting the price of the PS3 one year early (it would eat around 10% of their cash reserves).

However it would definitely speed up a potential bankruptcy which might be happening anyway in this recession.

 



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