PS3 Price Cuts: Why Sony Can’t Afford Not To

radha said:

fastyxx said:
Here's the major flaw. When Valve drops L4D by 50%, it costs them nothing. There's no physical product in a Steam download. No manufacturing costs. They've already recouped expenses on that game with millions sold, so anything beyond that is gravy.

When Sony needs to make $80 on their cut of new games or peripherals before they break even - that's a large task. We who frequent the site tend to buy a lot of games. But there are LOTS of gamers out there - the kind that would never spring for the PS3 at current prices - that might buy two or three games a year. That doesn't cover their losses.

What "we want" is irrelevant if they can't provide it without killing their business. What a corporation wants is profits - or in this case - to limit losses so that stock prices stay up and shareholders are happy. Especially Japanese companies. Corporations do not have egos about 2nd or 3rd place. Only employees, perhaps, and fans of products. And employees would rather keep their jobs rather than get laid off just to gain meaningless marketshare - in this case meaningless because selling more consoles at that price would actually be BAD for the company, not good.

You're thinking like a consumer - not like a corporation.

QTF damn accurate post +++ to you man

Thanks.

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