| kylohk said: The problem of reducing the price to $250 is that Sony will suffer heavier losses per console sold. I don't know whether having a starting price of $600 is still selling at a loss, but if it is, then the shareholders will definitely not agree. Let's say the PS3 does drop down. Some PS3 demand is gained at the Wii's expense. But if the Wii counters with its own price drop, the demand curves for both consoles would be back to norma |
I agree, Sony (but it could be the same for the others) should obviously keep an eye on competitors' prices, but it should by no means blindly follow them on every rebate. The three consoles aren't equal, so each one has its right price, its balance between price and features, with regard also to the desired target. And even if Wii looks like it has the strongest appeal, PS3 too has reached a point where a larger audience finds it a good buy, rushing rebates wouldn't help much, the increased release of good titles will much more, as most people waiting for a lower price is waiting for a larger game library too, and, a part of them, lower prices for BD movies too, to maximize the value of the purchase. With more games available and the refining of production process, carefully planned rebates will come natural, won't cause losses and will help fully without the bad side effects of rushed and desperate ones.
