binary solo said:
TRios_Zen said: I wonder how often it is that consumers of non-luxury/esteem goods PREFER that the multi-billion dollar company who makes their product of choice maintains an inflated price, even in an economic recession.
Sony does not have fans, they have a CULT...amazing and powerful brand loyalty. |
I don't understand your first paragraph. Are you saying that the PS3 is a non-luxury product? I beg to differ: all gaming consoles are luxury products, but most especially the PS3, being the highest priced console it is the luxury console (please don't misinterpret this statement, luxury does not necessarily = best). Also, are you saying that the PS3 price is inflated? I think this claim flies in the face of the claims of both PS3 supporters and detractors; particularly the detractors. At ever turn those who would see the PS3 crash and burn delight in telling anyone who will listen that the PS3 is still being sold at a loss. If a company is selling a product at a loss, by defintion, the price of the product CANNOT be inflated. At a time when a multi-billion dollar company is making a loss as an entire company, it makes no business sense for them to drop the price on any product which is making a loss/breaking even at best, that would just compound the losses and make it that much more difficult to get back to profitability. Selling a product as a loss leader is a common and reasonable business practice, in order to establish market share and/or if compensatory profits are being generated further downstream (with accessories and software), but this is not the case for Sony and PS3 right now. PS3 has reasonable market share already, and they obviously haven't been making compensatory profits elsewhere. Therefore continuing with the loss leader strategy for PS3 no longer has any business case justification, therefore no proce drop. During a global recession the most responsible thing a company can do is seek to return to profitability, ergo the most responsible thing for Sony to do is not drop the price of the PS3 until such time as the lower price is at break even or small profit. Sony's mission is quite clear, PS3 must sell at a profit ASAP (I think it probably is already) and continue to sell at a profit from here on out.
Your last sentence speaks more of your hate than the blindness of other people's brand loyalty; especially in light of the lack of sound reasoning in the opening paragraph.
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This is what I get for not checking VGChartz frequently enough, I miss the opportunity to defend my statements. So my somewhat late response is:
By "luxury" I meant a product whose price offers a barrier to entry to the masses, thus assissting in establishing the value of the brand. For example, why doesn't everyone own a Cartier watch? They are for the most part very attractive watches and well they do tell time. But they cost a good chunk of change; having the money to own one is what gives the product some of it's status (specifically because Cartier is NOT a watchmaker as opposed to say Tag, Panerai or Rolex). The PS3, should not be a status symbol because of it's price, that is my point.
As far as the fiduciary responsibility of Sony, do you sit on the board? Do you stand to gain if they make or lose money? As a consumer, a lower priced PS3 is bought more often, equals more people playing, which equals more friends on PSN, mores software supprot, etc...so how does you AS A CONSUMER, advocating a higher price benefit anyone except SONY?
Finally I have no problem with Darth, and I don't expect he cares that I said he was part of a cult particularly as there was no mal-intent. I also will not begrudge you your myopia, as many people assume a dissenting comment can only be derived from hate. You could not be further off base though; I don't hate the PS3 or Sony. I don't love them, but I don't love Microsoft or Nintendo either. They are just video game consoles/corporations...really.