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Forums - Microsoft - A relatively cheap PS3 Slim is inbound. Let's talk Microsoft's response.

Squilliam said:
Slimebeast said:
Squilliam said:
^ Thats just the moral system, good/bad.

@Slimebeast, seriously predicting 2 years into the future is a crapshoot. You have far too many game, price and accessory variables in the mean time.


Mass market price, man. $399 has a psychological barrier even with Blu-ray.

$299 will fly off the shelves.

4 words: price elasticity of demand.

What mass market price means is that revenue falls when they lower the price (decreased effect) now price elasticity falls the closer the console gets to the optimum. Since the PS3 showed a price elasticity of roughly -1.07 therefore with a 25% cut the total sales in the longer term will likely be ~20-25% higher than they compared to say Juine this year when the sales were following a more natural curve with fewer slim/cut rumours. Especially as the market has reached the half way point in terms of sales.

Really can't follow that paragraph of overly compressed economics, so I have no idea if it's flawless or just an attempt at pseudo-intelligence, but I feel similarly to you and Seece in that things tend to work on a "Sony one year, Microsoft the next" cycle and so Slimebeast should bear in mind that whilst the Slim may help PS3 to a stronger Christmas this year, Microsoft will no doubt deal their next big hand (Natal, cuts, giant software such as Reach or Gears 3) in the run-up to Christmas 2010 and thus regain momentum.



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299$ will fly off the shelves, really? You are aware what the average income is of the industrialized world, right?

Not to mention when your competitor is still 100 dollars cheaper, its not really like Sony is offering people the Mecca of gaming for peanuts less than everyone else. They brought themselves back into the game. They are nowhere near close to winning it.



the fact that xbox 360 have netflix exclusively makes BluRay irrelevant - at least in america. ps3 will never outsell 360 there.



disolitude said:
Nowhere.

Focus on being profitable. 8 million lead will go a long way...and Natal will take care of things next year.

agreeded.





Official member of the Xbox 360 Squad

Epic thread is epic.



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