Quote:
Originally posted by Jin
Even if PS2 went down to $5, people would still be buying GCs and XBoxs, because they have games that the PS2 doesn't. Besides, why would Sony want to lose so much money when they have the opportunity to make a huge profit? It just wouldn't make sense for Sony financially, and it would not put Nintendo out of business. Maybe hurt their sales, but not put them out of business.
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I didn't mean an unreasonable price drop... I mean one like this last one that is forcing Nintendo and M$ to suffer bigger losses.
Lets say in November the prices are all the same, but that whole month Sony falls into a 3 way tie with Nintendo and MS, chances are that Ps2 will be $100 come december, and that will force Nintendo and Microsoft to cut thier planed Income in half just like that.
For each console produced the price of production goes down, at this point I wouldn't be suprised if Ps2 costs less than GCN to make. Also take into the equasion that Ps2 has a lot more gamers out there willing to buy games than Nintendo and MS have. SO with a huge price cut Sony wouldn't be hurting themselves, they would ONLY be hurting the Competition.
This first drop is killing Microsoft, and a $100 price tag would surely hurt Nintendo.
But that price cut will only happen if Nintendo or MS start to gain too much ground on Sony... and right now, Sony is dominating so it won't happen. but that month when MS or Nintendo tops (or even comes close to) Sony in sales, Nintendo and microsoft will have hell to pay as far as profiting.
-EDIT-
Oh, and I would like to add that Sony's price Cuts, just like this last one, wouldn't be meant to hurt sales of GCN and Xbox, nothing can change the sales like that... but it will hurt MS and Nintendo's pockets more than it hurts Sony's