[QUOTE="Jockss2"] Yes PS3 needs to move systems out a little quicker but they are FINE. 360 sold just about the same in their first year as the PS3 did. I think they dropped the price because it's cheaper to produce the ps3's now not because "sony is so desperate" like all the lemmings are saying.
Whats with the whole desperation arguments today anyways? i came to SW today and everything is about lemmings saying sony is in desperation by cutting prices..
SUD123456
Cost and price are not related. We live in a free market system where the value of something is established by the demand and supply of that thing. A potential reduction in manufacturing cost is irrelevant to price.
Price is established by demand/supply in a competitive environment (which this is).
Nintendo has not and will not reduce their price until such time as competitive pressure reduces their sales. Do you think they have not achieved some manufacturing efficiency and cost reduction? Of course they have...and they aren't reducing price because they don't have too.
Sony's PS3 is selling like crap. Everyone knows it. The analysts call it: dismal sales. They have no choice but to reduce the price. That's competition.
No one reduces price in a free market because of cost efficiencies/reduced manufacturing costs unless:
a. they are trying to get a jump and increase market share....putting pressure on the competition, or
b. the competitors have a jump on them and they are forced to respond to try to move more units.
Notice the commonality is what the competition has to offer. In a competitive free market this is what establishes value and leads to the demand/supply curve that establishes price. Not their cost. Which is irrelevant to whether you buy it or not.
Clearly Sony is being creamed, losing huge market share and moving from having 70% of the market to having 25%...think about that staggering change in market share so far.
And so, not quite a year in....this move ain't because they are pig poop happy to pass along savings to potential customers :)
damn you, this is exactly what I've been trying to say in another post, but you know how to put your thoughts on paper or shall we say virtual paper, hehe. I try, but when I read it, it wasn't what I was thinking, lol.
either way, good post and it makes perfect sense.
Log in to comment