[QUOTE="PBSnipes"]Google capitalism, then tell me MS and Sony shouldn't be selling multiple SKU's.ZIMdoom
Stay in the kiddie pool...you're getting in over your head. While your at it, drop out of that Econ 101 course your wasting your money on, punch the prof for lying to you, and sign up for acourse in PR or advertising. Then you will see how business really works. Believing in economics is like beliving in Santa Clause...and how the rich kids are really "more good" because they get more presents. But that is another arguement for another forum.
I'm on the side of the industry growing and being sustainable and not crashing. Angering consumers by constantly outdating their product and risking games not working without upgrades or new hardwareis a surefire way for console makers to shoot themselves in the foot. Consumers want to know their product will be supported and work. They wouldn't buy the cheap 360 if they know developers were going to give up on it or someone would drop it. They wouldn't buy the cheap PS3 if they knew it couldn't do true HD output.
The whole thing about choice is you have to assume that people make the right one. History and reality has shown us that more often than not, that isn't the case.
While you're out there googling economics, you might want to google the Richard Ivey School of Business too. If you think I'm over my head in the kiddie pool, you're drowning in a bowl of soup.You see, I know this might be a crazy idea, but developers, publishers and manufacturers are in the business of making money. Despite what you apparently think, Nintendo, Sony and MS aren't selling consoles out of the goodness in their hearts. And if they aren't profitable, they stop making consoles. So at the root of thisthere are2 options for MS to take here, sell multiple SKU's to increase profits or create 1 SKU and eliminate 2 market segments that the core and elite reached.Multiple SKU'sguarentees higher profits now by putting the future at risk while the single SKU puts current profits at risk for higher potential profits in the future. Now first of all you have to look at the fact MS has blown about 6 billion dollars on the Xbox franchise and has yet to see any return, so already the division is in jeopardy. Second when you compare the risks/rewards of the 3 SKU vs 1 SKU senarios you see that only one option guarentees higher profits, mutliple SKUs. The second option only provides the potential for higher profits later, based on a future senario that may never happen. Like the old saying goes, 1 in hand is worth 2 in the bush.
Finally, the whole idea that the grand total of 3 SKUs is confusing consumers is rediculous. GM and Toyotaliterally offerdozens of different model and trim combinations, but they've succeeded with a far more complex and expensive product than a game console, yet the same people shopping for cars are going to be confused by the differences between 3 SKUs? And even if consumers are confused, they just have to ask for some help from a salesperson. So unless the majority of the so called casual market are a) mutes and/or b) scared to talk to strangers, 3 SKUs is not confusing.
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