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Originally Posted by Empyrean Sorry to say, that's complete bull****.
First of all, Sony DID do the price-lowering trick way back when Zenith televisions were dominating the US market. They lowered the price to the point where they were LOSING money and inevitably when people began buying the sets, raised it to even point and then inevitably profitable. That's how they got into the US markets.
To hell with that, Sony doesn't even NEED to win this battle. They already did. Even if every American chooses not to buy a PS3, the rest of the world will. Asia, Europe, Africa. MAJOR market right there. If anything, by raising the price, Sony is doing, what is called "price skimming". Either way, Sony wins.
And, no, Microsoft definitely can't "afford" to lose money on a system. As an accounting major, I can tell you that no business would enter a market if there's no profit. Even in long-run terms, it would be completely nonsensical for MS to do something like that. They're already in the US market, but have not completely settled into the gaming industry the way Nintendo and Sony have.
Okay, you may argue that Microsoft would do the penetration pricing strategy to push Sony out of the market, but that's just never gonna happen. I don't know ONE person who wants Sony out of the gaming industry, and I know fewer people who want Microsoft to lead it. Stupid article based on the stupidest of presumptions. |
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