XBox 360 vs. PS3

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Helix I m going to wait another good 8 to 10 months before I even consider buying a console. A few reasons why are because the PS3 will get a few price cuts here and there, (due to price cuts in Blu-Ray drives). As well as modifications to the system as well. So until then I m just going to have a great time enjoying some of the MMO's on my decent Gaming Rig. But seriously the PS3 will get some nice tweaks and along with like another 50$ price cut. So why rush when you can just chill and wait for the games to come out. By the way I m not just speaking out my *** because I have bought the 360 before only to return it within a month, as well as being an un-proud Wii owner. Good God my Wii just sits there and collects dust.
 
Ummm...why would it drop in price when competition weakens?

That makes no sense from an economics standpoint. Its actually more likely to go UP than down at this point because people are more likely to pay more if Blu-Ray wins.
 
At the basic level yeah but not when you count in the other market factors such as cost of goods reductions as orders increase. oh and competition isn't really weakening too much with the loss of HD-DVD since that's not a significant factor that Nintendo Wii and Xbox360 purchasers made their purchase decision on. So based on that alone Sony will be forced to be competitive anyway.

Plus your it makes less sense that Sony will increase the price after they just had a reduction.
 
No, it doesn't.

Look.

Blu-Ray becomes popular.

PS3s "actual" value increases.
PS3s "marketability" increases.
PS3s userbase increases due to blu-ray video.

They have no reason to mark it down.

If people buy the PS3 jut for the blu-ray player Sony LOSES money on it compared to if they bought a different blu-ray player. They lose money on the console. They make it on the movies and games.

If you buy a third party blu-ray player, then buy 10 movies, they make money for 10 movies.

If you buy a ps3, then 10 movies, they make the money for the 10 movies MINUS the money they lost on the PS3.

Sony makes more money if blu-ray people buy third party players. Once blu-ray takes off (or if, we'll see how it goes) sony will not lower their price. If they do, people will buy it for blu-ray, and they'll lose money.

If the console becomes more valuable, it is silly to assume they'll lower the price. Its purely fantasy with no grounds in reality. There is no reason for them to lower.

Now, they will probably just leave it the same. If they did lower it, it would not be because of blu-ray's success, but rather because of a different reason. They can't raise the price, people would be ****ed.

I'm not saying they won't lower their prices. They might, they should, but it won't be because Blu-Ray's success. Blu-Ray's success will not decrease prices. It will move the price equilibrium up if anything, but I doubt enough that sony will want to toy with the psychology behind the number.

In basic economics, the law of demand states that the price of an item increases as the demand increases. law of demand Definition
 
You make a decent argument but my gut says it'll still get a price reduction within 12 months. If not totally for blu ray's success, at least in part because COGS will go down and companies also think about market share too. We don't even have a realistic idea of Sony's margins for these products so it's all speculation. My own company (Coca-Cola) makes decisions to drop price and LOSE money just so that the competition doesn't get a foothold all the time. Pepsi does the same thing. They throw away more money than us but alot of it comes from subsidies from Frito-Lay. If it wasn't for that we'd slaughter them.

If you look at things in a purely economic sense you're right but there's so many more factors to consider. Some of which I'm sure neither of us will ever find out. Happens all the time. I've negotiated several contracts where we lose money that way just to hold off the bad guys. I'm not flaming your opinion and I don't think you're flaming mine but I think we can respectfully disagree.
 
I'm not flaming your opinion and I don't think you're flaming mine but I think we can respectfully disagree.

This is the internet. no such thing, i want to see " your mother" calls and "gay jokes"
 
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