A price cut wouldn'tbe good for the stockholders or M$, although thay have almost unlimited capital, they are still losing 1.05-1.15 billion on CURRENT repairs
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For one thing, a price cut is NEVER good when it comes to raw current profits, however a price cut now is timed right for a few reasons. R&D has gone down, and the production of the product has gotten cheap enough for them lower the prices with out a huge financial hit. They will take a hit, but it is more important to saturate the market with 360's and make the money in the long run from game purchases, that's how the market works. That's why it is conjecture that Sony is HURTING and that is why the price drop. The R&D has NOT had proper time to drop in cost for development, and have thus had to weigh the option of "take a larger hit and risk that the price drop will help push units, or leave the price the same and let the market sort it out." They didn't feel good about the market, so they instead initiated the price drop, with circumstances. The price points are the same still, however they added a little more and dropped the lowest SKU. More bang for the buck, if you will, but not a true price drop. So, it is a matter of Sony worry about tha market. Yes, they will say there is nothing wrong and this is all a part of the plan, but when analysists looked at the timing of the price drop in comparison to the amount it takes to make the PS3 today and compare that to previous months it doesn't add up. They're scared. This is the "oh ****" move, and no this is not a M$ gloat, really Wii has done a considerable amount of damage. Those Sony fans who where sane enough to realize the bottom price line was to high, yet couldn't go over to M$ or be thought a trader, went for the cheaper console. Then you have the parents who are not to savvy when it comes to consoles. They see THREE next gen consoles, here great things about the Wii, think about their pocket book and say "screw this, even I might like playing this!" There ya have it. So add the ever increasing base of the Wii, the slowly to moderately increasing XBox360 base, and the fast (because its a new realease) but dismally sales disappointing in the long run sales of the Sony and you have a scared *** company who is trying to do anything to get into the market. Afraid? Oh, I'm willing to be money on that.
