Sis said:No, this has more to do with consumer perception. If price was that important, iPod would be a niche mp3 player. Instead, people pay 200-300 to carry around 7 different songs.
But don't get me wrong, $200 is a nice price point for a consumer device, but it's best to achieve that naturally. In my opinion, MS won't cut the price of either Xbox 360's until 2007. Instead, we'll see some value added bundle at the same price. Think "Gears of War" edition.
A majority of these game consoles sell at the $149 price point. The iPod is as much a piece of jewelery as it is a music player. So when people can wear a PS3 around their necks, or when they ship with little white tell-tale earbuds, then i'll agree that price isnt important.
Sis said:The other side of me thinks it won't matter. People are still buying PS2s in large quantities. Their games still sell really well. The PSP is performing solidly. Does Sony really need to bleed money in order to compete with the Xbox 360? What if they delayed solely to be in a better financial position? That's a good thing, especially if this better financial position allows them to compete better on price..
The games sell really well becuase there's 100 million PS2's out there! Seriously though, while the revenue stream from the PS2 is nice, i dont think it will dictate Sony's strategy on this gen, theres way too much riding on it. You think Sony will gamble the upcoming generation and blu ray on some sales of PS2 hardware/software that may or may not change with the release of the PS3?
MS moved heaven and earth to launch first, i've got to believe there's something to that. The fact what MS thought was a a 6 month lead is now a 12 month lead only means that MS is getting more 'bang for their buck'. We've been through this before, and i know you agree, a big installed base lead = software, software = buyers, buyers=installed base lead, rinse, repeat.
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