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PLAYSTATION 3 (PS3)
at 12:11PM PST on September 26, 2007.
I don't take analyst's word as infallible. I've held the view I posted for months, they're merely backing up what I think. Noone saw the Wii's degree of success coming, not even Nintendo (evidenced by their supply not enough for demand and their own words). Analysts have also said PS3 would pull ahead later in this generation, as late as 2010.
I think they can cut the price this holiday and keep it there beyond March, rather than waiting until March. If PS3 gets sacked this holiday that will hurt it more than the money lost on hardware this holiday, both in marketshare, 3rd party support, and mindshare.
It's not just whether a consumer is deciding between 360 and PS3. If they're looking at PS3 and its a choice of $599, $499, or $399, obviously they will be more likely to buy at $399. And you also have to consider people who already own a 360 or Wii and still want a PS3. Or people who want PS3 more than a 360, like Sony fans.
People are not obsessing about price only, people are looking at content too, but people are recognizing that $599 and $499 is too high. When the price is that high, its very important to people. Only the most hardcore will spend that money, even if the content is there. The original price cut wasn't even really a price cut, but even so, 2 pricecuts in one year is not Dreamcast like desperation, that was a very different case than PS3.
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