obonicus said:
When you say historically, are you referring exclusively to Japan? Because otherwise, hasn't the 360's price-cut late last year led to increased sales YoY in the US? (Of course, things are made murky by the economy going into a tailspin.)
I say historically as in "this is usually true for most consumer electronics. Thing is, this time, things are a little different.
Consoles have traditionally used a price skimming strategy* but the upper range has never been quite this high on consoles and sticker shock has never been such an issue before. The PS3 has been using video player / TV / computer / stereo system level price skimming here, which has never been tried in this environment before. I think the time limit implied by the generational reset every five or so years has stopped companies launching their consoles this high in the past.
I ascribed the 360 increase more to software than to hardware price cuts (which should have only kept sales flat), though you may be right in that sticker shock above a certain price point may have been affecting the 360. If it were true for the 360, it would logically follow that it is true for the PS3.
I'm just pointing out that under a price skimming strategy, price cuts have usually been used by companies as a strategic move to boost flagging sales and maintain profits over the course of a product's life cycle. If you do it correctly, you
shouldn't see increased sales over time, which would imply either that your price was too high for too long to begin with or that your price drop was too steep or too soon.
Which is why I'm interested in seeing where the PS3 will settle from now on. If they go back to or a few thousand above "normal", it means the PS3's problem has been one of value perception. If it shoots up to near Wii levels, it means the problem was always price. I think it's more the former, personally.
* Start with high price for the early adopter who will buy it at a high price, then drop over time as you decrease your manufacturing costs and sell to the rest of the segments of the population. The aim is to maintain sales over time.