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There's a new rumor going around that (despite the Australian price reduction) SCEE will cut the PS2's price to £129.99 on August 30, the day after they announce it at ECTS.
It kind of makes sense.
Instead of cutting the price now as they originally planned (they were going to drop this spring), in light of the recent price war in Europe, SCEE would wait till ECTS to regain the price advantage and regain control of the price war in Europe (SCEA has control of the price war in America, and SCEI sort of has control in Japan).
If SCEE were to cut the PS2 price now, they would be vulnerable to that price inertia Nintendo was talking about (people would believe Xbox had more value than PS2) when Microsoft would cut the Xbox price months later (and then Sony would be in the position of nearly cutting the price again, like they are now after the price war got out of control, started by Microsoft instead of Sony, and making the other consoles more competitively priced against PS2--it was going to be Xbox £299, PS2 £199 and GC £149--then it became Xbox £199, PS2 £199 and GC £129...if Sony cut price now, that would make it vulnerable if MS were to cut the price again, so Sony's going to wait instead of doing it now I believe).
This way Sony could cut the PS2's price to £129 soon enough and boost sales, while at the same time forcing MS to cut their price (Sony wants a price war). This £129 on August 30th rumor interestingly coincides with the rumored Xbox price cut to £149.99 shortly after the ECTS show. If both are true, this could make MS change their plans and drop to £129.99 immediately after Sony does, to match PS2's price and keep up (they don't want price to be an inhibiting factor).
This way Sony regains control of the price war, forcing MS to follow suit after Sony's price cut (and not the other way around), and they wouldn't be vulnerable to an Xbox price cut months later. (which would happen if SCEE cut the price now) Xbox would have the price advantage and dictate things. Sony doesn't want that, they want the price advantage and dictate the price war (forcing MS down, not the other way around). And if SCEE cut the price now, Xbox would have more price cut potential (since it would cost more it would be able to cut the price more and make PS2 and GC vulnerable, whereas PS2 & GC would have much less price cut potential and eventually run out of price cuts...say, at £99).
And that would make all three £129. Which could then in turn make Nintendo cut the price to £99.
Would make an interesting second round of the price war in Europe.
And would be an interesting strategy by Sony.
It kind of makes sense.
Instead of cutting the price now as they originally planned (they were going to drop this spring), in light of the recent price war in Europe, SCEE would wait till ECTS to regain the price advantage and regain control of the price war in Europe (SCEA has control of the price war in America, and SCEI sort of has control in Japan).
If SCEE were to cut the PS2 price now, they would be vulnerable to that price inertia Nintendo was talking about (people would believe Xbox had more value than PS2) when Microsoft would cut the Xbox price months later (and then Sony would be in the position of nearly cutting the price again, like they are now after the price war got out of control, started by Microsoft instead of Sony, and making the other consoles more competitively priced against PS2--it was going to be Xbox £299, PS2 £199 and GC £149--then it became Xbox £199, PS2 £199 and GC £129...if Sony cut price now, that would make it vulnerable if MS were to cut the price again, so Sony's going to wait instead of doing it now I believe).
This way Sony could cut the PS2's price to £129 soon enough and boost sales, while at the same time forcing MS to cut their price (Sony wants a price war). This £129 on August 30th rumor interestingly coincides with the rumored Xbox price cut to £149.99 shortly after the ECTS show. If both are true, this could make MS change their plans and drop to £129.99 immediately after Sony does, to match PS2's price and keep up (they don't want price to be an inhibiting factor).
This way Sony regains control of the price war, forcing MS to follow suit after Sony's price cut (and not the other way around), and they wouldn't be vulnerable to an Xbox price cut months later. (which would happen if SCEE cut the price now) Xbox would have the price advantage and dictate things. Sony doesn't want that, they want the price advantage and dictate the price war (forcing MS down, not the other way around). And if SCEE cut the price now, Xbox would have more price cut potential (since it would cost more it would be able to cut the price more and make PS2 and GC vulnerable, whereas PS2 & GC would have much less price cut potential and eventually run out of price cuts...say, at £99).
And that would make all three £129. Which could then in turn make Nintendo cut the price to £99.
Would make an interesting second round of the price war in Europe.
And would be an interesting strategy by Sony.
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There's a new rumor going around that (despite the Australian price reduction) SCEE will cut the PS2's price to £129.99 on August 30, the day after they announce it at ECTS.
It kind of makes sense.
Instead of cutting the price now as they originally planned (they were going to drop this spring), in light of the recent price war in Europe, SCEE would wait till ECTS to regain the price advantage and regain control of the price war in Europe (SCEA has control of the price war in America, and SCEI sort of has control in Japan).
If SCEE were to cut the PS2 price now, they would be vulnerable to that price inertia Nintendo was talking about (people would believe Xbox had more value than PS2) when Microsoft would cut the Xbox price months later (and then Sony would be in the position of nearly cutting the price again, like they are now after the price war got out of control, started by Microsoft instead of Sony, and making the other consoles more competitively priced against PS2--it was going to be Xbox £299, PS2 £199 and GC £149--then it became Xbox £199, PS2 £199 and GC £129...if Sony cut price now, that would make it vulnerable if MS were to cut the price again, so Sony's going to wait instead of doing it now I believe).
This way Sony could cut the PS2's price to £129 soon enough and boost sales, while at the same time forcing MS to cut their price (Sony wants a price war). This £129 on August 30th rumor interestingly coincides with the rumored Xbox price cut to £149.99 shortly after the ECTS show. If both are true, this could make MS change their plans and drop to £129.99 immediately after Sony does, to match PS2's price and keep up (they don't want price to be an inhibiting factor).
This way Sony regains control of the price war, forcing MS to follow suit after Sony's price cut (and not the other way around), and they wouldn't be vulnerable to an Xbox price cut months later. (which would happen if SCEE cut the price now) Xbox would have the price advantage and dictate things. Sony doesn't want that, they want the price advantage and dictate the price war (forcing MS down, not the other way around). And if SCEE cut the price now, Xbox would have more price cut potential (since it would cost more it would be able to cut the price more and make PS2 and GC vulnerable, whereas PS2 & GC would have much less price cut potential and eventually run out of price cuts...say, at £99).
And that would make all three £129. Which could then in turn make Nintendo cut the price to £99.
Would make an interesting second round of the price war in Europe.
And would be an interesting strategy by Sony.
It kind of makes sense.
Instead of cutting the price now as they originally planned (they were going to drop this spring), in light of the recent price war in Europe, SCEE would wait till ECTS to regain the price advantage and regain control of the price war in Europe (SCEA has control of the price war in America, and SCEI sort of has control in Japan).
If SCEE were to cut the PS2 price now, they would be vulnerable to that price inertia Nintendo was talking about (people would believe Xbox had more value than PS2) when Microsoft would cut the Xbox price months later (and then Sony would be in the position of nearly cutting the price again, like they are now after the price war got out of control, started by Microsoft instead of Sony, and making the other consoles more competitively priced against PS2--it was going to be Xbox £299, PS2 £199 and GC £149--then it became Xbox £199, PS2 £199 and GC £129...if Sony cut price now, that would make it vulnerable if MS were to cut the price again, so Sony's going to wait instead of doing it now I believe).
This way Sony could cut the PS2's price to £129 soon enough and boost sales, while at the same time forcing MS to cut their price (Sony wants a price war). This £129 on August 30th rumor interestingly coincides with the rumored Xbox price cut to £149.99 shortly after the ECTS show. If both are true, this could make MS change their plans and drop to £129.99 immediately after Sony does, to match PS2's price and keep up (they don't want price to be an inhibiting factor).
This way Sony regains control of the price war, forcing MS to follow suit after Sony's price cut (and not the other way around), and they wouldn't be vulnerable to an Xbox price cut months later. (which would happen if SCEE cut the price now) Xbox would have the price advantage and dictate things. Sony doesn't want that, they want the price advantage and dictate the price war (forcing MS down, not the other way around). And if SCEE cut the price now, Xbox would have more price cut potential (since it would cost more it would be able to cut the price more and make PS2 and GC vulnerable, whereas PS2 & GC would have much less price cut potential and eventually run out of price cuts...say, at £99).
And that would make all three £129. Which could then in turn make Nintendo cut the price to £99.
Would make an interesting second round of the price war in Europe.
And would be an interesting strategy by Sony.
Page: