Through the last week there has been plenty of hullabaloo over Sony cutting the price of PS3. If you ask me, it was inevitable. Ask a newborn baby if he’d like a PS3 and he’s say “too damned costly!” Well, Sony has confirmed the cut (after denying it some days ago) and now the PS3 will sell at $499 starting Tuesday.
Sony will also be introducing a $599 80GB model, bundled with a copy of MotorStorm.
Now, the question arises, was this move from Sony a reaction to Microsoft extending the warranty on their Xbox 360? One news item at Digg does say that the Xbox 360 Elite’s sales have jumped by 2400%! Is Sony trying to play safe and garner more sales?
Last morning, I speculated whether Sony would be getting any more sales. Microsoft is swimming in money with the massive sales increase. Sony isn’t left behind, in fact they’ve gone far ahead, atleast at Amazon. The price drop has caused an increase of (I kid you not) 2800% on Amazon. The sales for the 60GB PS3 have actually exceeded the Wii and “Guitar Hero: Rock the 80s”.
I think there are some economics lessons to be learned here.
[Via 1UP, Thanks David]
[Update Via Digg]